Building the Empire: How Tinker Fits Ilito 'Meths Master

In Focus: Who's Earning What?

JU ..rAUGUST THE BUSINESS OF COMMUNICATIONS 1987 Building the Empire: How Tinker Fits Ilito 'meths Master

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Gathered in what is to be Grant linker's new Culver Studio! office are, from left, Tinker, Gannett v ce chairman Doug hicCorkindi le, CEO John C irley and broadcast divisio. chief Cecil Walker. Stick withthe onlyoft

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REPORTS

Ad dollars from abroad. .. Bullish on Blair... KMOV gets the spirit ... New challengers for TV 13 Guide ... Cable comes (at last!) to Palo Alto.

MARKETING/PROMOTION 4 STARTING OVER IN DALLAS PRESIDENT'S NOTE Heritage hopes smart marketing will make a 23 winner out of a troubled cable acquisition. BYCECILIA CAPUZZI 8 LETTERS NETWORK TV 32Then, all of a sudden, 17 "doing it" was okay at CBS. LOOSER, YES, BUT STILL WHAT'S ON THE DEANS OF DISCIPLINE 32 A monthly calendar How fares the network censor? Cut budgets, uncut cable films and looser societal attitudes are 21 fundamentally altering the role of broadcast AUDIENCE standards and practices. Case of the Missing BY L.J. DAVIS Kids

COMPANIES 26 THE PUBLIC EYE GRANT'S BACK & Hype in a Good GANNETT'S GOT HIM 40 Cause Gannett has a Midas touch with newspapers, but BY LES BROWN it's never been a TV power. Now with Grant Tinker and a station group under its belt, an 28 emerging media giant is changing all that. THE BUSINESS SIDE BYJERI BAKER So Much For the Dog Days CABLE BY MERRILL BROWN MTV'S GREAT LEAP BACKWARD MTV went public, the music went soft and viewers 45 65 PRIVATE EYE went elsewhere. Now it's back to hard rock and At Fox, the Quarry is advertisers are tapping their feet once more. Teenagers BYFREDERIC DANNEN BY WILLIAM A. HENRY III

PRODUCTION 66 BABE IN TOYLAND MARKET EYE Andy Heyward built DIC from nothing into one of 48 Loughlin's Lament the world's largest animation studios. BY JEAN BERGANTINI BY PATRICIA E. BAUER GRILLO

PROGRAMMING 68 DISTANT SIGNALS THE SYNDICATED BENCH Torn Curtain BY MICHAEL POLLAN 52 BY DON GRAFF THE SYNDICATED COUCH BY JOSEPH VITALE 70 Syndicators have found riches in courtroom SOUND BITES drama. Now they're looking for more on the From an interview shrink's couch. with television producer Stephen J. Cannell IN FOCUS:

THE 1987 SALARY REVIEW 72 Channels' first annual look at how the new 59 RUNNING THE Cover photograph: Bonnie Schiffman economics of television are changing compensation. NUMBERS

2 CHANNELS / JULY/AUGUST 1987 3 MORE REASONS WHY WE'RE AMERICAS *1 RENT -A -MOVIE CHANNEL

1. "Request is committed to supporting the cable industry's efforts to build the pay -per -view business."-Dale Parker, Heritage Communications, Des Moines, IA 2. "One of the major advantages of Request is the opportunity to work directly with the movie studios."-Kenneth Krushel, American Cablesystems, Beverly, MA

3. "Request covers the marketing bases we need to make pay -per -view a mainstream part of Our business."-John Clark, Cencom Cable, St. Louis, MO

For more information call in N.Y. (212) 984-5900; LA.(213)557-9828; Atlanta (404) 392-9860; Chicago (312)884-1390. Ole OSIII AMERICA'S#1RENT -A -MOVIE CHANNEL'

Reiss Media enterprises, Int . 1987 All Rights W11,11'. Request television Is a registered servile mark of Reiss Media f nterprist s, Inc. PLEASE COME AND ENJOY OUR EXQUISITE THAI CUISINE KHUN AKORN The ABC's of Success THAI RESTAURANT TIME OUT: By Lindsey Bareham As September 1, the day people meters become the principal national 'It's the food the makes this new restaurant an ABSOLUTE MUST to visit. ratings tool, draws near, the television community is increasingly The food is so complex, rich, tasty and concerned with assessing the impact the technology will have on delicious that it is quite unlike any other Thai food I've tried in London. This is Thai program ratings and advertising revenues. The advent of the new food at its most regal.' audience -measuring technology and the growing competition between ratings HARPERS & QUEEN: by Lloyd Grossman services, while causing temporary uncertainty, can only lead to more accurate 'A fine example of upmarket ethnicity. I and fairer assessments of who is watching what. look forward to a return visit.' Also recommended By: WHATS ON The magazine business is not unlike the television business. Advertising 3 -course set Lunch £9.50Lunch Menu £5.80 success for both is driven by delivering audiences that advertisers want to OPEN 7 DAYS A WEEK FOR LUNCH AND DINNER reach. Also, advertisers in both markets demand independent verification of 136 Brompton Road audience levels and involvement. Knightsbridge For these reasons I am pleased to announce the completion of Channels' first London SW3 1HY Tel: 01-225 2688 circulation audit by the Audit Bureau of Circulations (ABC). ABC audits our circulation records annually to verify both the number and job titles of the industry professionals who receive Channels. Results of the audit show that Channels reaches over 28,000 While a circulation audit provides advertisers with verification that a publication is reaching the audiences they want to reach, it doesn't demonstrate whether the magazine is being read and how important it is as a source of information. To learn the answers to these and other questions, Channels engaged Frank N. Magid Associates, one of the country's leading television and media research companies, to conduct a thorough industry study ahe to determine which magazines are most important. About 450 interviews were conducted with station personnel (general managers, program directors and &writXiciadetie others), station group executives, advertising -rep firms and program producers. TANDOORI RESTAURANT All of these interviews were done six months after the March 1986 launch of the "new" Channels. We were gratified to learn that many of the changes had FULLY LICENCED not gone unrecognized. Most importantly, of the five magazines surveyed 1 BRECKNOCK ROAD (Channels, Broadcasting, Electronic Media, TV -Radio Age and View), LONDON N7 Channels, with its new design and editorial focus, finished a solid third (behind Tel: 01.267.7550 the two weeklies) in virtually all categories. Opening Hours: We also used this study to ascertain what business topics were of most 12noon - 2.30 p.m. interest to our readers. The Magid research showed that marketing and 6 p.m. - 12 midnight promotion are at the top of that list of concerns. Consequently, over the past couple of months, we have introduced several new features, including, most notably, a marketing and promotion section, called "The Selling Of.... " We plan to continue to conduct these annual industry surveys in order to stay abreast of the rapidly changing television business. As we continue to grow and change, I hope you will let me know what you think of our efforts.

Manzil Restaurant CONTINENTAL FULLY LICENCED 18 YORK WAY LONDON WI Tel: 01.837.8042

4 CHANNELS / JULY/AUGUST 1987 CHANNELS Editor in Chief Itdoesritcostanymore LES BROWN Publisher GEORGE M. DILLEHAY tomakesure your Executive Editor MERRILL BROWN Managing Editor PETER AINSLIE media investmentpaysoff. Art Director TRACI CHURCHILL Senior Editors When selling your television or Memorandum of Information. Our STEVE BEHRENS, RINKER BUCK, JERI BAKER radio station, or restructuring your detailed presentation to qualified Associate Editors financing, it pays to depend on media buyers and financing sources pays off JOSEPH VITALE, CECILIA CAPUZZI West Coast Editor brokers with investment banking skills. with completed transactions in 60 to PATRICIA E. BAUER People who approach broad- 90 days. Assistant West Coast Editor casting and capital markets with equal For a confidential discussion JOAN VON HERRMANN expertise. The experts at Gammon & on the current marketability of your Washington Editor PATRICIA HERSCH Ninowski. media investment, call our Washing- Assistant Art Director We reinforce your property's ton office or one of our growing num- CAROLYN Z. MARTINS market value with our comprehensive ber of regional offices. Editorial Assistant CHERYL GERBER Contributing Editors JOHN F. BERRY, DAVID BOLLIER, L.J. DAVIS MARK FRANKEL, MERYL GORDON WILLIAM A. HENRY III DAVID LACHENBRUCH, MICHAEL POLLAN JAY ROSEN, JOEL SWERDLOW, JAMES TRAUB GAMMON 6 NINOWSKI Photo Research LAURIE WINFREY/CAROUSEL, INC. MEDIA INANMENKS. INC. Interns TIM BOCK, MICHAEL BURGI 1925 K Street, NW Washington, DC 20006 ERIN KELLY, MATI LASZLO Member: National Assoctatton of Medea Brokers (NAMB), NAB, INTV FRANCESCA LAPRELLE, KIM MARTIN Washington: Ronald J. Ninowski, James A. Gammon, Donald R. Russell (202) 862-2020. JUAN SUAREZ Kansas City: Richard T. Wartell (913) 681-2901. Denver: Marc O. Hand (303) 733-5637; Al Perry (303) 239-6670. Philadelphia: Jack F. Satterfield (215) 525-8767. Los Angeles: Carl J. Fielstra (714) 583-0366. Associate Publisher BRONNA A. BUTLER

Production Manager SUSAN C. TURK Circulation Manager LAWRENCE M. MCKENNA Controller CATHERINE PAONE OfficeManager CARLTON HILL Administrative Assistant DEBORAH GERMAN

Associate Publisher-Advertising Sales JOEL A. BERGER Eastern Advertising Manager JONATHAN BLINKEN Western Advertising Manager NELDA H. CHAMBERS Sales Assistant LAURI MOYER Advertising Sales Coordinator BRIAN FUORRY Advertising Sales Offices New York: 19 West 94th St., New York, NY John McLaughlin fuels the fire while respected journal- 10036,212-302-2680 WestCoast:1800 Century Park ists Jack Germond, Morton Kondracke, and Robert East, Suite 200 Los Angeles, CA 90067213-556-1174 England:Jack Durkin & Co. 55 Hatton Garden, London Novak provide informative and often explosive opinions. EC1N 8HP England Tel: 011-441-831-1131 Join them all on the McLaughlin Group. It just might be the C.C.Publishing Inc. President freshest, boldest, most incisive political show on the air. PAUL DAVID SCHAEFFER Don't miss it. The people who run this country never do. Administrative Assistant LIBBY EDWARDS CHANNELS The Business of Communications(ISSN 0276- The McLaughlin Group 1572)is published eleven times a year by C.C. Publishing Inc., 19 West 94th Street, New York, NY 10036. Application to mail at second class postage rates is pending at New York, NY and additional Made possible by a grant from GE. mailing offices. Volume 7, Number 7, July 1987. Copyright1987 by C.C. Publishing Inc. All rights reserved. Subscriptions: $65 per year; all foreign countries add $8. Please address all subscription mail to CHANNELS The Business of Communications, Sub- scription Service Dept., Box 2001, Mahopac, NY 10541, or call 914-628-1154. Postmaster: Send address changes to CHANNELS The Business of Communications, Subscription Service Dept., Box Check local listings for station and time ) A RE :OSTER. TRADEMARK Of GENERAL ELECTRIC COMPANY 2001, Mahopac, NY 10541. Editorial and business offices: 19 West 49th Street, New York, NY 10036; 212-302-2680. Unsolicited manu- scripts cannot be considered or returned unless accompanied bya stamped, self-addressed envelope. No part of this magazine may be reproduced in any form without written consent.

CHANNELS / JULY/AUGUST 1987 5 111011 Illilitc! 111)

Attitudes Nosted by LAW Dano & Nancy Glass POWER YOUR GROWTH WITH LIFETIME IS ESPECIALLY FOR WOMEN. A unique line-up of original, informative and entertaining programs like Attitudes and The Regis PhilbinShow, are produced and scheduled specifically for her. She powered a 75% ratings gain last year alone!* LIFETIME IS A PROVEN SUCCESS FOR MORE LOCAL AD SALES. Women are your most important retail customers. And for sales impact, Lifetime delivers a higher concentration of women 18-49 and working women than anynetwork- broadcast or cable.1- CALL US TODAY. Find out why more operators are powering their growth by making Lifetime part of their core package. Seymour Kaplan, Vice President, Affiliate Relations

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$300,000 EQUITY FINANCING has been arranged for SUMMIT MEDIA INTERNATIONAL, INC. of Golden, Colorado

The undersigned assisted the company in the placement of the securities for this start-up publishing company. Simplify, Simplify, This notice appears as a matter of record only. In reference to "VCRAd Test 851 Lincoln Center 1133 20th Street, N.W. Results Due" [March Reports], can't Columbia Pictures gauge 5401 W. Kennedy Blvd. Suite 260 dealer and viewer reaction to VCR Tampa, FL 33609 813/877-8844 Washington, DC 20036 202/778-1400 ads just by releasing tapes with inserted ad spots instead of investing millions in surveys, research, etc.? It's true that commercials in movie COMMUNICATIONS theaters are already a way of life in EQUITY Europe and South America. But Columbia and the advertising ASSOCIATES community should wake up-commercials in movie theaters are also a way of life in the U.S.A. I'm a supporter of the ad industry, but not when costly research and surveys get in the way of simple initiative. The answer is just to let ad spots precede the feature. The viewer then gets a lower price on both rentals and purchases. Maybe it's too simple. CD Diane M. Birringer COMMUNICATIONS Milwaukee, Wis. EQUITY ASSOCIATES

is pleased to announce the opening of our affiliated New York City company, CEA, Inc., with offices at

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Donald Russell, Managing Director &Group Vice President - Investment Banking Golden Touch Diane Healey Linen, Group Vice President - Television Division paul Schaeffer's recent Richard N. Savages, First Vice President - Television Division President's Note [March] William D. Simon, Vice President - Entertainment Division brought to mind your sixth anniversary, and it prompts me INVESTMENT BANKING, BROKERAGE, FINANCIAL AND APPRAISAL SERVICES to tell you how important your magazine FOR THE CABLE T.V., BROADCAST AND ENTERTAINMENT INDUSTRIES has become to my business reading. Your profiles of industry personalities,

8 CHANNELS / JULY/AUGUST 1987 markets and companies are first-rate. Your writers are clear and articulate. Your design is engaging. In short, it's a great book. Daniel E. Gold President Knight-Ridder Broadcasting Inc. Miami, Fla.

CBS's "Leadership" The storm over network television news may be blowing itself out, but it has left some effects behind. One of those effects is that a myth long propagated is taking on new life. It has appeared in print and has been repeated time after time on the air without proof and without challenge. This is the myth that CBS was, until Laurence Tisch landed on it, the "undisputed leader" in television news. The notion of "undisputed leadership" of course helps the story. "How are the mighty fallen!" is always a good angle. But has CBS been the undisputed Channels leader? I spent more than 34 years (ending in January 1984) working for NBC News and competing with CBS, Subscribers: and I do not think so. I know many people, in and out of NBC, who do not think so. Should you at any time Granted that over the decades CBS has had its success. Hasn't NBC? Weren't there nominating conventions have a question about at which we beat CBS badly? Election nights, too? How did each network's your subscription, you nightly news stack up against the other's, its documentaries, Sunday can call our customer service interviews, early morning shows, religious programs, instant specials, department directly for a coverage of special events, coverage of breaking stories when regular quick answer. The number programming was interrupted and the news department took over? Before we hear any more about to call is (914) 628-1154. undisputed leadership, could some of these points be examined? If you would like to notify us of a change of address, please write I do agree that CBS was way out to us at PO Box 2001, Mahopac, New York, 10541, enclosing the ahead in getting itself written about and address label from your most recent issue of Channels. praised. It supported and publicized its newspeople in a manner and to a degree that NBC took a long time to catch on to. It used its news department to build a reputation for the entire network. Again, NBC was behindhand. These are some of the reasons the myth took hold in the first place. Journalistic superiority Reginette Restaurant is, however, another matter. Let's see 16 GARWAY ROAD, LONDON W2 01-229 0457 some evidence. Edwin Newman French and Yugoslavian cuisine recommended by City Limits (Lyn Gardner) New York, N.Y. Starters all at £1.35 Main Dishes all at £3.75 Desserts all at £1.25 Large selection of French and Yugoslavian wines Channels welcomes readers' comments. Fresh Fish a specialty daily Address letters to the editor to Channels, 19 West 44th Street, Suite 812, New York, N.Y. 12 noon -3 p.m. 6:30 p.m. -Midnight Parties Welcome 10036. Letters may be edited for purposes of clarity or space.

CHANNELS / JULY/AUGUST 1987 9 Tend Tina It's set to explode January, "Pity thepoorcompetition!"

If you're looking for a hero with a heart of gold, you want Mr.T on your side! Just ask Tribune and TVX. They've enlisted "T and T" to battle in their toughest time periods and they're getting 24 half hours of double -fisted family entertainment. "T and T" delivers dynamite action for the whole family. It's perfect for fringe or early access. Perfect to break through the glut of sitcoms!

"We looked at more than 150 half-hour pilots and concepts to fill our weekend access time periods for Tribune Entertainment. We selected only two. "T and T" is an outstanding crossover of action and humor. Good family entertainment."Sheldon Cooper, President, Tribune Entertainment

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while BMW's $34.1 million represented a 26 percent increase. Hyundai, break- Volkswagen increased ing in its new line of Korean cars, its TV ad budgets 43 entered the TVB list at $43.5 million. percent; Toyota is up 50 While the dollar amounts of foreign ad percent; Isuzu grew by budgets aren't as dramatic as GM's, 129 percent. Ford's or Chrysler's, collectively they indicate that the lion's share of growth is foreign. This is especially true in spot TV, which grew 40 percent in 1986, compared with an 11 percent growth in network ad sales in this category. "There's no question that the Japa- nese have been a major, major force in spot over the last two years," says Ken- neth P. Donnellon, marketing v.p. for Blair Television. Indeed, Suzuki Motor Co.'s spot spending went from $806,000 in 1985 to over $12.3 million last year-with not a nickel for network. Similarly, Toyota's spot spending jumped from $78.8 million in 1985 to over $126.6 million last year. Donnellon says that spot activity has been similarly brisk this year. VCRs, stereos, radios and other electronic products have also generated dramatic revenue growth in spot TV. The electronics industry is playing a growing role in co-op advertisng and has become more visible on television. But the globalization trends sweeping the U.S. economy are having a far more Advertising Dollars From Abroad profound effect than of spurring growth in various categories. Direct foreign investment in U.S. companies is also Pouring Into U.S. Television increasing, as a result of the change in macroeconomic conditions. British and But will they bring relief or instability to the market? Dutch giant Unilever, for example, acquired Cheeseborough-Ponds last year, one of the biggest U.S. consumer - The globalization of theU.S. econ- became the largest TV -advertising seg- products companies and advertiser. As omy is giving television advertising ment in first-quarter '87 as a result. In other foreign firms buy into U.S. compa- a distinctly foreign accent. While 1986, overall automotive TV advertis- nies, a larger share of TV ad dollars will viewers in the U.S. watch TV on sets ing expenditures climbed a healthy 22 come from foreign -owned companies. made in Japan, tape kids shows ani- percent, to $2.1 billion. That increase This should come as no surprise, says mated in Japan on Japanese- or Korean - reflects tremendous growth in foreign L.F. Rothschild analyst Alan Gottes- made VCRs or watch shows shot on ad spending. Toyota's automotive divi- man: "The most attractive country on "runaway" sets in Canada, television sion, for example, increased its TV ad the planet to sell goods at a profit is ad dollars increasingly are coming from spending in the U.S. by 50 percent, to here, but what's important [about for- abroad. nearly $160 million. Honda upped its eign advertisers] is the creation of a Numbers from the Television Bureau budget 57 percent, to $70 million and new client. The emergence of new com- of Advertising/Broadcast Advertisers Isuzu, pushing its popular "Liars" cam- petition is tremendously stimulative to Reports reveal that seven of the top 50 paign, boosted spending 129 percent, to the advertising industry." TV advertisers last year were foreign nearly $30 million. By contrast, General But if the trend continues, TV sta- firms-up from six in '85. Foreign Motors increased its TV budget 10 per- tions will be more vulnerable to changes advertisers also showed a higher rate of cent, to $400 million, while Ford such as currency fluctuations and bad growth, on average, in their TV ad bumped spending up 12 percent, to economic times overseas. Indeed, it is spending than did domestic advertisers. nearly $300 million. possible that foreign advertisers could While this trend is evident in con- And not all the foreign growth came generate as much volatility in the spot sumer electronics, it is particularly true from Japan. Volkswagen bolstered its market as they do growth. in the cars -and -trucks category, which spending 43 percent, to $86 million, MICHAEL SCH RAGE

CHANNELS / JULY/AUGUST 1987 13 REPORTS

been substantial. We convinced them they better sell it to us now or there Rosenfield to the Rescue would be nothing left." Rosenfield predicts that Blair can Blair's new owners must restore station confidence in reps. more than make up for the loss resulting from Cap Cities/ABC 's decision to Squeezed by heavy debt, high pro- move its national sales in house, which gram costs and disappointing deprived Blair of some $100 million in growth in advertising sales, local billings. He is beefing up the morale and stations are feeling the pinch, and often efficiency of Blair's sales force and going the first place they look to cut costs is after clients in some of the 70 markets in the hefty commissions paid to their which Blair is not represented. The national ad -rep firms. Many are now recent erosions in ad -commission rates demanding that ad reps lower their fees can be reversed, he says, by transform- or expand their services, one reason ing Blair into a "one -stop" business that why the $6 billion a year rep industry offers a full range of audience, program- has reported such mixed results lately. ming and news -research services. But the uncertain outlook for ad reps Rosenfield: Growing the business in new ways. "I started out in this business in radio, does not daunt James H. Rosenfield, the just as television was coming on in the former CBS executive v.p. who led an ent stations, many of which doubted 1950's," Rosenfield recalls. "My father- investor group that bought John Blair Reliance's commitment to broadcasting in-law told me to get out-TV was sup- Communications this spring from Saul and were actively considering dropping posed to be the future. Yet look what Steinberg's Reliance Capital Corp. "If Blair if it remained under Steinberg. happened in radio. Then there were 800 this were a static and mature business, "[The Reliance ownership] created stations making several hundred mil- as some analysts claim, then I'd sure be much more of a problem than people lion. Today, there are 10,000 stations worried," he says. "But I enjoy the realized," Rosenfield says. "The sta- making several billion. New media challenge of proving that we can grow tions perceived that Reliance was run- don't drive out the old media. They just this company in new ways." ning the business simply to get it into cause the business to change in ways Rosenfield's first challenge will be shape to sell it, and in a matter of that makes the whole picture larger." shoring up relations with Blair's 133 cli- months the client defections could have RINKER BUCK

schedules them.) In news, he raided the talent at ABC affiliate KTVI, wooing Home Rule Comes To A Former O&O away top -rated anchor Larry Connors, two reporters and several producers. Viacom's KMOV is catching the spirit of St. Louis Overall, KMOV still trails market leader KSDK by 2 ratings points in sign -on -to -sign -off averages. But Cohen you can't tell Allan Cohen, general KMOV, the station has surged in the claims huge demographic gains (women manager of KMOV, St. Louis, that ratings, climbing from a weak number 18 to 49, for instance, are up by 400 per- Ted Turner's abortive run on CBS two in the market to within striking dis- cent), and profits, he says, have now was that bad a thing. tance of perennial market leader reached levels "comparable to the best KMOV (formerly KMOX) was the KSDK, the NBC affiliate owned by Mul- station groups in the country." owned -and -operated station CBS hur- timedia. "This is a competitive market "My bosses at Viacom have been sen- riedly sold to Viacom in December 1985, again," says KSDK v.p. and general sational, primarily because they under- to raise cash for its elaborate stock - manager William L. Bolster. "The dif- stood that this station had to be pro- repurchase plan in order to ward off ference has been made by one thing: the grammed as a St. Louis outlet," Cohen Turner's bid for the network. The sale ownership change at KMOV." says. "We're a brand-new station here seemed to symbolize everything that Viacom's first decision when it took and it's fun to be a broadcaster again." was happening in television during the over last May was to retain general RINKER BUCK wave of mergers and acquisitions-the manager Cohen, a six -year veteran of troubles at the networks, the frenzied the station who had often chafed under pace of station trading. But the big CBS's refusal to allow network preemp- losers in the transaction, many feared, tions. Viacom gave him carte blanche to would be KMOX viewers, who would program according to local needs. now be deprived of the resources and Cohen promptly commenced an stability that network ownership sup- assault on the network schedule, pre- posedly had guaranteed. empting an hour a day and reshuffling Well, look again. Since May 1986, three and a half hours daily of CBS's when Viacom formally took over the feed. (He runs the Morning Show ear- station and changed its call letters to lier and Late Night later than CBS Moved to KMOV: top anchorman Larry Connors.

14 CHANNELS / JULY/AUGUST 1987 TV Guide Takes On All Corners Today's challengers find a heavyweight in fighting trim.

nce again, there's pressure on the listings of network programs. The champ, at 11.4 When it was faced with Time Inc.'s million subs, and two bible of TV listings, TV Guide, to feisty contenders. 0respond to the growing audience 1983 launch of TV -Cable Week, TV for cable programming. Newspapers Guide changed in ways not predictable such as the Miami Herald are improv- a few years back. "TV Guide could have than in 1985. But other categories were ing their weekly TV -listings insert sec- become a white elephant," says Leo up: 66 pages in food, 28 in autos, ten in tions, and new entrepreneurs are mak- Scullin, senior v.p. at Young & Rubicam drugs and 39 in retail. And while the ing a run at the industry giant. advertising agency. "But TV -Cable networks inevitably buy cheaper, Boston's Cable Publications Inc. pub- Week kicked them in the ass and caused black- and -white ads, the growing seg- lishes monthly giveaways such as them to improve." Reacting quickly and ments advertise often in four color, at Cabletime as well as Cable Choice, quietly, Walter Annenberg's TV Guide $100,000 a page. which is sold in the Los Angeles market spent a reported $50 million to thwart Although 52 percent of TV Guide's and has achieved 50 to 55 percent pene- Time. The staff was shaken up, cover- listings are now cable, they're not "sys- tration. J. Robert Livingstone, presi- age improved and advertisers were tem specific"-listing every last pro- dent and publisher, says his guides, will courted for a change. gram on individual cable systems. inevitably "cause problems for TV As a result, TV Guide seems, in many Meanwhile, the competition gets Guide." ways, stronger than ever, despite some stronger, producing better edited and The newest challenger,former obvious problems. Its 17A million circu- designed magazines. Moreover, Cable Newsweek president Mark Edmiston, lation is off from 1980's 19.3 million. Guide, by acquiring competitors, has heads an investment group which What's more, it has felt a big drop in raised its monthly circulation to six mil- recently acquired the monthly Cable network -purchased ads. lion. "Time got held up by treating its Guide. He says he'll put out a livelier, TV Guide publisher Eric G. Larson guide as a news publication," Edmiston more entertaining magazine than TV acknowledges that the magazine ran says. "They should be nothing more Guide-one that also offers complete 143 fewer network ad pages last year than entertainment." JOHN F. BERRY

would compete with the co-op's. Since the Century agreement is con- Fear and Loathing in Palo Alto siderably less demanding than the original, which it supplants, the co-op A First Amendment lawsuit gives cable the willies. derives some benefit from it. But that's small comfort. Says Peter Fechheimer, Sometimes it seems that whatever the co-op's general manager, "It's is ailing the cable industry is also Farrow's lawsuits unfortunate that another company is ailing Palo Alto, Calif. First there coming in here, but we're going ahead." were the oddball requirements cities have helped fan cable's The Palo Alto suit is one of three in pressed on cable companies back in the overbuilding fears to California-the others being in Sacra- franchising frenzy of the late '70s (plant- mento and Los Angeles-that Farrow ing trees, for example). Palo Alto was such a degree that its filed in 1983 with the purpose of chal- something of an oddball in giving its support of full First lenging the constitutionality of exclu- franchise to an offshoot of a local gro- Amendment status is sive franchises. cery cooperative. While only a handful of overbuilds are Then there was the fear of phone com- beginning to erode. scattered around the country, the Far- panies entering the cable business. In row lawsuits have helped fan the indus- Palo Alto, Pacific Bell is building the try's overbuilding fears to such a system and leasing it back to the cable Harold Farrow. In lawsuits filed degree that its support of full First co-op. As for the fear of industry giant against the city, Farrow claimed that Amendment status is eroding. Telecommunications Inc., well, Palo cities cannot restrict cable franchises, Farrow responds that "some cable Alto's got that, ever since TCI pur- because cable is, in effect, a publisher companies are so afraid of competition chased Heritage Communications, protected by the First Amendment. that they're willing to rewrite the First which had been hired to manage the sys- Even as it switched on its first sub- Amendment. When you have an ordi- tem. Now the concern is "overbuilding" scriber last May, the cable co-op's nary American company trying to do (having two systems cover the same future was clouded. This was because a business in this field, the First Amend- area), and Palo Alto has that, too, court ruling last December required ment should be protected. I think that's thanks to Century Federal Inc. and its Palo Alto to grant a license also to Cen- why they wrote the Constitution." First Amendment activist lawyer tury, allowing it to build a system that LUCY BALLARD

CHANNELS / JULY/AUGUST 1987 15 erag

SURVEYARE SKARE/PV WOMEN TRENDS SURVE

OV RTG91

56 A 49 TB

8 6 12 1 18 14 310 0 3 9 17 427 28 24 23 8 2529 10 8 30 28 1616 20 2 1718 6 1823 5 3 20 18 1415 16 15 16 18 9 3 7 8 10

II 4 6 5 3 10 2 2 3 7

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ARBITRON RATINGS We know the territory. JULYAUG NFL Goes Cable by Cecilia Capuzzi

AUGUST 16:Cable's first nationally telecasting's KVIL AM and FMin Dallas Penelope Fleming. Meet the Pressis castNational Football Leaguegame is (the highest price paid for a radio prop- moved up from 11 A.M. to 9:30, immedi- carried byESPNat 8 P.M. Eastern time. erty). AM -stereo standards and pro- ately following Today. If all goes well, look The preseason competition between the gramming are also discussed as specialty for a Saturday Today. Chicago Bearsand theMiami Dolphins formats-such as all -sports and all -busi- is also the first game to be played at ness -news --emerge. Recent attention on Miami's new DolphinStadium. On "shock radio" has broadcasters concerned SEPTEMBER 20: Fox Broadcastingairs November 8,ESPN's opening game of about jeopardizing licenses, says NAB's thePrimetime Emmy Awards,the first the regular season pits last year's Super - David Parnigoni,especially as a wave of time the program will not be seen on one of bowl championNew York Giantsagainst license renewals hit this year.United the Big Three. Fox bid $1.25 million annu- the defending AFC eastern champion Stations' Dick ClarkandFCC mass ally for three-year rights to the show and New England Patriots.ESPN is hoping media bureau chief James McKinney also paid $250,000 forAcademy of Tele- affiliates will ante up ten to 15 cents per are featured speakers. vision Arts & Sciences' Hall of Fame subscriber per month extra to carry the broadcasts. Fox publicity chiefBrad games and help defray costs associated Turellsays Fox agreed to televise the with the reported $153 million, three-year SEPTEMBER 20: NBClaunchesSunday entire awards ceremony and believes that deal with the NFL. The Big Three net- Today Show,8 to 9:30 A.M.Maria was part of the reason the newly formed works also carry NFL games.ABChas 16 Shriverand Today Show correspondent network's bid was received. (In the past, weeks of Monday -night games ($377 mil- Boyd Matsonrecycled to host program. there were discussions by the Big Three lion for three years), andCBSandNBC WNBCweathermanAl Rokeris the about eliminating less flashy awards from split the remaining 200 Sunday games. weekendWillard Scott, Garrick Utleyis the telecast.) But Fox also outbid the net- CBS concentrates on the NFC ($494 mil- principal correspondent,Bill Macateeis works, which in the past three years paid lion); NBC on the AFC ($404 million). Net- sports reporter andMarty Ryanis execu- $750,000 each and rotated the show among work season opener isSept. 13.The new, tive producer, though the program really themselves. This yearABC, CBSandNBC three-year, $1.4 billion package replaces falls under direction of senior producer offered a collective $900,000 a year. the five-year, $2.1 billion package that expired in February. r - CALENDAR SEPTEMBER 1-4:With network budget cuts filtering down to television and radio July 16-18:National Federation of Local Tex. Contact: Sharon Murphy, (414) stations, and stations trading at higher - Cable Programmers convention. Chi- 224-7132. than -ever multiples, pressure is on news cago Hilton.Contact: Sue Miller Aug. 4-6:CBS press tour. Sheraton departments to produce quality programs Buske, (202) 544-7272. Redondo Beach, Redondo Beach, with limited resources. That's the focus July 24-28:Public Radio training confer- Calif. Contact: Axel Peterson, (213) ence sponsored by National Federa- 852-2118. ofRadio -Television News Directors tion of CommunityBroadcasters. Aug. 16-19:Cable TV Administration and Assn.'sconvention in Orlando. "We can't Boulder Clarion, Boulder, Colo. Con- Marketing Society conference. Fair- just take last year's budgets and tack on tact: Pat Watkins, (202) 797-8911. mont Hotel, San Francisco. Contact: 10 percent anymore," saysBob Brunner, July 25.27:NBC press tour. Century (202) 371-0800. RTNDA chairman. AnAP -NBCsurvey Plaza, Los Angeles. Contact: Kathy Aug. 16-20:Video Software Dealers examines the state of radio news. With Graham, (818) 840-3656. Assn. convention. Bally's, Las Vegas. radio news -directors' salaries up 8 percent July28:Syndicators' press tour. Redondo Contact: Raymond Gianchetti, (609) (their TV counterparts are up 2 percent), Beach Sheraton, Redondo Beach, 596-8500. Brunner says there's a rebound in radio Calif. Contact: Sandy Quinn, (213) Aug. 30 -Sept. 1:Eastern Show sponsored news. Much -requested seminars on AIDS 653-3900. by Southern Cable TV Assn. Mer- July 29-31:PBS press tour. Sheraton chandise Mart, Atlanta. Contact: coverage and Freedom of Information Redondo Beach, Redondo Beach, Nancy Horne, (404) 252- 2454. should be widely attended.60 Minutes' Calif. Contact: Peggy Hubble, (212) Sept. 7-9:Satellite Broadcasting and Don Hewittreceives RTNDAPaul 753-7373. Communications Assn./Satellite TV White Award. Aug. 1-3:ABC press tour. Sheraton Re- Technologies Internationaltrade dondo Beach, Redondo Beach, Calif. show. Opryland Hotel, Nashville. Contact: David Horwitz, (212) 887- Contact: (800) 654-9276. SEPTEMBER 9-12:Station values will 7842. Sept. 11-13:Radio Sales Univ. training also be on the minds of radio execs attend- Aug. 1-4:Assn. for Education in Journal- seminar, sponsored by Radio Adver- ingNational Assn. of Broadcasters' ism and Mass Communications con- tising Bureau. Marriott Hotel, Port- Radio '87in Anaheim, especially after vention. Robin MacNeil, keynote land, Ore. Contact: Joann Nimetz, last spring's $82 million purchase byInfin- speaker. Trinity Univ., San Antonio, (212) 254-4800. ity BroadcastingofSconnix Broad-

CHANNELS / JULY/AUGUST 1987 17 S8&

NEW YORK SAN DIEGO WILKES BARRE-SCRANTON MCA Broadcasting, Inc. New York Times Bcstng LOS ANGELES Vt- ORLANDO V- LOUISVILLE United Television H & C Communications Providence Journal Co. CHICAGO Ifor MILWAUKEE DAYTON Fox Television Hearst Broadcasting Cox Communications PHILADELPHIA owCINCINNATI RICHMOND-PETRSBG CBS Multimedia Broadcasting Nationwide Communications SAN FRANCISCO 1ft NASHVILLE Vt- FLINT-SAGINAW-BAY CITY Group W Television Knight Ridder Broadcasting Meredith Broadcasting BOSTON lir CHARLOTTE Vt- MOBILE-PENSACOLA Hearst Broadcasting Cox Communications Knight Ridder Broadcasting DETROIT V- BUFFALO JACKSONVILLE Post Newsweek Howard Publications Harte-Hanks Comm. ATLANTA OKLAHOMA CITY Vt- WICHITA-HUTCHINSON Gannett Broadcasting v.-Knight Ridder Broadcasting Kansas State Network PITTSBURGH COLUMBUS, OH 410tFRESNO Cox Communications Outlet Communications Meredith Broadcasting TAMPA -ST. PETE Va-- RALEIGH -DURHAM vlior ALBUQUERQUE Capitol Communications Hubbard Broadcasting

SEATTLE -TACOMA Ifift SALT LAKE CITY vITOrSYRACUSE Bonneville International Bonneville International Meredith Broadcasting MINNEAPOLIS -ST. PAUL PROVIDENCE DES MOINES Gannett Broadcasting lotKnight Ridder Broadcasting Iowa State University DENVER V,- MEMPHIS OMAHA

Gannett Broadcasting New York Times Bcstng vz/trPulitzer Broadcasting PHOENIX liFt- SAN ANTONIO Vt- DAVENPORT Meredith Broadcasting Harte-Hanks Comm. New York limes Bcstng PORTLAND, OR NORFOLK VI- CHAMPAIGN & SPRING -DEC King Broadcasting Knight Ridder Broadcasting Lin Broadcasting Bears

CEDAR RAPIDS -WATERLOOIffir WACO-TEMPLE HARLINGEN-WESLACO Cedar Rapids Television KWTX Broadcasting Co. S.W. Multimedia Corp.

AUSTIN Ior EL PASO 'Alp- AMARILLO limes Mirror Broadcasting Marsh Media Cannan Communications INK SPOKANE Vt. COLORADO SPRINGS VT- CORPUS CHRISTI King Broadcasting Pikes Peak Broadcasting McKinnon Broadcasting

ovt- PORTLAND -AUBURN owFT. WAYNE Ior YAKIMA Maine Broadcasting Thirty Three, Inc. Retlaw Enterprises Vg- TUCSON FT. MYERS-NAPLES Vt- RENO H & C Communications 10rFt. Myers Broadcasting Donrey of Nevada Vt SPRINGFIELD, MO Vt- PEORIA -BLOOMINGTON Ifir MACON Woods Communications Midwest Television Multimedia Broadcasting lor JACKSON, MS AUGUSTA EUGENE News/Press and Gazette Schurz Communications Eugene Television, Inc. Vt- SOUTH BEND-ELKHART MADISON Vt- ERIE Michiana Telecasting Jet Broadcasting vzIor HUNTSVILLE-DECATUR vr CHARLESTON, SC Vt- BOISE New York Times Bcstng Media General Bcstng Evening Post Publishing

vzipt COLUMBIA, SC Ipt- SAVANNAH VT- BAKERSFIELD Cosmos Broadcasting News/Press and Gazette Ackerley Broadcasting BATON ROUGE MONTGOMERY tCHICO-REDDING vlOr Rush Broadcasting Terrapin Communications Golden Empire Bcstng Ant LINCOLN & HASTNGS-KRNY LAFAYETTE, LA BANGOR Texoma Broadcasters vlOr Diversified Communications vIlor GREENVILLE-N. BERN -WASH. lOrWILMINGTON MEDFORD-KLAMATH FALLS American Family Bcast Grp Atlantic Telecasting OFreedom Communications V- LAS VEGAS Vt- COLUMBUS, GA Valley Broadcasting Pegasus Broadcasting

These leading broadcasters are bullish on Cosby. 86 markets opened, 82 sold. The smart money is on Cosby. The Cosby Factor: Invest in it. Profit from it.

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Pay N's not the same anymore, because SHOWTIME has changed. SHOWTIME's programming is now clearly differentiated from that of its leading competitor, HBO.* And what a difference a difference makes! By adding SHOWTIME's outstanding line-up of exclusive product to HBO's, you'll be giving your subscribers the greatest variety of blockbuster entertainment pay TV has to offer. And that's a claim that Cinemax';' HBO's sister service, just can't compete with. If you're still selling your subscribers two look -alike movie services, you could be looking for trouble. Instead, look again, at SHOWTIME and HBO.

HBO is not affiliated with SHOWTIME or this promotional campaign.

IT'S NOT SHOWTIME&HBollatioROER

SHOWTIME IS A REGISTERED SERVICE MARE Of SHOVITIMUTHE MOVIE CHANNEL INC WHICH PRODUCED THIS PROMOTIONAL PIECE. HBO. and Cinemax. ale registered service marks of Home Boa Office Inc Titles exclusive in National Pay Cable *1987 SHOVITIMETHE MOVIE CHANNEL INCAll rights reserved AUDIENCE

Case of the Missing Kids by Steve Behrens One clue to syndicators' mystery lies in the glut of bartered cartoons.

Algebra problem: What is the result when you subtract x number of children from the audience of children's programs, and then subtract an additional y number next fall? Answer: Mass anxiety and generally falling ad prices among the barter syndicators selling dozens of cartoon shows in 1987-88. On top of the apparent audience loss kids' programming has suffered over the last year, it is the type most likely to suffer big ratings drops after Nielsen switches to people meters this fall. The first developments in the mystery of the missing children had nothing to do with people meters. The bad news came from local -market diaries. Syndi- began to sus- pect last fall that kids 2 to 11 were watching less kidvid, and the February sweeps confirmed the trend. down from 3 to 1.8 because barter syndi- their ratings. The reason: Kids aren't Worst hit were the hours from 3 to 5 cators were now distributing 21 shows, scrupulous about pushing the buttons, P.M. In the top 50 markets, Nielsen compared with 11 the previous year, by especially while viewing alone. Accord- reported that persons using television Duncan's count. For next season the ing to Mike Mellon, Buena Vista (PUTs) in the 2-11 age group had slipped number of shows will continue rising to research v.p., Cassandra data from dia- 16 percent in the year since February about 36, says Rick North, advertising ries estimated that in February there '86, according to Teddy Reynolds, sales v.p. at Disney's Buena Vista TV. were 1,030 kids per 1,000 households research v.p. at Petry Television. Niel- where sets were tuned to syndicated sen reported declines in 33 of the top 35 The growing selection of talking kidvid, while Nielsen's people meters markets and Arbitron in 32 of the top animals and superheroes may counted just 680 kids per 1,000 homes. 35. Jay Isabella, programming v.p. at have split the juvenile audience, Most barter syndicators quickly chose TeleRep, was so alarmed by these fig- spilling over into more time periods and to ignore the people meters' demo- ures he sent up an SOS to Nielsen and fragmenting viewership, says Petry's graphics for the next year and to get Arbitron in April: What was going on? Teddy Reynolds. Fewer kids would be that information from local diaries, as in Everybody had theories. Arbitron watching between 3 and 5 P.M. because the past. "They wanted to have at least said that since Nielsen's and its ratings some had already had their fill earlier in one constant," says Duncan. agreed, the odds were 3 million to one the day. In the meantime, Nielsen announced that children's viewing really was This kidvid glut has not only diluted several tactics encouraging kids to reg- down. Researchers speculated that audience but also ad sales. The average ister their viewing by pushing their peo- more kids were in day care or reading price per 30 -second spot in syndication ple -meter buttons. For example, par- books or watching tapes instead of next season is down 35 percent from ents are being asked to back -stop their broadcast TV. Boston Media Consult- two years ago, Advertising Age esti- kids' button pushing, and Nielsen will ants' Tim Duncan suspects that moth- mated. North says advertiser spending offer gifts as incentives to kids. ers have been reclaiming the TV set to for next season is about the same as last, But research chiefs have empirical watch Oprah Winfrey and the like. but the total is split among more shows. evidence suggesting that kids' viewing It seems syndicators can also blame And the problem won't melt away, may never be measured perfectly. "If themselves. In the first quarter of '87, because new cartoon series are piling on you leave a child unattended, he can do their first -run animated shows actually top of old ones, all of which must be anything," says MCA's Don Micallef. drew more total viewing than during aired many times to recoup costs. "It's Case in point is the one -person focus the same period in '86, according to not like the losers drop by the wayside," group whose father is Buena Vista's Duncan: 37.9 national gross ratings says Duncan. "They can't." Mike Mellon. Mellon reports: "My 18 - points compared with 33.2. But the The last thing syndicators needed this month -old daughter puts the remote shows' average household rating was fall was to rely on people meters for control in the toilet."

CHANNELS / JULY/AUGUST 1987 21 IMAGINE 24 SPOTS DURING A PRIME-T1ME NFL BROADCAST. AND 111EY'RE ALL YOURS. Now, imagine people paying you large amounts of Ameri- can currency for these spots. Well, this fall you won't have to imagine it. You can experience it. Because ESP1\1.7. The Total Sports Network7 is bringing the NFL to cable. Beginning August 16th when the Miami Dolphins tackle the Chicago Bears, ESPN will air four pre -season and eight regular season games Sundays at 8pm (ED. Not to mention exclusive coverage of the Pro Bowl. Not only will the addition of the NFL help you acquire new football -hungry subscribers, it will help you retain the ones you have. And best of all, we'll be giving you 24 30 -second spots for local advertising. That's 40% of ESPN's commercial inventory, with all the profits going directly to you. If you'd like to do more than imagine these things, join ESPN in bringing the NFL to cable, and turn a fig- ment of your imagination into reality. To find out how you can benefit from ESPN's NFL Sunday Night Football package, call your ESPN affiliate representative: Los Angeles-(213) 205-8900 Denver-(303) 740-8940 Chicago-(312) 938-4200 Bristol, CT-(203) 584-8477 Special incentives will be available to affiliates who sign before 7/1/87 IBM

'987 ESPN, Inc MARKETINGPROMOTION

Starting Over in Dallas by Cecilia Capuzzi Heritage bought a cable lemon in Texas, but smart marketing is sweetening the deal.

Heritage Cablevision in Dallas owner took over a system with colossal has set a record. It raised sub- image problems and technical obstacles scriber penetration to 27 per- to overcome. cent of the potential 380,000 cable Heritage's solution was a back -to - homes in the three metro franchises it basics approach to marketing that bought from Warner Amex in October stressed good customer relations and 1985. With cable penetration averaging scuttled the giveaway gimmicks that 57 percent nationwide, that hardly have often characterized cable's mar- sounds like a record, but one has to keting efforts. After cleaning up techni- understand the six -year history of cable cal and service problems, Heritage con- in Dallas to be impressed. ducted surveys of current and former In 1981 Warner Amex, like many subscribers to determine attitudes and other multiple -system operators at the to resell disconnects on the virtues of time, had big plans for the burgeoning cable. As other MSOs begin new and cable industry. It had just won the cov- tialsubscribers and cityofficials. expensive urban builds, Heritage's eted Dallas franchise by wowing the Warner, realizing it had over -promised, nuts -and -bolts approach provides valu- city with Texas -sized ambitions: a 90 - asked the city for concessions, aggra- able lessons for the industry. channel, interactive system complete vating the touchy relationship. The with 19 local -access channels and four company eventually dumped some $200 For Heritage, the first task in studios. million into the operation with little turning the system around was Warner, however, was in for several hope of return, and cable problems in to get its technical structure in surprises. At the time, no MSO had Dallas became a national media event. peak shape. The Dallas subscriber base, built an urban system, and cost projec- In 1983, when former U.S. transpor- Heritage director of marketing Sue tions and schedules were based on sim- tation secretary Drew Lewis was Ellen Jackson says, felt "burned," and pler, suburban builds. Only six months recruited to clean up Warner's financial the system had to demonstrate that it after Warner began its Dallas build, mess, he sold the system to Iowa -based could deliver on promises made to a construction delays, technical outages MSO Heritage Communications for skeptical public. and customer -service problems mush- $105 million following angry confronta- Some of the problems were an embar- roomed, breeding ill will among poten- tions with the city council. The new rassment. For example, poor -quality pictures-or no picture at all-were common throughout the system. The 3,500 -mile, dual cable plant had never been "swept" to examine the cable, balance the amplifiers and make repairs. And the system's two-way, state-of-the- art Pioneer converters had high failure rates. Customer service was also a problem. When subscribers were lucky enough to get through on the system's phone lines, they were often mistreated by an overburdened staff, and then kept waiting five to six days before their problem was fixed. Monthly bills were confusing, often six pages long. With the system's interactive capability, pay -per -view events were available with the push of a button and many subscribers unwit- tingly ordered them, unaware of the costs until the bill arrived. Fights and more ill will ensued. To complicate matters further, the system's 80 channels of programming A tough sell: Young, transient and out for a good time, Dallas yuppies see little need for more TV. were arranged haphazardly on the con -

CHANNELS / JULY/AUGUST 1987 23 verter. Pricing and packaging strate- was reconfigured to cluster premium keting campaign on radio, addressing gies were so complex that even sales- services and group the most -watched the common reasons that residents people had trouble explaining them. By stations and cable services on the first don't subscribe to cable-too expensive, the time the affluent sections of the city half of the box. Pricing and billing were too much TV already-and promoted were wired, Warner Amex's reputation simplified, and less complicated pro- specific cable programs. Jackson says had sunk so low it couldn't sell to many gram packages were introduced. that since no offer was attached to the of the homes it counted on. When Heri- The cleanup process took ten months, radio spots, it is difficult to track actual tage took over, there were just 90,000 during which Heritage did no market- response to the campaign, though 7,000 subscribers, or 23 percent penetration. ing. But it wasn't until June of last year, installs were completed during April. According to Heritage's research, 40 when the converter switch and channel During the same month, a ten-day free percent of the potential subscriber base realignments were completed, that sub- trial was offered by direct mail to had never subscribed, and 29 percent scriber numbers began to climb. Most of 110,000 homes, and about 1,800 new were disconnects. the 20,000 new subscribers came on dur- subscribers signed up as a result. ing the last four months of 1986, after Besides, selling cable to the gen- the changes became noticeable. In January, the system also took erally young, mobile residents Jackson's study of disconnected sub - part in the Dallas Metro Cable in Dallas is tough to begin with. Operators homes -passed preview. AccordingtoHeritage,market Six systems pooled $360,000 to run a research showed that 25 percent of Dal- total of six hours of sample cable pro- las residents live in their homes for less Consumers doubted gramming for two nights on KDF I -TV. than a year, compared with 12 percent cable offered value To date, Heritage has spent $30 mil- nationally. Outdoor activities are popu- lion improving the system, and it says lar in Texas, and with 13 over -air televi- for their money- that it now shows a positive cash flow. sion signals to choose from, residents General manager Joe King expects to are generally uninterested in more TV. a problem cable collect about $43 million in revenues But disaffection with cable, says Heri- this year-but the system probably tage's Jackson, was mainly a result of combats nationwide. won't be profitable for two years. "It consumer doubts that it offered some- would be easy to grow the system thing of value for their money-a prob- faster," says King. "But then we'd get a lem that cable confronts across the scribers also helped. The marketing lot of churn we can't handle. We want country. "When that's the case," she test, which began last fall, offered free slower, steadier growth." says, "you've got to promote program- service for 30 days to a sample pool of Heritage's commonsense approach ming, because that's the product. You 3,000 former subscribers. To test the may not be right for all cable systems, can't be selling special offers all the effectiveness of different sales tech- but it certainly offers an alternative for time." niques, the group was split into three companies hoping to woo back sub- But before Heritage could get down smaller groups of a thousand apiece. scribers disgruntled by poor service or to selling programming, it had to sell Each former subscriber received flyers a difficult new build. confidence in the system. First, the stating "Now cable TV is a class act. "In the past, cable's gimmicky mar- company replaced its 85,000 two-way And we'll prove it with 30 days of free keting was reinforced by success," says Pioneer converters with addressable cable." marketing director Jackson. "When we Tocom converters, a massive undertak- The flyers were mailed to the first and were building the first half of the indus- ing that took five months and in the con- second groups, and the second group try's penetration, it was natural to use fusion contributed to almost 8,000 dis- was also marketed by phone. Members broad -based, offer -driven campaigns. connects. Maintenance of the physical of the third group were contacted by We were selling to people who wanted plant was upgraded, the phone system door-to-door salesmen. During the free more TV. Now we're selling to those was improved and customer -service trial month, all received two phone calls who don't want more TV. Marketing is

reps were retrained. The channel lineup and two letters soliciting a response and something very different today." encouraging resubscription. Those contacted in person by salesmen had by far the highest response rate; 28.9 percent agreed to try cable again. The direct -mail group and those contacted by phone had a 2 percent and a 2.5 percent response, respectively. Of those who subscribed, 87 percent paid their first bill after the first month. After four months, 46.4 percent were still paying customers. (Of those that disconnected, 2.4 percent had moved, 11.4 percent chose to discontinue service and 39.8 percent were in collection.) Heritage considers the marketing test a success and the company will conduct similar campaigns, this time following up with more phone calls-or, as Jack- son calls it, "back -door" marketing to nurse subscribers along. During National Cable Month in General manager King: Slow, steady growth. April, the system launched its first mar- Marketing head Jackson: Selling the skeptics.

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OHSN 1987 An American Stock Exchange Compony - Trading SYmeoi HSN. Al Sights Reserved.* Commissions shown represent the average actual commissions earned per month percable system, based on a total survey sample of affiliated systems over a 3 month period. THE PUBLIC EYE Wishnow enlists an appropriate social -service agency HYPE IN A to spearhead the campaign and a commercial sponsor GOOD CAUSE to bankroll it. After that, it's relatively easy to tie in the station for talent, creative support and airtime. When Jerry Wishnow came down from Marble- For WRC's save -the -babies campaign, he lined up head, Mass., to talk about the business he's in, I The March of Dimes and Blue Cross/Blue Shield; for confessed to some incredulity. He runs a company WCVB's move against prejudice, he pulled in the specializing in public-service campaigns for local TV Anti -Defamation League, the Boston Civil Rights stations. With broadcasting largely deregulated and Coalition and the Shawmut Banks. With all the part- stations relatively free from worry about license ners working together promotionally, the campaigns renewals, selling public-service counsel to local own- are assured of making an impact. ers would seem to rank on the futility scale with the Word is out in the industry that community involve- legendary refrigerator salesman to the Eskimos. ment is good business. So it was fitting that the by Les Brown But Wishnow said business is pretty terrific, and I National Association of Broadcasters gave this year's had to believe him when he described his current pro- Distinguished Service Award to a retired broadcaster jects. For WRC-TV in Washington he created "Beau- who epitomizes the public-spirited station operator: tiful Babies," a long -run- Martin Umansky of KAKE ning effort to reduce the Wichita. I blush to write exceptionally high rate of about him because he's one infant death in the capital of my best friends. by promoting prenatal care I met him 25 years ago to expectant mothers. For when an editor sent me to Getting WCVB-TV in Boston the Wichita to find out why Wishnow Group developed ABC was number one there involved "A World of Difference," a while running a miserable campaign against race prej- third nationally.It was with the udice, aimed principally at hard not to love Umansky. community is children. It has since been Heseemedpersonally syndicated to 30 TV mar- involved in every station the way to kets, including Philadel- function and in everything beat the new phia, Detroit and Miami, going onintown. He and recently won a Pea- worked with numerous players who body Award for WCVB. civic organizations and was Wishnow is trading on business manager of the think the the industry's new wisdom. community theater. He game is Just when every station is caredespeciallyabout freetoconcentrate on KAKE's news operations all about building profits by cuttingMartin Umansky in 1968. His hallmark: local involvement. and the Kansas political entertainment. costs, alert broadcasters campaigns. Early on, have found that profits flow fastest to stations that are Umansky was determined to be first with the election super -citizens of the community. The best way to returns, and his became the station to watch on elec- achieve that kind of corporate sainthood is with what tion nights. This preceded the industry's discovery Wishnow calls "activist public service." that winning in local news almost invariably meant Most stations provide passive public service-spot winning the whole ball game. I learned from that first announcements for social -service agencies. The activ- visit in 1962 that the station might well be a more ist kind differs by putting the station at the cam- important brand name than the network. paign's center, as its originator and chief promoter. There's no point in detailing Umansky's local This conveys the message that the station so cares achievements here; it suffices that at his 70th -birth- about the community that it takes on and helps solve day surprise party last year, every prominent Wichita some big problems. Wishnow also refers to it as "pro- person attended with abundant affection. motional public service." I call it hype in a good cause. For years, Umansky preached the gospel of "local- The concept is by no means a Wishnow exclusive. ism" to the industry with unflagging passion, even The Gannett and Hearst TV groups are on to it today when fellow broadcasters tuned him out as a cockeyed and believe in spending to establish their stations as zealot. Fortunately he's lived to be a prophet with leaders in local public affairs, knowing it will help honor. Everything Umansky upheld as a professional make them leaders in local news and ultimately in rev- broadcaster is now the common wisdom. Getting enues. Such exemplary locally owned stations as involved with the community in a big way is the way WCCO in Minneapolis and KING in Seattle have long to beat the new players who think the game is all been champions of community involvement. And of about entertainment. course the Group W stations are still at it, having Odds are there will be more Jerry Wishnows plying more or less invented public -service -on -a -grand -scale their strange trade and, it's to be hoped, many more more than 30 years ago. Wishnow is a product of the Martin Umanskys. And this will add up to the most Group W system; he went off on his own in 1974. positive trend in television since the great documen-

Once he identifies the community problem to tackle, tary binge that followed the quiz -show scandals.

26 CHANNELS / JULY/AUGUST 1987 - _

Issues of the Information Age: Thewaybeyond Babel.

Imagine trying build a railroad system if every locomotive manufacturer used a different track gauge. Every local stretch of railroad had its own code of signals. And in order to ride a train, you needed to know the gauges and the signals and the switching procedures and the route and the conductor's process, and act on informa- information in any form- odd pronunciation of the tion automatically. conversation, data, images, station names. AT&T is working with text-as easily as they make a The business of moving national, international, and phone call today. and managing information is industry -wide organizations The science is here now. in a similar state today. to set up comprehensive, The technology is coming Machines can't always talk to international standards to be along rapidly. But only with each other. Proprietary sys- shared by everyone who uses compatibility will the barriers tems and networks abound, and provides information to Telecommunity recede. with suppliers often jockey- technology. We think it's time Telecommunity is our goal. ing to make theirs the de for everyone in our industry Technology is our means: facto standard. The enormous to commit to developing firm, We're committed to leading potential of the Information far-reaching standards. The the way. Age is being dissipated by goal: to provide our customers incompatibility. with maximum flexibility and The solution, as we see it, is utility. Then, they can decide common standards which how and with whom to work. would allow electronic systems We foresee a time when the in one or many locations to promise of the Information work together. People will be Age will be realized. People ..-11Mh. informed and in control, will participate in a world- while the systems exchange, wide Telecommunity through a vast, global network of networks, the merging of communications and computers. ©1987 ARC They'll be able to handle AT&T TE BUSINESS SIDE sionals needled Channels recently for suggesting that SO MUCH FOR there's a shortage of future management talent in net- THE DOG DAYS work television. With word now that much of the layer of management just below NBC president Bob Several remarkable developments in the media Wright is likely to leave next year, and with the obvi- business over the summer haven't quite gotten the ous teetering of the top broadcast management teams play they deserve because of reporters' vacations, at ABC and CBS, the difficulty of imagining who will the return of the Beverly Hills Cop and the sagas of run the networks in 1990 must be terrifying to Welch, Fawn and Donna and Jim and Tammy. Murphy and Tisch. It also helps explain why Larry While one might suggest that this column ought to Tisch had such a tough time last year coming up with join others in summer hiatus, there still seem to be names of qualified, experienced executives to run some big stories in the industry that aren't getting CBS and why he is said to favor his own talented enough attention. though young sons to succeed the Tisch/Paley regime. by Merrill 1) News confusion. Doesn't it seem we're at the Isn't it farfetched to imagine the entire broadcasting Brown point where one network's evening newscast is pre- leadership, particularly the network brass at CBS and cisely like the others', or that at least that's the ABC, surviving the 1987-88 season unless they show a increasing perception of marked gain in perform- the American people? Isn't ance? Guessing about that there now total ratings par- succession begins this fall. ity among the three broad- At New York cocktail casts, and shouldn't the parties a while back a popu- peopleresponsiblefor lar pastime was to list quali- these newscasts try to fied candidates from within One of the break out of the pack and the media business who unpleasant avoid formula formats, pre- might run CBS. It was not dictable news judgments an easy exercise and the whispers on and so forth? Don't the serious talk usually started scandals of the Reagan and stopped with Gannett's Broadcast years-in government, bus- and Row is the iness, and all around us- MCA's Sid Sheinberg, with suggest that it's time to other names like Terry fact that in revive TV investigative Elkes, Bob Pittman, Nick cabled journalism? It would be sat- Nicholas and Mike Eisner isfying to more than a few on the next tier. homes, Big viewers to see the net- 4) Wired. The explosion in works, for a change, copy cable -systemacquisition Three net- the enterprising reporting prices absolutely boggles the mind. With Jack Kent work shares of their local -affiliate news ft) and James with Dad, Larry. colleagues and go chaseNext in line at CBS? Andrew (le Cooke's McCaw and First fell to under tough stories, giving the networks the capability to Carolina deals, each apparently worth $2,000 a sub- 50 percent lead their newscasts with stories other than such scriber and well over 13 times cash flow; the growing packaged non-events as the Venice parlay. talk of foreign-particularly Japanese-money look- during parts 2) More network blues. If you're a network pro- ing hard at the cable industry; and Time Inc.'s now grammer, salesperson, planner or corporate type, saying it's seriously moving into a system -acquisition of April. shouldn't you be awfully concerned with the audience - mode, it would appear that system prices might be share numbers now being analyzed from the spring? pushed even higher. Although it's hard to imagine One of the unpleasant whispers that not too many anyone making a bad cable -system acquisition, the Broadcast Row types want to talk about is the fact escalation in activity and the steep price rise is likely that in cabled homes, Big Three network shares fell to to lead some newcomer to leverage a cable acquisition under 50 percent during parts of April. That's right, to the gills, run into trouble and bring some sanity below 50 percent. I don't spend all my time wandering back to the marketplace. network corridors, but I don't sense worry when I do. Another risk: If the investment people working on Is that why NBC officials are considering spinning the these acquisitions are basing the deals on holding the network off from GE, or at least bringing in equity property for a few years, they have to be assuming partners in order to spread the growing risk? There significant increases in subscriber penetration, which, doesn't seem to be any evidence in the fall season of course, would be a good thing for cable. plans that suggests blockbuster trends-shows or But if that development, no sure thing, doesn't take epic events that will stop the erosion. Isn't it time for place, the consumer's monthly bills will have to soar, the networks to spend more, not less, on program- multiple tiering will increase, subscribers will balk ming to lure people back and, most importantly, to and the political risks for the industry will become establish among viewers, especially young ones, the substantial. Cable industry leadership ought to keep a significant place in American lives for national televi- careful watch on the systems being bought by the sion networks? Cookes of the world. Somebody is going to have to foot

3) Brain drain redux. A couple of television profes- the bill.

28 CHANNELS / JULY/AUGUST 1987 These Securities were offered and sold outside the United States. This announcement appears as a matter of record only.

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June, 1987

Every day children reach out to master new skills, to grasp new ideas. But without adult help and encouragement, such accomplishments are beyond a child's reach. That's why Group Ws WBZ-TV in Boston created For Kids' Sake. We're reaching out to the next generation with a wide variety of special programs and community events. We're not alone. Over 100 stations are using For Kids' Sake to give children and families a boost into the future. We're grateful for such wide acceptance, and for the many honors won by For Kids' Sake, including the Emmy. Gabriel, Peabody and most recently, the NAB Service to Children award. Our thanks to the many who join us in reaching for a better future, For Kids' Sake. WBZ-TU 4*GH UP Where Television Comes To Life. NETWORK TV

Looser,Yes, But Still The Deans of Discipline

by L.J. Davis

A quarter of the networks' censors have been laid off, and many of their taboos have fallen. CBS has even trusted some of its programming executives to wield the blue pencil part-time. Has national television simply outgrown its lifelong need for standards and practices?

Once shame was invented, Broadcast spending more than $15 million a year and Standards and Practices was inevitable. have deployed 150 professionals. They cannot -Melvin S. Heller, M.D., clinical professor for a moment be mistaken for profit centers, of psychology at Temple University and for S&P does not sow and neither does it reap; consultant to ABC it censors. Only the news is exempt from its oversight. At a time of conspicuous austerity "We examine every single commercial," said a at the three major networks, seemingly thunderstruck Robert Wright, when even the once -sacred news early in his tenure as president of NBC. divisions are not exempt from the "Every single piece of film that goes on the air budget -cutter's ax, one unit is examined. It goes through our compliance or found in each company stands out from the oth- Banned: using an review groups. I didn't think the networks still did that. They do." ers as an unloved example of corporate bloat: explosive special -effects the division of standards and practices. The In the network world, standards and prac- three S&P operations together have been squib to simulate a bullet tices remains the dean of discipline, and almost blowing off somebody's no one likes the dean. Until recently, however, L.J. Davis' last article for Channels was a pro- head, on ABC-or for any the censors have never found it so difficult to file of NBC president Robert Wright. purpose, on CBS. justify their continued employment, and the

32 CHANNELS / JULY/AUGUST 1987 The lastemasters: NBC's Daniels, CBS's Dessart and ABC's Wurtzel.

networks' newfound frugality is not the only Off-limits: making "in" program development v.p. "We used to put a reason. Incest, impotence, homosexuality and jokes about drugs, or lot of 'fucks' and 'hells' in the script as distrac- abortion have become almost commonplace suggesting that tions," he says. "Now the networks are more prime time fare, and network commercials are promiscuous sex is sociallytrusting of writers and producers." giving viewers unmistakable (though certifia- The viewer no less than the new ownership bly nontitillating) glimpses of Playtex Cross acceptable, on ABC. could easily assume that S&P divisions with- Your Heart brassieres on actual bare -shoul- ered and fell off the organizational charts some dered women rather than mysteriously empty years ago. In fact, they survive, and even the and levitating in midair. markedly racier Fox Broadcasting network "There's virtually nothing any of the net- has hired an S&P adviser, Don Bay, a onetime works will prevent you from writing about," NBC and ABC West Coast censor. But the says producer Steven Bochco, who has warred three older networks' S&P divisions survive with the censors for years over Hill Street only in reduced circumstances: Altogether Blues and other shows. When S&P takes issue they now employ about 120 professionals- with him, Bochco says, it's over the choice of down 25 percent within a year. And in what ,==cr words he puts into actors' mouths. The climate may very well be a harbinger of the future, tis positively refreshing to independent pro- Laurence Tisch's CBS has reduced the producer Peter Greenberg, a former Paramount gram -practices workload, spot-checking only

CHANNELS / JULY/AUGUST 1987 33 20 percent of game -show episodes, for eating the limits of acceptability, as did a cir- instance, and cutting its S&P staff from 80 to cumstance that is not often taken into account 32 warm bodies over the past two years. in the heated atmosphere surrounding S&P: to wit, while many censors are infuriating nit- bservers, including some at the pickers, many are also friends of topical drama network, speculate that CBS is and the creative process. slowly abandoning censorship alto- "We did a lot of things that the affiliates gether, a notion that George Des- hated, but they got used to it," says one former sart, the new v.p. in charge of pro- censor. "I remember going to an affiliates' 0grams and practices, vigorously denies. The meeting where everybody was after me staff, he says, will continue to scrutinize chil- because of a scene we'd let pass in a theatrical dren's shows, dramas based on fact, theatrical movie, but I found, as the years went on, the films, game shows and commercials, and will affiliates said less and less, until last year there depart from past practice most significantly in were no comments at all. The audience and the oversight of series: "It seems to us that it's affiliates have been conditioned by cable, and unnecessary to have an editor full time on the they no longer expect the sanitizing that used set of a show like Newhart, which has a very to take place." clearly defined set of parameters. The producers know the things that will raise a red Network programs have typically flag and they will send them to us for consulta- Actively discouraged: been scrubbed so thoroughly tion. We will maintain contact through the first having characters consume that they shine from every ten screen episodes of a new series, but once angle. Unlike legitimate theater the content and characters have been estab- alcohol when they could or publishing houses, with their lished, the day-to-day monitoring will be done just as easily be tossing narrower audiences, the networks strive to by the programming department." back club sodas, on ABC. internalize all of the diverse, often intense pre- This puts two hats on the heads of the net- occupations of American society. They are work's Hollywood program executives, and made timid by the very breadth of the audi- some find the situation awkward-playing ence a network needs to reach. For example, both good cop and bad cop with the producers though polls show that-in the seventh year of they oversee. A plot contrivance in CBS' The the AIDS epidemic -60 percent of Americans Young and the Restless, for instance, recently favor the broadcast of condom commercials, had program executive Bob Bowden on the the networks have refused to rescind their set, altering a prop-carefully applying a bans, nevertheless permitting the big -city sta- Band-Aid to the centerfold nude photo of a tions they own to decide individually whether male character in the soap. Suggesting that to accept ads emphasizing disease prevention. S&P could entrust such duties to program "You have to remember that we are a surro- executives would have qualified as heresy as gate for 200 affiliates who know their markets recently as a year ago. better than we do," says Alan Wurtzel, ABC's S&P has had a clear sense of its mission: safe- vice president for broadcast standards and guarding the network's external relations practices. The network can, in its own pro- with advertisers, affiliates, viewers and, ulti- gramming, handle issues as controversial as mately, the Federal Communications Commis- birth control "in depth and with balance," he sion. "My job," one former censor says plainly, says, but in commercials some advertisers "Was to protect the licenses of our owned -and - would try to advocate a position, which ABC operated stations when they came up for could not permit. renewal. Period." Over the years the censors Still, the networks' search for balance and have drawn and cautiously redrawn a line moderation can sometimes produce results across the moral landscape-the line between that are a trifle odd. "We once wanted to dis- what is permitted on TV and what is not. It is cuss the five commonly known methods of only a byproduct of the industry's self-defense, birth control on the show," says Bruce but it has become perhaps the most widely rec- Paltrow, executive producer of NBC's St. ognized, if not the most profound, value sys- Elsewhere. "They negotiated it down to three. tem in this secular country. Now CBS' censors It's the capriciousness of the system that gets have surrendered supervision of most prime to you," he says. At CBS, Barney Rosenzweig time entertainment to the programming was persuaded to trim the number of gang rap- department, whose first allegiance is to the ists in one episode from seven to four. "It beats network's ratings, not to prudence. me why four is better than seven," he says, "but there you are." Network television's liberaliza- "The crazy thing is, you never know what tion began in earnest in the Taboo: letting a comedian they're going to do," says Chris Elliott, who 1960s when NBC, then the per- make a joke about writes for NBC's Late Night with David Let- ennial second -place network but terman. "It depends on what kind of a day "McNuggets" and grab they're having. Once we had somebody call a also the innovator, first intro- his crotch, on NBC, though duced a regular weekly series of theatrical guy an 'asshole' on tape. You'd think they'd films. And when series like All in the Family such has happened on the blip the last half of the word. Instead, they became network successes, their producers Fox network. blipped the first half. You had a guy calling gained leverage, allowing them to make more another guy a 'hole' on network television. Try outspoken programs. The spread of cable, with and figure it." its uncensored films, also played a role in relo- S&P executives concede that their review

34 CHANNELS / JULY/AUGUST 1987 process is subjective, but deny that they fly Nor are all producers or all shows created blind. "We do our little tests," says an NBC equal, no matter what time period they censor. Ordinarily, when Don Johnson's cop occupy. "It's on the established series like St. character takes severe exception to something Elsewhere where the audience has come to on Miami Vice, NBC lets him say that it expect something a little different, that we "sucks eggs." But a few months ago, when the might allow the limits to be pushed out a bit," Golden Girls' story had the eldest, Sofia, says Ralph Daniels, NBC's v.p. of broadcast searching her soul after a heart attack, she was standards. But even the producer of an early - allowed to use the original expression experi- evening sitcom, Gary David Goldberg, can't mentally in a remark to Bea Arthur. "You think of a situation he'd consider using in Fam- know, Dorothy," she said, "death sucks." The ily Ties that would run afoul of Daniels. "It scene ended, the commercial came up and goes back to Grant Tinker's attitude, which is within days hundreds of complaints had come `We trust these people-it's their show and we in, instead of the usual 20 or 30. "Then," says trust them.' " the censor, "you know you've used a word Beyond the pale: showing A large and vocal faction of the creative com- Middle America is not ready for." munity has seldom known harmony with S&P, ABC, where the scientific method is much in black maids, or gangsters of course. "Around the network, Al Schneider vogue, has devised a more rigorous decision - with Italian names, or is called the Pope, but not to his face," says an making tool called the Incident Classification effeminate hairdressers, angry producer, referring to the scholarly and Analysis Form, used to identify unaccept- on ABC, which ABC v.p. for policy and standards to whom able levels of rough-and-tumble. A similar sys- opposes stereotyping. Alan Wurtzel reports. "Why should he have tem, devised by George Gerbner, dean of the that much power? He takes the position that Annenberg School of Communications at the Whoa!: daiming in a everybody in America believes everything University of Pennsylvania, once rated commercial, on CBS, that they see." Shields and Yarnell, a slapstick comedy show, your brand of skin cream as one of the most violent shows on TV; also The network censors began to gain ranking high was I Dream of Jeannie, whichprevents aging (though it's in power 50 years ago, when it was the censors had already subdued by decreeing okay to say it makes skin all much simpler. In the days of sin- that Barbara Eden's navel be filled in. The flaw soft and young -looking). gle -sponsor network radio pro- in Gerbner's system was that it couldn't distin- grams, the policeman's lot was a guish between parodic and serious violence; happy one. The sponsor patrolled its own pro- but ABC believes it has licked the problem by grams and the network's department of conti- devising a system of categories. Locking a nuity acceptance concentrated its attention on character in the trunk of a car, for example, the taste and veracity of commercials. As they earns a check mark as a weapons assault. turned their attention to TV, the censors' rule- Locking him in the passenger compartment, book grew rule by rule. To head off govern- however, comes under the heading of confine- mental regulation, in 1952, the National Asso- ment. ciation of Broadcasters gave the industry its Even so, the human factor-the opinions and widely adopted Television Code, a series of hang-ups of the individual censors-continues mostly vague guidelines covering morality and to dominate and confuse the process in ways violence, as well as the amount of advertising that producers sometimes find to be irrational. to be aired. "Alice Henderson, the former head censor at "Things began to change with the quiz show CBS, is a sophisticated and intelligent scandals between 1958 and 1960 and a growing woman," says a departed underling. "But governmental concern over televised vio- Alice simply would not tolerate the words lence-the Kefauver hearings, the Eisenho- `doing it' as a euphemism for the sex act. Then wer commission and so forth," says the vet- George Dessart replaced her, and all of a sud- eran Al Schneider. "Then in the 1960s you had den 'doing it' was all right." the Newton Minows at the FCC trying to define the public interest and concerned with Compounding the confusion is the fact consumerism as it related to commercials, that not all time periods are created especially substantiation of claims and plugola. equal. For example, there is a great It was in the '60s that standards and practices deal of mostly adulterous sex on began to come into its own." daytime soap operas -2.19 acts an Then, in 1974, following a simply tremen- hour on CBS, according to one recent survey, dous to-do over an NBC movie, Born Inno- 2.18 per hour on ABC and 1.64 on NBC (which cent, in which a girl was graphically raped with may help explain NBC's lagging daytime rat- a mop handle, the FCC and broadcasters infor- ings). But the afternoon indiscretions continue mally established Family Viewing Time every year round on the apparent assumption that evening until 9 Eastern time. "What we're children take no vacations, or that they watch Verboten: showing a live trying to do," Richard Kirschner, program no television when they do. Sex and other so- model stripped down to executive at CBS, told a group of outraged called "mature" themes then fade from the her brassiere in this writers from MTM, "is not offend the most networks until 9 o'clock in the East and 8 Playtex commercial (or uptight parent that we can imagine watching o'clock in the Midwest, apparently on the any other ad) before 9 A.M. with his children." Ironically, the televised assumption that children's bedtime has mayhem did not abate in the slightest but sim- arrived, though one curious researcher discov- or after 4 P.M., on NBC. ply migrated to the later evening hours, which ered that kids in the heartland actually stay up became, in Variety's memorable phrase, a later than those on the seaboard. "corridor of gore."

CHANNELS / JULY/AUGUST 1987 35 For 11 million people who thougl

Millions of people of all ages have said no to true incremental sales from previously hard -to - pay television primarily because of its program sell segments. Purely and simply, Festival moti- content. In fact, these content objectors repre- vates both cableandpay rejecters to subscribe. sent about 1 of every 4 resisters in your system. More than a year of extensive test marketing But now, when they say "no," you can say proved that Festival expands the pay -TV "Festival:' It's the new pay -TV service that's business by reaching the resisters: tested, targeted, and ready to help you tap this enormous audience. 50% of Festival subscribers are contentobjec- tors under 50-the other half comes from the With high -quality, carefully selected program- hard -to -sell 50 + age group. ming aimed at adults-but definitely suitable Festival is proving to be virtually spin -proof in for family viewing, too-Festivargenerates every system in which it was tested. C 1987 Home Box Office, In,\ II rlehts reserved. "Service mark of Home Box Office, I

pm eft r eft

ra pm

pm pm it they didn't want paytelevision.

33% of Festival subscribers have never had offensive to viewers with more traditional any premium service-and 13% have never tastes and values. It's programming carefully had basic cable. chosen for its distinctive target audience, so Although Festival is designed as a single -pay that Festival entertainment is quality entertain- service, it offers an important bonus when it ment that's always welcomed home. comes to dual -pay rejecters, too-achieving So why not call today and find out why Festival buy rates as high as 15% in Disney -only house- is really something to celebrate. holds. (And nearly 1 of every 3 Disney subs today are single -pays.) Your HBO regional representative is ready to help you turn your share of those millions of A big reason for this performance is Festival's content objectors into Festival subscribers. unique programming lineup-first-rate fare that's consistently entertaining, yet never Festival- The New Way to Grow Pay Television Family Viewing Time lasted but a few years, do a lot of research and we insist that the and the NAB discontinued its television code entire story be told. I am not in the business of in 1982 after the Justice Department found its keeping shows off the air; I am in the business advertising provisions in violation of antitrust of putting them on the air in conformity with law, but by then S&P was firmly entrenched. our guidelines. We have a policy that says, bas- Instead of putting the censors out of work, the ically, 'exposition not advocacy.' We want bal- great liberalization in permissible subject mat- anced views on our network, but our critics ter that took place in the 1970s gave the cen- also forget that we are required to have them," sors an important new set of constituencies. says Wurtzel. "The government's Fairness "In 1972, you had Maude's abortion, which Doctrine requires it." mobilized the pro -life people," says Kathryn The critics are not mollified. "Sure, they'll Montgomery, a UCLA academic who is pre- discuss controversial subjects when they're paring a book on television and its pressure safe," replies Lila Garrett, a veteran script- groups. In 1974 the rape on Born Innocent writer. "For example, wife abuse. They've dis- shocked many a viewer, and in 1980 NBC put covered the women's revolution now that it's on Beulah Land, a miniseries about the ante- practically over-that's a nice safe topic. With bellum South that outraged blacks. The net- Proscribed: showing all this insistence on balance, television works found themselves under assault by a anyone practicing presents a problem, suggests no solution and bewildering variety of pressure groups. "They assigns no blame." There's bitterness in Gar- had the law in back of them, and they were able hypnotism on NBC. rett's complaint. "The way to write for televi- to file petitions against the licenses of the (The order reportedly sion," she says, "is to make a lot of noise and owned -and -operated stations," says Mont- came down after David make sure it's about nothing." gomery. "That frightened the networks badly. Sarnoff awoke from a Essentially, they institutionalized the pres- trance in a fury.) Sometimes, the censors' insistence on sure groups and made them part of the deci- balance-on presenting a difficult sion -making process." The liaison assignment issue without offending anyone- fell to S&P. Out of bounds: involving achieves results that border on the the tongue in a kiss, or bizarre. "I can perfectly well see the Fach network laid on a small staff of showing actresses dazed reason for 'broadcast standards,' says promi- social scientists and consulted aca- and exhausted after an nent producer Frank von Zerneck. "But what demic specialists in sociology and orgy, on ABC. we have here is censorship pure and simple, child psychology, and each made with no appeal from their decisions no matter itself available to meet with any what they say. I did a movie for NBC called interested outside party who seemed reasona- Inappropriate: playing a Hostage Flight, about a domestic airliner that bly sane and in command of a constituency. rape scene for erotic was hijacked by a group of Arab terrorists. NBC actually formalized the practice: Since interest, or otherwise They made me change them into one French- 1979, the network and its producers have fusing sex and violence, man, one German, one Italian, one Arab and exchanged views roughly every 18 months on ABC. one Irishman-a preposterous mixed bag that with representatives from interest and ethnic made no sense whatever. In the end, the script groups-meetings that are not without effect. called for the passengers to hold a trial in the "I talked with an Arab -American gentleman manner of Twelve Angry Men, and there was at the last one," says Bruce Paltrow, no friend to be an execution over international waters. of censorship. "He wanted to know why we Instead, they made us have a gun go off by acci- always portray his people as nothing but ter- dent. I had no choice. It was either make the rorists or tycoons. He had a point." changes or drop the project." When the point doesn't get through to pro- The networks' censors remain on the job ducers, S&P, as defender of audience sensibili- today, even at CBS, when the programs at ties, steps in. "I think, given the tension hand are ticklish dramas like von Zerneck's. between S&P and the creative community, we Surely they will sin again on many occasions end up with the best possible product," says and will shine on others-forcing a producer or ABC's Wurtzel. "We'd have a lot of nerve if writer to think. When the program at hand is a we tried to tell a Tennessee Williams how to bread-and-butter CBS series, however, there write a play, but it's a lot different when you're will be no overseer wearing the S&P hat full trying to crank out 22 episodes of a program. time. With only the emissaries of the program- As time goes on and pressure mounts-and ming department on guard, it's easy to imag- remember, there's only so much talent out ine a new bust -and -boom cycle for the net- there-everybody goes for the cheap joke and works' censors. the easy way out, and problems like stereotyp- If the networks' programming departments ing and excessive violence develop." have justly been viewed as the in-house cham- Television has been criticized for oversimpli- pions of creative freedom, they're also known fication since its beginnings, and it is precisely for a long and deplorable infatuation with vio- here, on the issue of quality and depth, that at lence. "Violence," says one former censor, "is least some censors believe they have a genuine the industrial effluent of the television busi- role to play. "If anything, I would say that we ness, the toxic waste that gets past the pollu- add complexity," insists Wurtzel. "If you have tion -control device. And at CBS the pollution - a program that advocates a single point of control device has just gone onto a part-time view, it's simplistic, by its very nature. Aside schedule. The whole thing will come tumbling from such issues as basic human rights, there down at CBS the moment they try something

are very few good-guy/bad-guy situations. We that the public will not accept."

38 CHANNELS / JULY/AUGUST 1987 Viacom Inc. (formerly known as Arsenal Holdings, Inc.)

A corporation formed by National Amusements, Inc.

has acquired through merger VIACOM INTERNATIONAL INC.

We acted as financial advisor to National Amusements, Inc. in this transaction,provided a forward underwriting commitment for theSenior Subordinated Discount Debentures, advised on and executed a $1.5 billion hedging program as to the senior bank debt and assisted in the negotiations.

Merrill Lynch Capital Markets

June 10, 1987

All of these securities having been sold, this announcement appears as a matter of record only.

NEW ISSUE

$399,454,000 Arsenal Acquiring Corp. (which has been merged with and into VIACOM INTERNATIONAL INC.) 143/4% Senior Subordinated Discount Debentures due 2002

Merrill Lynch Capital Markets COMPANIES Grant's Back aSz Gannett's The nation's largest newspaper group steps up its effort to become Got Him a major presence in television. While hunting for news-chief executive John Curley calls gave a lot of us more opportunity than we new stations, it it brevity-is the multimedia company's might have had earlier." most widely known hallmark. But Gan- Curley, a former Gannett journalist is also building a nett's indisputable success, as owner of and editor who became a friend and favor- the largest -circulation newspaper group, ite of chairman Allen Neuharth, was head production studio, largest outdoor advertising company and of Gannett News Service when it won a broadcaster to 10.1 percent of the nation, Pulitzer, the first time a news service had with Grant Tinker suggests that it has perfectly crafted its done so. He also served as USAToday's print products for the TV -bred genera- first editor. But he was still a mildly sur- in charge. tion with a short attention span.Itsaudi- prising choice for his current role, espe- ence, certainly, and perhapstheaudience. cially so considering the respect accorded And now, just four years after the crea- longtime chief financial officer and com- by Jeri Baker tion of USAToday,and with the same pany vice chairman Doug McCorkindale, enterprise that prompted its launch in a point man on Gannett's many acquisi- skeptical climate, Gannett has entered tions and formerly general counsel. The Gannett Company is television production as 40 percent part- Curley himself was surprised when very, very rich. ner with Grant Tinker in GTG Entertain- Neuharth, at a board of directors' meet- Forbes,on whose 500 list ment. The undertaking could provide the ing last year, named him chief executive it ranks 138th, predicts its company with a cornerstone in television officer.Neuharth's ownpredecessor, Paul 1987 cash flow will be the as solid and as visible as USAToday.Tin- Miller, stepped aside just before retiring, media's largest. It has the ker comes as close to guaranteeing success and Neuharth decided he wanted a highest market value-now almost $8 bil- as anyone can, and his luster may allow lengthier, more graceful transition the lion-of any publicly owned, diversified Gannett to partake of what all its execu- next time around. By giving up his CEO media company. It spent nearly $1 billion tives refer to longingly as his "class." title to Curley, he has made it a virtual in 1986 to add to newspaper and broad- Not that Gannett executives aren't certainty that Curley will follow him as cast holdings, which now include 93 dai- highly regarded on Madison Avenue and chairman when Neuharth retires in 1989. lies, 39 nondailies, eight TV and 18 radio Wall Street. Shearson Lehman Bros.' Curley is credited with a thorough stations. Even so, it suffered only a slight Alan Kassan and Oppenheimer's Dennis understandingof office politics and can be slowdown in earnings, after 19 years of McAlpine apply superlatives to Gan- a deft representative in company forums. consistent gains. Its logo is a "G" about to nett's newspaper management, and He is also quick and lucid, characteristics eclipse the globe. assess its broadcast management as that have no doubt contributed to his What the company covets, however, is "good." And it is clear that a new, youth- stand -out role at Gannett. Grant Tinker, respect, and that has proven elusive. ful generation has come to the helm. "It's a longtime critic of corporate manne- USAToday,the flamboyant four-color because of our growth," says the 48 -year - quins, lavishes praise on his Gannett suit- daily with a cheerful, cursory approach to old president and CEO, John Curley. "It ors, and adds, "And I'm beginning to see

40 CHANNELS / JULY/AUGUST 1987 The GTG partiers at a quiet Culver Studios soundstage (from the lett) Gannett vice chairman Don McCorkindale. Gannett broadcasting president and CEO Cecil Walker. Ganrett president and CEO John Curley and GIG Entertainment president Grant Tinker_

that John Curley isn't just another tall timer, and said, "You're the best recep- discoveredwhat community -affairs guy in a suit, either." tionist I've ever dealt with and I'm glad efforts could do to enhance its competi- Curley is also a unique judge of talent, to be working with you." The story, Bon- tive stature and, as Cecil Walker puts it, as is clear from the startling choice he ner recalls, spread like wildfire. "to have our stations identified as good made to head the company's broadcast Early in 1987, Walker, 50, was named corporate citizens." division: Cecil Walker, plucked from the president of the broadcast division, which From its 1906 founding, the company executive vice president/controller slot by then included Gannett's languishing grew its newspaper business by acquir- at Gannett's KUSA-TV in Denver. radio stations. The boyish -looking, 22 - ing small, monopoly properties, turning According to former employee Tom Bon- year Gannett veteran travels strenu- them a matching shade of beige and col- ner, now executive v.p. at KARK-TV, ously, in keeping with his commitment lecting nearly inevitable profits. Alan Little Rock, Curley determined that "to have a physical presence at the sta- Neuharth said in 1985 that the company "people weren't being stroked enough." tions and industry meetings." He also went into the black "in the minor Curley knew Walker was renowned for brings together station managers to leagues" because it had "no guts" for the his people skills and brought him in to be "present their missions and their goals" big media deals. acting president and general manager of and calls monthly meetings on commu- During this decade, however, Gannett WXIA in Atlanta, broadcast headquar- nity -affairs activities. has acquired stations in the major-league ters until the move to Washington, D.C., It wasn't until the '80s, when it entered markets, along with executives who were is complete sometime late this year. His broadcasting in a major way, that Gan- broadcast veterans. (Never able to find first day on the job, Walker went up to nett confronted the competition it had good broadcast management, Gannett the receptionist, a universally loved long - evaded in one -newspaper towns. It also had sold all its stations except WHEC,

CHANNELS / JULY/AUGUST 1987 41 which, uncharacteristically, was thriving D.C. market for its 5, 6, and 11 P.M., its in Rochester, Gannett's earliest head- noon and its 6:30 A.M. newscasts. Its Sun- quarters.) In 1979, it completed a $372 day morning Capital Edition is number million merger with Karl Eller's Com- one in its time period among affiliate sta- bined Communications, a station -group tions. So is 22/26, another Sunday morn- and outdoor -advertising company, and in ing locally produced public -affairs show. 1986, it acquired the Detroit -based Eve- Ones and twos are scattered liberally by ning News Association, a newspaper and A.C. Nielsen among the seven other Gan- broadcast company, for $717 million. nett stations' rankings in local news and The acquisition of Combined provided public -affairs productions. The one Gan- Gannett with stations in Phoenix, `We're in the nett independent, WLVI in Boston, looks Atlanta, Denver and Oklahoma City, as weak against its siblings at number four, well as Al Flanaghan, who became head but beats the market's other independ- of Gannett Broadcasting. ENA brought business always to ents handily. KPNX in Phoenix was it Austin and its plum in Washington, be at the top. always strong, so Gannett spent to build D.C., WDVM, which was renamed a char- plant and equipment, leaving program- acteristically patriotic WUSA and is ming alone. "The nice thing about Gan- sometimes referred to internally as "The We're a news and nett is that it provides resources to do Nation's Station," as USA Today is "The information quality news, but doesn't overrule us," Nation's Newspaper." says Perry Boxx, news director at KOCO company. We want in Oklahoma City. "We're the only sta- As a result of its acquisition tion with a Washington bureau that cov- binge, Gannett's long- ers local news." Says KPNX's Bill Nich- term debt at year-end to be a news and ols, "Gannett leaves us separate but 1986 was $1.2 billion, 42 information leader.' allowed us to grow much faster than percent of capital and up other stations here." steeply from 1985's $492 WXIA in Atlanta was at the other end million. But CFO McCorkindale projects lagged in the first quarter of 1987, says of the spectrum when Gannett purchased a decline to $1 billion in debt -33 percent Curley, with TV results erratic and radio it in 1979. It needed huge amounts of of capital, still above its traditional 20 still showing a decline. management attention and spending. percent-by the end of 1987, "provided In the markets in which it now broad- Thus it was the first in the market to get a there are no acquisitions, and no one can casts, Gannett has contrived two tacks: If news helicopter, and it lured news per- ever be too sure about that with this com- a new property's news operation is weak, sonalities from competitors with breath- pany." If not, he says, Gannett could the parent spends lavishly to shore it up. taking increases in salaries. " 'We're return to the 14 percent annual earnings And it promotes the station as the one going to be number one. Don't let's quib- gains it averaged for the last 10 years. that solves community problems. The ble about how much it costs,' seemed the Among other things on the acquisition selectivity among strategies is the major motto," says one former employee. list are four more TV stations, to bring difference between Gannett's manage- Walker put it with more finesse: "We're Gannett to its FCC -permitted 12. But ment of newspapers and its management in the business always to be at the top. that may not happen soon. Says Walker, of TV stations. Newspapers, with the We're a news and information company. "We've looked at everything available, exception of USA Today, get a thorough We want to be a news and information but prices have moved up too fast. We're going-over that makes them so recogniz- leader." not interested in dog properties and ably siblings that they could only be part we're not at all desperate. We've never of the Gannett family. In contrast to its owadays,WXIAis thought in terms of broadcasting being x lean newspaper operations, stations are prime time leader by a percent bigger or x percent of the com- made richer but otherwise unchanged hair and is a perfect pany on a certain timetable." (The two unless changes are obligatory. example of how Gannett ENA stations brought the Gannett To a large degree, Gannett's broadcast comes by its reputation Broadcasting component to about 13 per- tactics have succeeded. WUSA, for for community service. cent of the company's revenues, up from instance, was solid under ENA and, The Gannett Foundation, which elected 9.9 percent in 1979.) But broadcasting under Gannett, ranks number one in the Neuharth its chairman in 1986, turned 50 years old in 1985. It makes grants in com- munities served by Gannett media properties. WXIA's local evening news covers the annual fall luncheon at which 40 to FINANCIAL HIGHLIGHTS: 1985-86 AT A GLANCE 50 Foundation grantees are honored. And the station's own community -service awards are given prime time coverage

PERCENT annually. Though these eleven (for Chan- 1986 Oil 1985 CHANGE nel 11) $1,000 awards come out of the sta- 011111A tion's budget, it would be difficult to buy Operating revenues $2,801497 52,209,421 + 26.80 the kind of publicity the Foundation g V grants bring, at no cost to WXIA. Net income 276,404 253,277 + 9.1to With lukewarm broadcast operating Net income per share 1.71 1.58 + 8.2 t margins (33 percent, says Shearson's Kassan) and inexorably rising program a Long-term debt 1,201,310 491,565 + 144.4 costs, Gannett is seeking profits in pro- gramproduction. Seven months into the Total assets 3,365,903 2,313,218 +45.5 life of GTG, it is abundantly, sometimes g amusingly clear that there is not yet a master plan. Gannett knew it wasn't the

42 CHANNELS / JULY/AUGUST 1987 only suitor awaiting Tinker's triumphant V I I recessional from NBC. So minutes after he walked out of the NBC elevator for the THE GANNETT STATION PICTURE last time, freeing himself, by his own rule, to talk to potential employers, Gannett had arranged for his arrival at the V STATE CITY/STATION CHANNEL/NETWORK RANKING* Waldorf Tower to meet with Neuharth, Arizona Phoenix KPNX-TV Channel 12 -NBC #2 Curley, McCorkindale and former NBC chairman Julian Goodman, who is now a Colorado Denver KUSA-TV Channel 9 -ABC #1 Gannett board member. They offered District of Columbia Washington WUSA-TVChannel 9 -CBS #1 Tinker, as their partner, untrammeled Georgia Atlanta WXIA-TV Channel 11 -NBC #1 freedom to do as he chooses. He wanted a Channel 56 -Ind. #4 studio; they spent $24 million to buy him Massachusetts Boston WLVI-1V Laird International, now called The Minnesota Minneapolis -St. Paul KARE-TV Channel 11 -NBC #2 Culver Studios, and committed at least Oklahoma Oklahoma City KOCO-TV Channel 5 -ABC #3 $15 million to refurbishing it. "They #2 didn't blink. Our deal is, it's their money Texas Austin KVUE-TV Channel 24 -ABC and my work," says Tinker, to whom Neuharth himself underscored the advantage of having a partner on the other side of the country instead of lean- Newshour; Jim Lehrer's My Heart, Your Gannett ever decided against because of ing over his shoulder. Heart; and The Heart of the Dragon the high cost. (The other is cable system Tinker brought to the deal a nonexclu- between 1981 and 1986, when the con- acquisitions. While its peers streaked sive "huge, multiseries commitment" to tract ended and was not renewed. ("It past it, gathering up properties, the com- CBS. He says his plan is to concentrate on turned out they were just too busy," says pany has considered cable too expensive, network series first, "in order to get our- McCorkindale.) ever since prices were in the $800 -per - selves up to speed." Next might be made - subscriber range, less than half what for -TV movies. "Then maybe ["but a long The two companies met they are now.) way down the road," says McCorkindale] through a small New York Despite Gannett's experience making a feature movie here or there." production house Gannett programs, a former official of the erst- There is no ambiguity about why Gan- bought to do news and infor- while production venture looks askance nett finds production attractive. As mation programming. It at GTG. "At least we fit in with the pub- Walker put it, "Shows are going to be was 1980, just after Gan- lic -affairs and news shows they were very expensive and accordingly profit- nett's Combined Communications buy, doing. This Tinker thing is entertain- able for someone. Our involvement works and Combined executive Al Flanaghan ment, a very different business." well toward a balanced portfolio, if you had become head of Gannett broadcast- Walker counters that GTG "is a little will. If we're going to be paying more as ing. Almost immediately, Gannett began different, but certainly very compatible. station owners, we have a chance now to pouring money into USA Today. (It We went into it with one of the best, who participate in that on the other side [as hasn't stopped yet. With the total invest- will be able to tie this venture into the program suppliers]." ment estimated in the hundreds of mil- businesses we're already in." Tinker, having been on both sides, fig- lions and no return, a gleeful executive Can so much depend on Grant Tinker's ures he's "a little more conversant with team announced in mid -June that the ability to do that for the far-flung Gannett the hardening network attitudes toward paper is moving into the black.) Produc- Co.? There's a sense that things are hang- cost containment. I don't want to make it tion got little attention except from ing fire until he does. Gannett has long sound as though I have some secret no Flanaghan, whose idea it was and for been intent on using its multimedia one else knows. I don't. Our intention is whom-rather like Tinker's studio-the resources to maximum advantage. USA to do affordable programs. We have to." production company had been bought. A Today itself was the product of a commit- The belligerence with which Curley co -venture with Dow Jones got as far as a tee "looking at opportunities in broad- rejects questions about the scope of Gan- pilot for a Sunday morning business casting and in newspapers," says nett's production hopes suggests he's show, but seems one of the few projects Walker. The company has rejected many heard one too many inquiries about producers with wide proposals to turn another network in the making. No such whole sections of USA Today into television material. It's now clear that they thing, he insists. Other executives echo BROADCASTING REVENUES him that if Tinker had not been free, they were waiting for someone like Tinker to would not have gone seeking a producer/ oversee that endeavor. partner right now. But Walker and 3511 Is GTG supposed to be not just a self- McCorkindale do not deny, as Curley contained revenue source, but a wider does, that such a project had been on ear- connection as well between the Gannett lieragendas.SaysMcCorkindale, businesses? "We've been interested in production for 265 The answer is best seen in Tinker's hir- several years. We did The Indomitable 233 ing of Today show executive producer Teddy Roosevelt, which won awards for 193 Steve Friedman. Friedman will head a 162 new division, GTG East, that will pro- ABC last year, for instance," and, with al duce a six -day -a -week, half-hour program partners, Rituals, a soap -opera flop, and 122 106 Small Wonder. 95 modeled on USA Today's four sections- Perhaps the most ambitious effort was 72 News, Money, Sports and Life-that will a five-year contract with MacNeil -Lehrer preview the next day's news each night. Productions. Gannett provided seed And that could mean the optimal output money to start MacNeil -Lehrer -Gannett 77 78 79 80 81 82 83 84 85 86 from a remarkable team-extraordinary (with no creative input from Gannett), talent on one side and extraordinary lar- which produced for PBS the flagship gesse on the other.

CHANNELS / JULY/AUGUST 1987 43 Eisenberg on CHANNELS

Allan J. Eisenberg Director, Advertising Sales American Television & Communications Corporation

"I would like to take this opportunity to congratulate you on your outstanding Magazine. It is one of the best trade magazines serving the communications industry' CHANNELS TO UNDERSTAND THE BUSINESS YOU HAVE TO GO THROUGH CHANNELS © 1986 Channels of Communications CABLE Rocker David Lee Roth summed up the pop music world as: "Here today, gone this afternoon." If those words seem especially accurate now, some blame it on music video's gift MTV's of fleeting stardom. Detractors long pre- dicted that the public would sour on it, and on its major purveyor, MTV: Music Television. By late 1986, it seemed they were right. Launched in 1981, the 24 -hour cable network was a smash. MTV revitalized Great Leap the record industry by giving play to acts radio ignored. Its influence led movie - makers to long -form videos such as Flashdance and Purple Rain. The working title for Miami Vice was MW Cops. But after the network went public in Backward 1984, MTV's hard rock gave way to mush, copying the Top 40 radio stations it once denigrated. Viewers, affiliates, advertisers and record companies grew per- by Fredric Dannen plexed, even hostile. Meanwhile, though MTV still hotly disputes the numbers, its Nielsens declined to half their all-time high. Before long, says the head of a big After an ill-fated attempt to record label, MTV was "totally boring. People weren't watching it anymore." broaden its appeal, the music channel has Today, MTV president Thomas Fres- gone back to its hard-rock roots ton is chastened. "There's an irresistible Fredric Dannen is writing a book on the record industry.

MTV's playlist is heavy on metal once again. New and breaking acts featured: from left, Cin- derella, Poison and the Beastie Boys. New among the V.J.s are Julie Brown (top), Carolyne Heldman and Dweezil Zappa (son of Frank, brother of Moon Unit).

we've seen them create a base for new artists. I've got to believe [MTV's] rat- Viacom frustrated Pittman by vetoing ings are going back up." diversification plans: It was already in Ad agencies also appear happy with many of the businesses he wanted to force that tells you to broaden your MTV's rock revival. Liz Russo, a DFS explore, he says, so he bailed out. Viacom appeal. When we went public we thought Dorland cable buyer, says her clients replaced him with co -presidents Freston the sky would fall if we stopped playing were alarmed that a mellow MTV "would and Robert Roganti, former head of ad Madonna and Bruce Springsteen every no longer appeal to their target audi- sales. "Viacom couldn't make a decision," two minutes. We took the soul out of the ence." Russo says that concern has evap- explains an insider. But the contest channel." Under Freston, who's been orated and that clients are also pleased appears over, with Freston the winner. calling creative shots since his ex -boss, that MTV now carries more specials, MTV cofounder Robert Pittman, quit which enable the agency to associate its Viacom's purchase didn't early this year, the channel has taken products with events and groups. come cheaply: It cost $550 some big strides backward, toward its MTV's renewed popularity must be million, more than eleven roots. welcome news to Sumner Redstone's times 1986 estimated earn- For starters, MTV dramatically cut its National Amusements, the new owner of ings, and a good $80 million playlist, all but eliminating Top 40 balla- Viacom, MTV's parent. The purchase above the network's leveraged -buyout deers such as Paul McCartney and shuf- marked the third change in ownership for offer. What's more, Warner Communica- fling them over to VH-1 (Video Hits One), MTV Networks, Inc. (MTVN includes tions, the principal seller, garnered war- aimed at an older audience. Heavy metal MTV, VH-1, Nickelodeon for children rants for Viacom stock worth an addi- is once again MTV's dominant genre. and Nick at Nite.) MTV began as the cre- tional$82million when National New or breaking artists now make up ation of Warner Amex Satellite Enter- Amusements bought. Though MTV lost about 40 percent of its playlist, versus 20 tainment, the defunct joint venture of more than $50 million in its first three percent last year, and the network Warner Communications and American years due to huge start-up costs in per- selects a weekly "hip clip" by a new act, Express. In 1984, Warner Amex sold one sonnel and equipment-it was the first which it airs in heavy rotation. Such third of MTVN to the public. The net- TV network to go stereo, for example- breaking acts as the Beastie Boys and work was then acquired by Viacom in its debts were repaid with the proceeds of Cinderella have had huge MTV play-and 1986, after an abortive attempt to go pri- its stock offering. lots of record sales. Meanwhile, live vate in a leveraged buyout. MTVN has been in the black since then. weekend programs appear every month. .1 Its only annual report, for 1984, showed There's been a staff overhaul as well. FINANCIAL pretax income of $25.4 million on reve- All five original VJs (video jockeys who nues of $109.5 million (of which MTV con- HIGHLIGHTS introduce clips) are gone. And Freston tributed 70 percent). Media analysts pro- has brought some new blood into top jected that MTVN would earn almost $50 management, notably Lee Masters, now 200 million in '86 and $65-$70 million in '87. general manager for both MTV and VH- 175 No one at MTV claims the channel will 1. Pittman, head of Quantum Media, his 160 150 grow as rapidly over the next five years own recording and music -video company, 137* as it has in the past five. But MTV has an applauds the changes: "Tom felt that, 125 intangible asset that helps explain why good or bad, everyone there from the 100 Viacom was willing to pay a big premium beginning was protecting the past." 75 $6570 to become its owner: a virtual monopoly. $50 The Freston -led reformation won 50 Other attempts to launch such a channel approval of the network's constituents. $25 $32 25 have crashed, the most dramatic being "I believe MTV is coming back in a big Ted Turner's Cable Music Channel, way, after losing the cutting edge," says which started in October 1984 and folded Nimrod Kovacs, marketing v.p. at Den- 84 85(E) 86(E) 87(E) before year end. But it had been consid- ver's United Cable. Adds Robert Buziak, im ILF INCOMENS MEIN REV UE S LL MILLIONSN ered so serious a threat that its debut, president of RCA Records U.S.: "MTV is est.) (Paul Kagan est.) announced the day before MTVN became a major factor again. In a few months, a public company, knocked an estimated

46 CHANNELS / JULY/AUGUST 1987 to get cable operators to sign long-term Tom Freston, MTV contracts in return for discounts because co -president, is "we feel we will be most vulnerable to credited with competition from new entrants over the much of the next five years." His proposal: Buy exclu- revival of the sive rights to video clips, which had been network given away free as promotional items. Pittman's plan succeeded all too well, says Constance Wodlinger, chief executive of Houston's Wodlinger Broadcast- ing, which filed complaints with the Fed- eral Communications and Federal Trade Commissions against MTV's exclusivity practices. The 24 -hour music video service claims to reach more than 5.5 million broadcast and cable households. She measure that audience, there is a fair charges that access to 75 percent of the margin of sample error." He suspects MTV added new live programs cable industry and many popular videos Nielsen overstated the percentage of every weekend, so advertisers can were denied her because of MTV's exclu- male teens before MTV's dropoff, how- combine product with event. Spring Break sivity. The FCC terminated its investiga- ever. Harkness hopes that the contro- at Daytona Beach prominently tion in May, "for lack of a basis to proceed versy will end when Nielsen switches to displays the MN logo further." The FTC's goes on. people meters this fall. For now, the rancor still runs high. A $3 a share off the offering price. The lawsuit is not MTV's only year ago MTV became the first and so far What Turner didn't count on was the problem. The controversy the only cable network subscriber to the sudden introduction of VH-1 for older over its Nielsen ratings has people -meter service introduced by AGB viewers. When CMC was announced, yet to be resolved. The rat- Television Research. AGB is Nielsen's Bob Pittman recalls, "We polled our affili- ings service listed it at a rival for the people -meter business. ates and found that while almost no one robust 1.2 share in fourth-quarter 1983, In the meantime, while MTV's return was going to drop us, Turner could get 15 during its run of The Making of Michael to its old format has mollified most of the million subscribers in two years as a sec- Jackson's "Thriller," perhaps the most record industry, the network still hasn't ond music service. We thought, shit, if popular video of all time. But in fourth- made peace with the biggest and most there's that big a market, we should be quarter '85, MTV's ratings were sus- powerful record company, CBS. Though the second service, not him. Instantly, he pended while the network and Nielsen it continues to supply videos to the net- was relegated from fighting MTV to argued. Nielsen's finding, finally released work, CBS had not renewed its exclusiv- fighting VH-1." in April 1986, was 0.6-a drop of more ity contract with MTV. Alvin Teller, VH-1 has yet to turn a profit, despite than 30 percent from fourth-quarter president of CBS Records U.S. and an start-up costs of only about $7 million, 1984. outspoken critic of MTV, questions versus $45 million for MTV. It generates MTV still claims that the drop can be whether videos, which can cost hundreds almost no affiliation fees since it's given accounted for by a change in Nielsen's of thousands of dollars to make, are worth free to any affiliate that carries MTV. household sample: The number of male the expense. (The money that MTV pays General manager Lee Masters says, how- teens declined about 30 percent between for exclusivity covers only a small per- ever, that VH-1 had a "phenomenal May and September of 1985. That could centage of the cost.) In fact, CBS has year" in 1986, and he hopes to see it cross not have been a reflection of real demo- scaled back production. "This beast was the 20 -million -household mark in 1987. graphic change, snaps one MTV execu- out of control," Teller says. "I was look- There is still skepticism about the chan- tive, "unless people were committing ing at a ton of money being spent on vid- nel's prospects. Says Billboard maga- teen genocide." David Harkness, direc- eos, many of which were no good. I also zine's Steve Dupler: "The idea of getting tor of marketing at Nielsen Media believe that an artist who has lots of hit 45 -year -olds to watch music videos is a Research, admits that "teens are a nar- videos has foreshortened a career with flawed one." row demographic group, subject to great overexposure." There can be little doubt, however, fluctuation, and when you're trying to There are also signs of a video backlash about VH-1's value as a flanker channel to on the part of recording artists. Hit acts guard MTV's monopoly. The strategy such as Foreigner and Journey now mirrored HBO's creation of Cinemax-a refuse to make clips. Jerald Wagner, a ploy that impressed Pittman when he THE leading music -industry consultant, also was running Warner Amex's The Movie COMPANY notes that record companies have proven Channel, a distant HBO competitor. Pit- PROFILE unable to earn a profit on videos by selling tman learned another lesson from HBO: them in stores. If videos continue to be a It's worthwhile to pay suppliers for cost item, Wagner says, record compa- exclusive use of their product. Network launch Date Subscribers* nies will refuse to make them-MTV or no MTV. "Unless video sells off the shelf, A confidential memo written by Pit- MTV 8/81 33.4 tman in 1983 laid out this strategy in I wouldn't give it forever," he adds. Despite those warnings, Freston detail. MTV, he wrote, is a classic distrib- VH-1 1/85 18.8 utor caught between a producer (the insists that music video-and MTV-are here to stay. "I agree that the novelty of record industry), and a retailer (the cable Nickelodeon 4/7931.7 system). "The traditional solution for the music video is gone," he says. "But the distributor to protect his business is to trade-off is that it's been institutional- 7/85 27.5 lock up the shelf space and/or lock up the Nick at Nite ized. People by and large are fascinated supply of the product." He urged that with TV, and they love music. To think MTV's just -announced switch from free ' (3/87) (IN MILLIONS) that you can't have success combining the service to affiliation fees be used as a tool two has to be wrong."

CHANNELS / JULY/AUGUST 1987 47 PRODUCTION Babe In Toyland

Animator Andy Heyward has turned DIC into Hollywood's hottest cartoon factory. But is it just a front for the toymakers who back his shows? by Patricia E. Bauer

Tt's after six o'clock on a Thursday and toy commercials. This has been possi- afternoon and the weekly devel- ble because the Federal Communications opment meeting at DIC Enter- Commission has eased the rules govern- prises in suburban Los Angeles ing commercial content of programming. has been going on for over an "The villain is not DIC or the toyma- hour. The young, hip writers and execu- kers," says Peggy Charren, president of tives inside the conference room are Action for Children's Television. "It is alternately cheering and groaning as Ronald Reagan's deregulatory FCC, they float ideas for new television shows. which has allowed the industry to pre- Groping for words to describe a new char- tend that an all-out sales pitch is enter- acter, one earnest program executive tainment programming." says, "I see him doing con jobs and stings. This fall, while many companies are cut- He's more like... ." ting back production in the wake of a glut Andy Heyward, the company's boyish in animated programming, DIC (rhymes chairman, arches an eyebrow behind with eek) is charging ahead. It has 330 pink -framed glasses. "Why are you look- half hours of animation in production, ing at me when you say that?" more than any other studio, and will see "That's it! He's a huckster!" the man at least 60 half hours aired each week in shouts as Heyward and the others dis- the U.S., six on the three networks and solve in laughter. the rest in syndication. DIC cartoons fea- Hanna Barbera and Filmation covered For Heyward, the joke is a high compli- ture such recognizable characters as Den- their costs with network license fees and ment indeed. Over the past six years, he nis the Menace, Hello Kitty and the Pop- counted on syndication to generate has used a knack for sales and deal -mak- pies, and are seen across Europe and profits. But a proliferation of syndicated ing to build his company from a tiny two- Latin America. And, thanks to the com- shows has fractured the market. Ratings man operation into one of the world's pany's booming licensing department, for programs have dropped, advertisers largest producers of animated program- DIC characters grace everything from are fleeing and license fees are flat. ming, with revenues approaching $100 lunch boxes to slipper socks. At the same time, competition in the million. Yet Heyward also symbolizes a The DIC story is a tale of a company toy market has prompted manufacturers new-and many say troubling-direction with a strategy uniquely suited to its era. to seek starring roles for their toys in car- for children's television. DIC has flour- In years past, the children's animation toons. Like its older competitors, DIC ished, in part, by crossing the traditional business was a quiet kingdom dominated has embraced this trend and it now leads line between children's entertainment by a few sleeping giants. Companies like the industry in making toy -oriented 48 CHANNELS / JULY/AUGUST 1987 "Most Hollywood producers create programs based on concepts and then pitch them to networks and syndicators," says Andy Heyward, 38, chairman of DIC Enterprises. "They don't understand that shows have to be pitched to advertisers first-that's what television is all about."

shows with funding provided by toyma- Last winter, after a long internal strug- percent of the company's stock; Hey- kers or advertisers. Indeed, some of its gle over the direction of the company, ward, who owns about 45 percent, hopes rivals say that DIC's frenzied production Heyward emerged as the dominant force, to take the company public soon. of toy -driven shows caused the glut in the leading a $65 million buyout with Bear, For Heyward, the road to Hollywood first place. Stearns & Co. and Prudential Insurance began in nearby Beverly Hills. His Heyward set up shop in Los Angeles in to ease out founder Chalopin and Radio - father, Deke Heyward, was an entertain- 1982, just as the networks began actively Television Luxembourg, the large Euro- ment executive at American Interna- seeking new animators to broaden their pean broadcasting company that origi- tional Pictures and later Hanna Barbera, program supply. While courting the net- nally spawned DIC. Heyward's ouster of and Andy learned Hollywood's curious works, Heyward and DIC's founder, his former partner only furthered his rep- sociology from such family friends as French entrepreneur Jean Chalopin, utation as a tough, shrewd operator bent Dick Clark and Vincent Price. At 13, he realized that the profits lay in syndica- on conquering Hollywood on his own got in trouble at school after developing a tion, merchandising and foreign markets. terms. Chalopin and RTL now share 15 computer system for handicapping race -

CHANNELS / JULY/AUGUST 1987 49 DIC's shows rely heavily on tie-ins with toy lines and existing characters. Hulk Hogan's Rock 'n Wrestling (above, left) is based on the popular World Wrestling Federation star. The Real Ghostbusters was derived from the Columbia Pictures film. Originally, Dennis the Menace (center) was a comic strip, and Hello Kitty(below) is one of Japan's most successful toy lines. Lady Lovely Locks (top right) was developed by American Greetings and Mattel; Teddy Ruxpin came from Worlds of Wonder; and The New Archies was originally created for a line of comics.

horses as a science project one year, us that would be good for the company DIC's deals fall into two main catego- hardly endearing himself to teachers. financially, but I did not like the concept. ries. On many projects, DIC solicits toy After studying philosophy at UCLA, So I did them, but I was frustrated." companies and advertisers to hire it to Heyward landed his first job in Hanna Within a year, DIC had launched a syn- produce shows about specific characters Barbera's stockroom and eventually was dicated show, Inspector Gadget, and a set or toy lines. DIC produces these shows at promoted to story writer, later moving to of specials on ABC called The Littles. far below market cost by hiring and firing Filmation. In 1981, he was introduced to DIC had 81 half hours on the air a year its nonunion employees according to the Chalopin, who had founded the DIC later, and the company's offices had work flow and farming out its unskilled Group in 1976 with backing from Radio- moved from Andy's mother's kitchen to a animation work to the Orient. Television Luxembourg. Chalopin was series of temporary headquarters, finally DIC's dream deals, however, are those producing animated shows in Europe but ending up in an anonymous brick building in which it gets a big share of a program's wanted to crack the American market, in Encino. This fall, when the company backend while spending little or nothing and he hired Heyward to translate his settles into permanent space in a luxury up front. Syndicators, toy manufactur- rapid-fire French and introduce him building across the street from the presti- ers, card companies and others partici- around the Hollywood community. gious Burbank Studios, Heyward will put pate in the financing of DIC's shows and As the pair circled the globe peddling DIC's name on the roof in huge letters. in return receive a variety of benefits- their ideas and setting from ad time to a share up contracts with ani- of profits. Many shows mation houses in the MAKING IT BIG IN are supported by sev- Orient, it soon became eral participants at clear that Heyward's ANIMATION(DIC REVENUES -IN MILLIONS) once. real skill was in busi- The licensing agree- ness strategy. Indeed, ment for DIC's Dennis Heyward's obsession the Menace, a syndi- with improving the cated series scheduled company's revenues to move over to CBS made it inevitable that this year as a mid -sea- he and Chalopin, who son replacement, is a approached the busi- typicaldeal.Judy ness as a programmer, Price, CBS's vice pres- wouldpartways. A A ident for children's "Andy is market '82 '83 '84 '85 '86 '87(.0) programming, could driven," says Chalo- onlyaffordto pay pin." Many times .005 3.7 11 29 50 100 $150,000 per episode- shows would come to much less than the 50 CHANNELS / JULY/AUGUST 1987 average license fee of $250,000. Hey- demands for premium shelf space with ward, who had been coproducing the DIC'S FALL SCHEDULE retailers. Everyone's commercial pur- show with General Mills, agreed to a poses are served by locking in a package $150,000 licensing fee. General Mills is NETWORK before a show begins production. The Real Ghostbusters ABC DIC's methods for cementing such making up the remainder of the produc- Hello Kitty's Furry Tale Theater CBS tion costs. In return, CBS can air each Kidd Video CBS arrangements are sometimes ingenious. episode four times; General Mills gets The New Archies NBC It recently formed a joint venture with domestic syndication rights to the shows. ALF NBC Bohbot & Cohn Advertising Inc., a New DIC collects all revenues from foreign I'm Telling NBC York firm that buys advertising time for sales-no small matter, since the show is SYNDICATION retailer Toys 'R' Us and 70 other kid - an international hit, seen worldwide in Dinosaucers related advertisers. Bohbot & Cohn has seven languages. Beverly Hills Teens pledged to help DIC clear some of its "Andy is very clever at coming up with Sylvanian Families shows, and DIC clearly hopes that the ways to finance new shows," says Price. Starcom agency will buy spots on the shows on "We're putting up very little money to The Real Ghostbusters behalf of its other clients. put DIC's first -run shows on the network The Adventures of Teddy Ruxpin "Most of the producers in Hollywood and the threshold of pain is kept to a rea- Lady Lovely locks create programs based on concepts and Poppies then pitch them to networks and syndica- sonable level." Zoobilee Zoo Around DIC headquarters, advertisers Dennis the Menace tors," says Heyward. "They don't under- are respectfully referred to as "clients," Inspector Gadget stand that shows have to be pitched to and they are a part of the fabric of the Heathcliff advertisers first-that's what television company's everyday life. Firms like Mat- Archies (movie of the week) is all about." tel, Coleco and Worlds of Wonder are Barbie and the Rockers (special) encouraged to participate in virtually Hulk Hogan (special) Where all of Heyward's every aspect of their show's develop- Julie (special) ambition comes from ment, including characterization, scripts, 'Twas the Night before Christmas (special) isn't clear. But it's a story boards and animation. Filing cabi- palpable presence at nets are brimming with their voluminous DIC, as much as the notes. pursuing toy companies more vigorously cartoon characters and toys that adorn "From the beginning, Andy envisioned than hiscompetitors, often creating workers' desks. The talk in the hallways this as a two -corporation process," says shows to promote existing toys rather is about "what Andy wants"-live-action James R. McDowell, director of market- than allowing toys to grow out of shows. shows, big stars and even a theme park. ing services for Hallmark Properties, Such deals allow DIC to trade on the "Andy loves money," says Chalopin. "He which coproduced its Rainbow Brite spe- name recognition of an existing charac- loves glamour and success. He wants to use someone else's money to be a giant in the industry, and I think he only to participate with writers but to finance their shows. A toymaker's will be." help him in the selection of writers." In involvement in a syndicated series also Another Disney, perhaps-is that the the rare case that Hallmark is dissatis- makes it easier to clear the show, because plan? fied, a writer is pulled off the project. local stations know that manufacturers "I was thinking about Walt Disney the Heyward's strategy is not without crit- back their shows with ad buys and other day," Heyward muses. "It's so diffi- ics, however. The company cannot point national promotion campaigns that boost cult to do so much in a lifetime. I am 38. to a library of big ratings hits like Hanna ratings. Television tie-ins for their prod- Do I have enough time to do the things I Barbera's Yogi Bear or The Smurfs that ucts also help toymakers justify their want to do?" promise ongoing syndication revenue, and many question the company's long- range financial viability. Many also wonder whether Heyward has surrendered too much of his creative control to the toy companies. "Some companies really want a quality product," says one DIC associate producer. "Then again, some of them just want to make sure the kids can see the toy. They wouldn't notice if the dialogue said 'See Spot Bark.' " Such talk infuriates Heyward. "Just because something is associated with a toy line doesn't mean it isn't a good show," he says. Drawing distinctions like these has always been difficult in the animation business. Dating back to Mickey Mouse, zmost animated characters on television have eventually sprouted toy lines and related products. (Filmation, for exam- s ple, produced He -Man and the Masters of the Universe in conjunction with Mattel; Marvel Productions is producing JEM with Hasbro.) Yet Heyward seems to be Inspector Gadget and Teddy Ruxpin have made him rich; now Heyward dreams of a theme park.

CHANNELS / JULY/AUGUST 1987 51 The machinery of television celebrity has produced some unlikelystarsoverthe years-Mssrs. Ed, T. and Whipple, Big Bird, Dr. Ruth and Ed McMahon-but none quite as implausible as the trio of stolid, retired jurists presiding over the current crop of syndicated courtroom dramas. Judges Wapner, Keene and Burns (sitting, respectively, in People's, Divorce and Superior court) would not on the face of it seem to possess the stuff of stardom, yet stars they have become-albeit of vary- " 714, 4, ing degrees of brightness. Wapner, of course, is the longest sitting and best Judge William B. Keene Judge William D. Burns known. He receives sacks of fan mail, autograph requests wherever he goes and even the adoration of women-The Boston Globe declared him "an international sex symbol." Only half facetiously, his name has been put forward for a Supreme Court seat, and his name is said With the production values of C - to come up anytime pollsters canvass SPAN and the drama of a shop- Americans about their Supreme Court ping channel, People's, Divorce preferences. and Superior court neverthe- The success of the shows themselves less rank among syndication's will strike the first-time viewer as equally most popular shows. Below, implausible. The acting on Divorce and both plaintiffs and defendants Superior Court (People's Court uses real make their points on People's people exclusively) is as bad as it ever Court, perhaps the most overt- gets on national TV. There are no produc- ly political show on television. tion values whatsoever-each show boasts a single, standard -issue courtroom set; "action" is when someone rises to testify; and the nearest thing to props are the defective camshafts and dog -soiled carpets the plaintiffs on People's Court enter into evidence. Imagine a show that combines the production values of C - SPAN with the drama of a shopping channel and you have some idea of the level of excitement these programs reach. And yet, people watch. People's Court Contributing editor Michael Pollan is coauthor of The Harpers Index Book, published this month.

52 CHANNELS / JULY/AUGUST 1987 PR O G R A M M I N G Reality Shows: The Syndicated Bench Programmers have found a surefire way to raise ratings and keep audiences happy: Take 'em to court.by Michael Pollan

is the fourth -most -popular program in anguishing half hour of television. "Real" childnappers, wife abusers and philan- syndication, and Divorce and Superior lawyers argue before formerly real judge derers finally get their comeuppance. At Court-considering their more recent William B. Keene, who sat in Los Angeles the end of every afternoon, Judge Keene arrival-are not too far behind. Many sta- Superior Court for twenty years. Snow - comes along to dispense a strong dose of tions have had great success "marrying" haired, stern and quick to admonish the justice to the morally bankrupt world of two or three of these shows in a block couples before him for their inevitable the soaps. broadcast during the early fringe period outbursts, he is the sort of judge conserv- If Divorce Court plays to the soap fan, (the period from 4:30 P.M. until the eve- atives praise with the epithet "no-non- Superior Court has something to offer ning news begins). This scheduling makes sense." (Keene in fact was removed from viewers attracted to the more issue -ori- sense: It would be hard to invent a the Charles Manson case after charges of ented fare favored by Phil and Oprah. smoother transition from the world of grossly prejudicial conduct.) But Keene is According to the show's publicity, Supe- daytime soaps and game shows to the nowhere near as tough as the couples that rior Court plays for "higher stakes" than "real -life" drama of the local evening come before him. the other courtroom shows. Its cases news. In fact, each of the three court According to the disclaimer at the come from the newspapers, and deal with shows has taken elements from the eve- beginning of each show, these people are such hot and thorny topics as surrogate ning news (People's and Divorce, for played by "actors," by which the pro- motherhood, product liability, sex dis- example, have a "reporter" as an MC) ducers warrant no particular ability- crimination, drunken driving and book and spliced it to genetic material drawn only that what happened to the litigants banning. This sounds promising, yet the from one of the popular daytime genres. did not actually happen to the men and show is almost always dull. Though he The resulting creature may not be a thing women we see on the screen. In fairness, has been on the air only one season, it of beauty, but it is a strong competitor in it would be hard to act convincingly on seems clear that presiding judge William the fringe -time ecology. Divorce Court, so exaggerated and unmo- D. Burns, a former California juvenile - Consider Divorce Court, which pos- tivated are the characters' statements court judge, lacks the character and sesses soap -opera genes in abundance. and actions. No soap packs quite so much authority of his colleagues on the syndi- Each afternoon,it compresses the adultery, deceit and otherwise outra- cated bench. (And colleagues they are: anguish of a terrible marriage into an geous conduct into one half hour. In one Judge Burns has actually quoted from typical case, a marriage fell apart after Judge Wapner in his decisions; pretty twenty years because the wife, now in soon we'll have a substantial body of TV her fifties, felt too self-conscious about law.) Everyone else on the show is her body to continue spending summers alleged to be an actor. at her husband's cherished nudist colony. In his view, this constituted abandon- f the three big court shows, ment. To coax her to stay, he went so far Superior Court has drawn as to solicit donations for her plastic sur- the smallest audiences-high gery over the colony's p.a. system. Amaz- stakes notwithstanding. This ingly, she went along with this proposal, points up one of the anomalies only then to fall in love with her plastic 0of courtroom shows-their relative popu- surgeon. larity seems to be in inverse relation to Everybody always gets to sue on the their dramatic intensity. People's Court, grounds of mental cruelty-except for the where the stakes could not be lower, is by viewers, who would seem to have the far the most popular of the shows. Its imi- strongest case. But for diehard soap fans, tators figured that by heating up the Divorce Court has an obvious appeal. cases they could drive up the ratings; that Here they get to watch the usual crew of messy divorce and surrogate motherhood daytimeadulterers,backstabbers, would have considerably more appeal

CHANNELS / JULY/AUGUST 1987 53 PR O G R A M M I N G

On Divorce Court(below), Dr. Joyce Brothers plays an expert witnessina case involving transsexuality. Right, a litigant re-creates a crime scene on Superior Court.The acting is as bad as it ever gets on national N.

than a dry cleaner's malpractice. courts are jammed every day with savvy tionaries like Archie Bunker. Since then Logically, People's Court should have litigants citing precedents from People's the last word has belonged to uppity been swamped in the ratings. The fact Court. In a sense, People's Court is, as its wives and wise -ass kids-to an unruly that it hasn't been is further proof of what vaguely Maoist title hints, the most crew of de -Bunkers. By the time Dan might be called the Imitative Fallacy of overtly political show on television: it Rather moved into Walter Cronkite's TV Programming. It's one thing to rip off teaches that the system is ours to use, chair, paternal authority had pretty a hit, but you'd better understand first that we need not suffer the marketplace's much vanished from the screen. what factors contributed to the original abuses silently, that we should take In general, the conservative '80s have show's popularity, else you steal the action to redress our grievances. Com- seen the resurgence of Dad on television wrong elements. In this case, Superior pare that to television news, where any- (think of The Cosby Show and its host of Court producers Stu Billett and Ralph one who takes action is fanatic or prosperous clones). But in prime time the Edwards (who, ironically, produced Peo- deranged, and the government appears father has been updated and made hip- ple's Court) failed to see that it was not as a distant monolith that does nothing per-it's a long way from Robert Young's simply the compact dramas of the cases for us but extract taxes. Television news paternalistic smile to the mugging of neo- that made their first show a hit; much approaches the whole public realm with Dad Bill Cosby. The syndicated court more important was the large role played skepticism and irony, as an intermit- shows are for those who prefer their TV by Judge Wapner (who, in the absence of tently amusing spectator sport; with its Dads unreconstructed-they represent lawyers, gets to ask all the questions) and upbeat, participatory slant, People's the restoration of the TV patriarch to his the proven game -show appeal of watch- Court is, by contrast, the picture of politi- rightful chair. In his paneled courtroom, ing ordinary people compete. cal health. Judge Wapner has re-created Ward Of course, Judge Wapner is the populist Cleaver's paneled den: a quasi -sacred Tndeed, People's Court's true hero in this picture. Incorruptible, ground where Dad asked the questions, ancestor is the game show, syndi- patient, intolerant of slickness or obfusca- uncovered the truth and meted out cated TV's most populist (and, tion, he comes off as the ultimate friend of benevolent justice to his children. The right now, most popular) genre. the little guy. Though he can be wither- issues there were no more profound than People much like ourselves vie for ingly skeptical of litigants' claims, he those on People's Court-The Beave's prizes by testing their skills in a fairly never treats the silly little issues before softball smashes a neighbor's window; banal contest supervised by a likable, him with anything but the utmost Wally pockets a quarter he finds-and authoritative MC. The stakes of the con- respect. So single-mindedly concerned they mattered just as much to the princi- test don't matter-the "content" of with justice is Judge Wapner that he can pals. At the end of each episode, Mr. Wheel of Fortune or Jeopardy holds no overlook the irony in the case of the man Cleaver had set the world right again. more intrinsic drama than the content of who sued a grocer for 75 cents for selling People's Court; trivia works just fine. (If him a flat can of beer. It's the principle of people's Court is the most pop- tough cases make bad law, easy ones the thing. Imagine what a news anchor ular courtroom show because seem to make good TV.) Also like a game would have done with such a case. Judge Wapner is the best and show, People's Court is, by television Judge Wapner and, to a lesser extent, most visibleRestoration standards, activist: We get involved, take Judge Keene, belong to a rare, all -but - Dad. It doesn't hurt that he sides, throw answers at the screen. Game extinct television species: adult figures of looks like a cross between Robert Young shows draw us into the vicarious experi- unambiguous authority. They wield no and Supreme Court Justice Scalia. But ence of overnight success; People's Court derisive irony, as the perennially boyish equally important is the familiarity of his feeds our fantasies of revenge against the TV newsman does; neither are they the jurisdiction. Sure, it's satisfying to watch dry cleaners, used car dealers and neigh- butt of any. They are, in fact, the televi- Judge Keene restore order to the moral bors whose abuse we suffer every day. sion Dads of old, returned a bit grayer, chaos of the soaps, or Judge Burns In fact this involvement is not strictly but no less firm or wise or right. resolve the burning issues of the evening vicarious. Like the game -show fans who This, I think, is the key to the success of news. But we don't live in either of those besiege producers by the thousands for a courtroom drama in general, and Peo- worlds. Most of the time, we inhabit the chance to appear, People's Court viewers ple's Court in particular. These shows banal yet trying world of the market- have actually heeded court "reporter" exploit our nostalgia for the stolid, omni- place, where selling someone a lemon is a Doug Llewelyn's closing admonition to scient Dads of Leave It To Beaver, Make capital crime and justice is a full refund. "take 'em to court." According to a Room For Daddy and Father Knows Best Not terribly exciting, perhaps, but it is recent article in the Wall Street Journal, who were banished in the '60s, to be our world, and Judge Wapner wants to the nation's small -claims and municipal replaced in the early '70s by foolish reac- set it right.

54 CHANNELS / JULY/AUGUST 1987 Clearinghouse KIDAComputerized and Radio Television forChildren's

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202-291-1400. PROGRAMMING Reality Shows: The Syndicated Conch

Move over Phil and Oprah, the real shrinksare about to take over the practice. Itmay make for interesting TV, but willanyone get help besides the distributors? by Joseph Vitale

Being entirely honest with meaningful stares and arched eyebrows, ("Marion's in the Guinness Book of oneself is good exercise," is similar; the camera work and directing World Records for the most continuous said Freud about psycho- (a penchant for close-ups) familiar. And headaches"), and following Andrew's therapy. But what would he soap fans will get some of the same gratifi- revelation that he has had an extra -mari- have thought about exercis- cation without having to endure weeks of tal affair, Forward has them holding ing in full view of millions of television exposition and plot twists. It usually hands and promising to make amends. "I watchers? For years, Phil Donahue and, requires hours of faithful viewing of the really feel terrific about this session," she more recently, Oprah Winfrey have been typical soap to discover what's really purrs in satisfaction. What therapist practicing a kind of video therapy with- wrong with Marsha. On these shows, wouldn't, after accomplishing the impos- out portfolio. Now the amateurs will have Marsha comes right out and tells you, sible in 22 minutes? to move over and let the professionals usually within the first ten minutes. Of the two "re -creations," Lifetime's have ago at it. Strictly Confidential is the work of Our Group is clearly the superior drama. Next month, broadcast stations around Donald Kushner and Peter Locke, the The writing, by Emmy and Peabody the country will debut two syndicated team that has produced television's most Award winner George Lefferts, is out- "therapy" programs, Strictly Confiden- popular reality -based program, Divorce standing and the ensemble acting on a par tial, from Blair, and Getting in Touch, Court. That show's success has no doubt with the best of the soaps. Assembled in a produced by Dick Clark and Malrite. helped Blair win clearance for the new tastefully appointed living room, Our They join two others, Our Group, pro- effort. Dr. Forward's expertise is in mar- Group consists of an ex-husband and wife duced by Chelsea and LBS, and People in riage counseling, and that's what Strictly planning to re -marry, a retired cop who Crisis, from Lynch/Biller and Viacom, Confidential is about-couples working no longer feels useful, an overweight which premiered last month on cable's through crises in an encounter -group set- young woman who masks her loneliness Lifetime network. ting. But from the look of the pilot, the in sarcasm and a dashing man -about -town Of the four, Our Group and Strictly matrimonial problems will skew decid- who turns out to be a fraud. Confidential are dramatic re -creations edly sexual. One episode featured a hus- using actors. Both, however, are hosted band and wife, Andrew and Marion, who hat the producers of by real -life therapists. Strictly Confiden- had recently split. Andrew complained both of these pro- tial's host is Dr. Susan Forward, radio that his wife was frigid; Marion accused grams have appar- psychologist and author of the best-sell- Andrew of getting her pregnant against ently failed to realize, ing Men Who Hate Women and the her wishes by surreptitiously poking however, is the folly of Women Who Love Them. Our Group fea- holes in his condom. Later, another hus- pairing accomplished actors with nonac- tures Dr. Barbara Levy, a family coun- band in the group is diagnosed by Dr. tors-namely, the therapists. Whenever selor and frequent guest on ABC's Good Forward as being a "sexaholic," a condi- a character begins to pull us into a dra- Morning America. It's clear that both of tion, she says, "we'll have to do some seri- matic monologue or when we're captured these "therapy -dramas" have appropri- ous work on." by the charged interplay of two patients, ated the soap opera as their model and Marion and Andrew's problems are cer- the wooden acting of the therapists the soap audience as their market. And tainly serious-probably insurmounta- reminds us that this is, after all, only why not? ble. But even after the two sling barbs at make-believe. The acting style, with its long silences, one another for most of the program If Lifetime scores with its ersatz ther- 56 CHANNELS / JULY/AUGUST 1987 TV gets therapy: (left to right) Dr. David Viscott counsels Jack Klugman; Dr. Susan Forward and guests; Dr. Barbara Levy. apy, it fails with the real thing. Dr. Dan master of the easy hand and the gentle duced this year's bumper crop of TV ther- Kiley, of its People in Crisis, is clearly touch. For one thing, the problems he apy shows? Even though broadcast tele- the most frenetic of the video shrinks, confronts are far less threatening. A vision has had a fling with the genre perhaps the most true-to-life, but also the recently divorced woman is troubled before, today's shows may be benefiting most annoying. Physically confronting because she can't bring herself to clean from the new, open attitude toward ther- his analysands, challenging them, cheer - her closets. Viscott deduces that the junk apy. In the past, the perfect family was leading them to personal revelations, this gives her something to hang on to in lieu the one without problems. Now, thanks Kenny Rogers look -alike is fond of send- of hubby. A father is gently chided by his to self-help books, popular magazines and ing his patients and audience down the wife and five daughters for being manipu- television itself, we know that the perfect emotional rapids without a rudder. lative. Viscott's advice: "Your daughters family is the one that deals constructively When a mother who left her children are the children of life, learn from them. " with its problems (the problems are a ten years before tries to apologize to her given). Today, people are therapy -shop- eldest son, Kiley suddenly grabs her and From time to time on Getting ping, looking for the one that will fit their pulls her around in her seat. "Don't give in Touch, celebrities will needs and busy schedules. These shows, him any of that West Coast crap," he drop by to bear their high - whether real or enacted, will provide shouts, as his studio audience applauds. profile anxieties. On the pilot, them with a glimpse of the process, en- "Tell him you're sorry the way you just Jack Klugman reveals the couraging many of the reluctant to dive in. told me." Dr. Dan's aversion to psycho - psychic cost of maintaining his integrity But there may be a hidden downside for babble doesn't mean he's above leaving as an actor. It's all a bit pat, a bit formu- real -life shrinks. Since many of our habits his viewers with a few of his own pearls. laic, but the show's relaxed, upbeat and much of our social intercourse is "Keep up the heart stuff and stay away atmosphere seems not only most suited formed by television, it may be that a new from the words," he implores a patient to the medium but also most likely to generation of analysands, weaned on midway through a session. "Walk in his attract the viewers who look to television video therapy, will grow disenchanted shoes," he urges the prodigal mother. for this kind of help. with the real thing. Will they become And he closes People in Crisis with this Therapy and broadcasting are old restless if their analysts can't bring them advice: "If you have money problems, see couch -mates. For years, radio shrinks to the proper dramatic heights each a banker. If you have a stopped -up drain, have plied their trade on call -in shows. In week? Will ordinary -looking doctors lose call a plumber. If your relationship is fact, two of the new video therapists, For- business to their more telegenic breth- stopped up, call a helper." ward and Viscott, are basically adapting ren? Will therapists soon face longer What transpires on Dr. Kiley's couch their radio formats to a new medium. In a silences, more meaningful stares and may, indeed, be closest to what actually sense, radio was the first to co-opt ther- higher arched eyebrows than ever takes place in therapy, but his high- apy as entertainment, proving that peo- before? And will patients feel cheated if octane analysis may eventually fry his ple with psychological problems could be, their problems can't be resolved at the viewers' nerves. well, entertaining. Listen to any of the end of 22 minutes? By far the most engaging of the new radio shows and you'll notice that the It's possible that some people may shows is Getting in Touch, with Dr. more outlandish the caller, the longer derive catharsis from their short sessions David Viscott. A best-selling author and he'll be allowed to stay on the line. with the video shrinks. For the rest of us, popular radio psychologist, Viscott is But what prevailing mood has pro- it will be the ultimate in voyeurism.

CHANNELS / JULY/AUGUST 1987 57 TEED REMUS 4thQUIZTER

OCTOB,

The annual Excellence This month's special sec- The annual FIELD GUIDE, issue honors outstanding tion, "Where the Ad Dol- the most comprehensive individuals and companies lars Are Going," analyzes survey of the electronic in television, including pro- the fastest -growing mar- media, assesses major in- gramming, broadcasting kets and categories of tele- dustry trends and the out- and cable. Space closing is vision buys. Space closing look for the future. Space September 15. is October 15. Closing is November 6.

Who's hot in programming? Whereare the ad dollars going? How will the business shape up for the coming year? These are the topics television professionals are talking about as the new season begins, and CHANNELS guarantees you maximum exposure to this audience with our fall lineup of special issues. For additional information, "%I to. please call Joel A.Berg er, r La Associate Publisher, THE BUSINESS OF COMMUNICATIONS (212) 302-2680 CHANNELS THE BUSINESS OF COMMUNICATIONS SALARY REVIEW

he television industry over Former GoodMorn- the past two years has crossed a historic watershed. The realities of the new, com- ingAmericahost petitive marketplace have caught up with a maturing industry, abruptly ending a [avid Hartman (top, period of robust growth that lasted almost 40 years. The three networks are now left) is paid at least controlled by new owners, changes largely brought about by erosions in national $1 million to pro- audience shares and advertising revenues. Even the mighty cable industry, with duce three prime subscriber penetration seemingly stalled at 57 percent, and Hollywood pro- time programs for ducers, facing resistance by the networks to the high costs of programming, are Cap Cities/ABC; feeling the pinch. It's only a matter of time before these financial pressures begin Chairman Thomas to exact a toll on salary levels throughout the industry-and indeed, there is some Murphy (right) indication that they already have. receives $134, 090. "New people have paid a pot of money for the networks because they feel that they can make more money than the previous ownership," says Joel Chasemen, Post -Newsweek station group president. "But there are only two ways to do that. One is to increase revenue, the other is to decrease costs. With advertising revenues so soft, they've been left with only the second alternative." As in other industries that have retrenched in recent years, the new frugality in the media business will be enforced in a lopsided way. Most of the savings will be squeezed out of salaries at the middle and lower ranks, while top executives continue to reward themselves with generous salary hikes and bonuses. The annual

CHANNELS / JULY/AUGUST 1987 59 IN FOCUS/Annual Salary Review

Gallagher Report survey of the media's technical union, the National Associa- directors and assignment editors 100 highest -paid executives, released tion of Broadcast Employees and Tech- gained somewhat, median salaries for this spring, revealed that average com- nicians (NABET), that set aside a rank -and -file anchors and reporters pensation for top executives rose 11.7 requirement extending the union's remained virtually the same, at $26,000 percent last year, with seven out of ten expensive "master" contract to nonun- and $16,900 respectively. The only receiving pay hikes. ion stations the company owns in Texas exception was the booming radio field, The salaries paid to highly visible and North Carolina. On the entertain- where median pay rose 16 percent. stars on entertainment shows and to ment side, the shifting of production to Within cable, the most interesting network news anchors and correspond- nonunion independent studios and mov- development is an apparent drop in gen- ents also appear to be relatively safe, ing of sets to Canada and right-to-work eral managers' salaries. According to a under the theory that there is a direct states in the South have significantly survey conducted by Cable Television relationship between their popularity eroded pay scales. Business magazine, the average salary and a show's ratings. "Paying the stars A similar disparity can be seen in the of system general managers fell from is not what bothers the new owners," salary gains registered in local broad- $38,100 in 1985 to $37,000 in 1986. The says a top New York media agent. "It's casting. According to a survey by the decline is due no doubt to a variety of the overall nature of the organization Broadcast Information Bureau, the forces, including the flattening out of that bothers them. The guy who is being average income of station general man- subscriber penetration rates, new hurt is in the middle to upper range, agers climbed to $96,890 last year, an start-ups and routine cost-cutting fol- making $100,000 to $200,000 a year." increase of 11.5 percent. Sales man- lowing mergers and acquisitions. The largest share of the networks' agers' incomes rose to $77,747, an 18.4 This Channels salary review is labor costs is salaries paid to members percent gain. The income of program divided into four industry sections: the of the technical and production unions, directors, however, declined, from networks; local stations and broadcast and contract negotiations with them $41,691 to $38,581. groups; programming and syndication; over the past year have produced one Meanwhile, salary increases within and cable. The listings of top executives important result. While the unions have television news departments trailed from publicly traded companies include secured modest pay increases for their behind both national trends and the both annual salaries and bonuses but do members, work -rule changes and other hefty gains of earlier years. A survey not reflect the value of stock -purchase concessions have considerably eroded conducted by the Radio and Television options. Separate tables in all four sec- their standing within the industry. Last News Directors Association showed tions list average salary levels for year, for example, Capital Cities/ ABC that television news salaries climbed by important jobs within each industry. concluded an agreement with its major just 2.2 percent last year. While news ADAM SNYDER

The Golden Parachute Many corporatecriticsdenounce of CBS's publishing group, was paid golden -parachute deals for top execu- $61,500 in base salary until the end of tives as a relic of the past. But an uncer- 1986 and will receive $800,000 in tain business climate and its trap- accrued bonuses and other payments in pings-hostile takeovers, asset sales two equal installments in 1987 and 1988. and shareholder dissatisfaction with For most media and entertainment profits-often make it necessary for companies, the norm for severance companies to guarantee new executives agreements seems to be to pay execu- that their long-term compensation isIv" tives' base pay for the life of their con- secure, even if their jobs are not. tract, while discounting bonuses and Laurence Tisch's elevation to CEO at deferred payments. Joseph Curran, CBS activated a flurry of parachutes former senior vice president of King there. The network will pay ousted World Productions, received salary chairman Thomas Wyman a $400,000 THOMAS compensation of $263,000 in 1986 and lifetime annuity plus bonuses and lump wymAti will be paid $240,000 of deferred com- sum payments of $3.2 million over sev- pensation spread out over 1987 and eral years. Former CBS News presi- 1988. Former Warner Communications dent Van Gordon Sauter will receive an senior vice president Alberto Cribiore annual salary of $300,000 until 1990, was paid $500,000 in severance and plus 50 percent of his scheduled bonus deferred compensation of $199,000. credits. Peter Derow, former president VAN GORDON RINKER BUCK SAUTER

60 CHANNELS / JULY/AUGUST 1987 Annual Salary Review/IN FOCUS

Compensation based as much on may then earn as much as performance as on automatic $150,000, but only if specific sales, raises-a common practice in budget or programming goals other industries for years-is NETWORKS are met. coming into vogue at the net- In middle management, base works. The new regimes at Capital Cities/ABC, CBS and salaries will probably continue to rise, but at lower rates than NBC are already exploring this as still another means of before. At NBC, McGuire says, average merit raises for exec- increasing productivity during a period of generally disap- utives and nonunion workers have dropped to 5 percent, pointing advertising revenues. down from 7 percent two years ago. "What you'll see in the future is more pay -per -performance, Further down the ladder, the prospects are even bleaker. with less escalation in the base pay," says Eugene P. This year, according to figures compiled by the federal McGuire, vice president for labor relations at NBC. A typical Bureau of Labor Statistics, average hourly wages for nonsu- example, according to McGuire, is an upper -management pervisory and production employees in all broadcasting executive with a current base pay of $100,000 and a perform- declined, from $10.96 an hour in January 1986 to $10.75 an ance -bonus factor of 20 percent, and thus the potential of mak- hour in January 1987. Network wages have been a major coming $120,000. A few years from now, McGuire says, that exec- ponent in the figure's steady rise over the past decade, and utive will still be making $100,000 in base pay, but the the recent leveling off reflects the more modest expectations performance factor will be raised to 50 percent. The executive of a maturing industry. MICHAEL HOYT

Dan Rather $2,500,000

JOHN F. WELCH JR. $1,687,617 MICHAEL MALLARDI $550,976 BARBARA WALTERS $1,300,000 Chairman and CEO, GE President, Special correspondent, Cap Cities/ABC Broadcast Group ABC News LAURENCE A. TISCH $750,000 President and CEO, CBS RONALD J. DOERFLER $574,610 Senior v.p. and CFO, Cap Cities/ABC NETWORKS: Average Salaries THOMAS S. MURPHY $734,090 Chairman, Capital Cities/ABC FRED J. MEYER $404,492 Broadcast engineer $67,600 Senior v.p. for Finance, CBS Staff director (news) $43,000 DANIEL B. BURKE $697,414 Television newswriter $42,328 President and COO,. WALTER CRONKITE $1,000,000 $36,608 Capital Cities/ABC Board member, correspondent, CBS Graphic artist Stage manager $30,250 $2,500,000 JOHN B. SIAS $619,493 DAN RATHER Production assistant $20,000 President, ABC Network Group Anchorman, CBS News Desk assistant $17,134 GENE F. JANKOWSKI $678,393 TOM BROKAW $1,500,000 President, CBS Broadcast Group Anchorman, NBC News Sources: Writers Guild of America, Directors Guild of America, Insti. lute of Electrical and Electronics Engineers

CHANNELS / JULY/AUGUST 1987 61 IN FOCUS/Annual Salary Review

The changes sweeping through The greater emphasis on pro- local broadcasting are shaking up STATIONS/ motion has led many stations to the traditional station hierarchy. create distinct promotion depart- While news directors and promo- BROADCAST GROUPS ments-in the past, promotion tion heads are rising in stature, was often a secondary function of program directors are falling behind, and salary levels are programming-and recruit top talent to run them. According closely pegged to this trend. to a survey by the Broadcast Promotion and Marketing Exec- "As local television becomes more competitive, broadcast- utives in 1986, 53.7 percent of promotion directors earned ers are realizing that there are two things that really make a over $35,000, compared with 19 percent in 1982. In major difference," says H. Richard Eldredge, executive vice presi- markets, salaries climbed into the $55,000 range. dent of Knight-Ridder Broadcasting. "You've got to be Program directors, meanwhile, are being squeezed out of strong in news, and you must effectively promote your sta- their jobs. Local programming is now largely the purview of tion's image." news departments, and the high cost of syndicated shows has Local news has become an important profit center in recent made it necessary for general managers to make the major years, and stations are more willing to pay a premium for top buying decisions. As one station consultant puts it, program news directors. In medium-sized markets, salaries have directors are becoming "just glorified traffic cops"-a major climbed as high as $60,000, compared with $45,000 five years reason why their average salaries dropped from $41,691 in ago. At affiliates in the top ten markets, salaries of $80,000 to 1985 to $38,581 in 1986, according to the most recent survey $100,000 are now common. by the Broadcast Information Bureau. RINKER BUCK

DONALD A. PE LS $870,000 RICK ANDERSON $44,000 Chairman and president, Chief engineer for WPCQ-TV, LIN Broadcasting Charlotte, N.C. W. ROGER SOLES $650,000 PAUL GREENE $26,200 President, Jefferson -Pilot Program director for KVAL-TV, Eugene, Ore. EVAN THOMPSON $553,263 President of television division, HUB BURTON $25,000 Chris-Craft Industries Sportscaster for WGGB-TV, Springfield, Mass. JOEL CHASEMAN $421,605 President, Post -Newsweek stations DAWN HOBBY $18,500 News anchor for WALB-TV, JAMES DOWDLE $402,383 President and CEO, Albany, Ga. Tribune Broadcasting STATIONS: Average Salaries DUDLEY S. TAFT $336,899 General manager $96,890 President, Taft Broadcasting Sales manager $77,747 LAWRENCE R. BARNETT $420,713 News director $36,400 Executive v.p., Chris-Craft Program director $38,581 E. BLAKE BYRNE $350,000 Promotion director $37,000 Group v.p. for television, Top news anchor $38,000 LIN Broadcasting Rank -and -file anchor $26,000 JAMES SMITH $205,000 News reporter $16,900 V.P. of sales, Sources: Broadcast Information Bureau, Radio and Television News Scripps Howard Directors Association, and the Broadcast Promotion and Marketing Executives

62 CHANNELS / JULY/AUGUST 1987 Annual Salary Review/ IN FOCUS

Cable may be television's growth the average salaries of TV station industry, but you'd never know it general managers and their cable by salaries at the system level. CABLE counterparts. According to two Though advertising, subscribers recentlycompletedstudies, and total revenue rose last year, cable G.M.'s average $37,000 a cable salaries ran from 5 to 20 percent below those in broad- year, while TV station general managers average$96,890, cast TV. Part of the reason is simple lag time-cable is a but there are significant differences in duties and responsibili- younger business. Part of it is strategic. ties for their jobs. "The people who run cable are determined to run it as a Unions, of course, would serve to standardize pay among business, not show business," says Susan Bishop, an execu- the technical and clerical staff, but unions have made little tive recruiter specializing in the field. Victor Para of the penetration in cable. Fewer than 10 percent of cable employ- Cable Television Administration and Marketing Society, ees are unionized, and owners seem to like it that way. which recently completed an industry survey, says it is diffi- "There have been clearly expressed resentments toward cult to get a clear picture of trends because wages differ union activities on the part of owners and their representa- greatly by region and system. "The general manager of a tives," says Arthur Korff, director of the cable TV depart- small 2,000 -subscriber rural system obviously doesn't make ment of the International Brotherhood of Electrical Workers. what the general manager of a 200,000 -subscriber urban sys- Cable installers have complained of late that their wages- tem does," Para says. some make as little as $4.55 per hour-are halfthose of tele- The wage gap between cable and broadcast is reflected in phone -company linemen. JOSEPH VITALE

Terrence A. Likes S650,500

STEVEN J. ROSS $2,800,000 WILLIAM J. ELSNER $157,437 Chairman and CEO, Senior v.p. and CFO, United Cable Warner Communications MARC LUSTGARTEN $175,400 JOHN GODDARD $1,269,687 Executive v.p. and director, President, Cablevision Systems Corp. Viacom cable television division BURTON REINHARDT $150,459 TERRENCE A. ELKES $650,500 President and director, President and CEO, Cable News Network Viacom International JOHN SIE $148,798 CHARLES F. DOLAN $400,000 Senior v.p., Chairman and CEO, Tele-Communications Inc. Cablevision Systems Corp. BRUCE E. DAVIS $96,989 GENE W. SCHNEIDER $370,916 Executive v.p. and COO, Chairman and CEO, Scott Cable Communications United Cable CABLE: Average Salaries JOHN C. MALONE $350,000 Chief financial officer $105,300 President, $96,200 Tele-Communications Inc. Regional vice president Mergers -and -acquisitions head $94,700 JIM C. SCOTT $263,835 Chief engineer $79,800 Chairman and CEO, $65,900 Scott Cable Communications Head of advertising sales Training manager $42,200 RICHARD C. SCHNEIDER $165,319 Traffic coordinator $14,600 Senior v.p. of engineering, United Cable Source. Cable Television Administration and Marketing Society.

CHANNELS / JULY/AUGUST 1987 63 IN FOCUS/Annual Salary Review

Like the rest of the entertain- nicians (NABET), which represents ment business, TV production PRODUCTION/ more than a thousand workers in companies are talking about the the Hollywood community. Negoti- need to cut costs. Independent - SYNDICATION ated increases are also smaller-in station bankruptcies, smaller ad the 4 -to -10 -percent range, much revenues, increased competition for time slots and the efforts lower than in the boom years of the late '70s. But a bigger prob- of stations to hold the line on programming prices have driven lem has been givebacks. "It's been the theme in all labor negotia- many companies into deficit financing. tions of the Reagan era and it's no different in this business," But by and large, the savings have come from out-of-state, says Ken Moffitt, assistant to the president of NABET. non-union shooting rather than from trimming executive sala- While the squeeze is on on the set, the executive suites re- ries. Companies generally consist of small, highly paid busi- main relatively tranquil. Most middle -level management and ness and creative teams. Once a deal is made, the company sales executives still command six figures. "It's the biggest hires writers and producers who, in turn, put together the joke in the entertainment business," says a recruiter who shooting crew. About 95 people, most of them unionized, have specializes in production and syndication. "Everyone keeps traditionally been needed to produce a half-hour sitcom. And talking about the need to drive prices down, but it still costs although the size of the crews hasn't shrunk, more and more as much as ever to attract and keep good people. If you start shooting now takes place in Canada and right-to-work states. to scrimp on salaries, your best talent will be lured away to (About half of all miniseries and TV movies are now shot out- the other producers." side Los Angeles.) Many union members are following, for- In syndication and distribution, six -figure salaries are also feiting overtime pay and benefits for work-a situation that the norm for the relatively small teams (about 10 people in- increasingly rankles union leaders but which they are almost cluding top executives, regional sales v.p.'s and business powerless to combat. types). But there the worries have been about takeovers, "We can't count on people who are desperate to rock any buyouts and the inevitable cutbacks that follow. "Everyone boats," says Marque Neal, business manager for local 531 of expects a shakeout," says one source familiar with the indus- the National Association of Broadcast Employees and Tech- try. "And soon." TERESA KLINK

MICHAEL D. EISNER $3,378,000 DON JOHNSON $100,000 per episode Chairman and CEO, Star of NBC's Miami Vice Walt Disney Co. PATRICK DUFFY $75,000 per episode CHARLES W. FRIES $755,820 Star of CBS' Dallas Chairman, president and CEO, Fries Entertainment MELANIE MINTZ $16,144 per episode Scriptwriter, CBS' Knots Landing MERV ADELSON $621,988 Chairman and CEO, WILLIAM KLINGER$19.89 per hour Lorimar-Telepictures Special -effects foreman, The Quick and 4 the Dead (HBO) LEW WASSERMAN $550,000 Chairman and CEO, MCA Inc. MIKE PRITCHARD $379 per day Stuntman, made -for -TV movie ARTHUR KRIM $333,833 Poker Alice Chairman, Orion Pictures ERIC PLESKOW $333,833 PRODUCTION/SYNDICATION: President and CEO, Orion Pictures Average Salaries V.P. of business affairs $125,000 EARL A. GLICK $100,000 Chairman of the board and CEO, to $200,000 Hal Roach Studios V.P. of domestic sales $175,000 to $450,000 GARY WILSON $500,000 Executive v.p. and CFO, V.P. of foreign sales $175,000 Walt Disney Co. to $350,000 Director of photography $2,500 HARRY EVANS SLOAN $234,167 S Co-chairman, New World Pictures per week Associate producer $2,200 per week AVRAM BUTENSKY $225,000 Executive v.p. for domestic Associate director $2,000 per week distribution, Fries Entertainment Script supervisor $1,000 per week OPRAH WINFREY $31,000,000 Assistant producer $600 per week Her share of profits from The Oprah Go-Fer $300 per week Winfrey Show Sources: National Association of Broadcast Employees and Techni. clans, and industry sources.

64 CHANNELS / JULY/AUGUST 1987 EYE

schools and the baby -faced cops pass as students. This AT FOX, THE QUARRY show takes its prom queens very, very seriously. The PRIVATEIS TEENAGERS New Adventures of Beans Baxter turns a geeky 17 - year -old into an accidental spy, taking his kidnapped In commercial TV's heyday, executives always father's place in "the network." It's a saucy ripoff of laughed off the idea of a fourth network. Start-up everything from James Bond to Get Smart, played costs would be too steep, affiliate lineups too with dead -on sincerity. Werewolf, which Fox officials skimpy, the pool of untapped creative talent too shal- held from advance viewing, has been billed as a combi- low. And audiences who might not know the differ- nation chase-with hints of The Fugitive-and senti- ence between a minicam and a jump cut could none- mental supernatural drama, capable of doing "any theless spot-and insist on-quality production story that Michael Landon does on Highway to values. Yet despite widespread doubts about whether Heaven." But its title and basic subject matter appeal there remains enough ad revenue to back three net- most readily to teens. In addition, there's the usual by William A. works, the past few months have witnessed probably assortment of precocious wiseacres in Down and Out the most serious, sustained and heavily financed effort in Beverly Hills, a sitcom of the rich life spun off from Henry III at a fourth network since Dumont folded in 1955. the film, and in Married ... With Children, ablue-col- Digging into the deep lar sitcom whose people pockets of Rupert Mur- bump against the credit doch, Fox Broadcasting has limits on their charge cards. spent up to a reported $150 TracyUllman'ssketch million to compete in late comedy, an acquired taste, night and on two weekend pitches a bit younger than `The secret is evenings. Most of the head- Saturday Night Live. line attention has gone to Another clear trend is to go to the the failure of Joan Rivers, a toward demographic tar- natural side dish, in her geting. The bumptious and same people first try at being a blue brightly written Married, who make plate special. The more which presupposes that sex striking event has been is the central basis of mar- network Fox's ability to accelerate riage and that the guys will series, pay from nothing to airing nine go scurrying out to the mostly solid, respectable garage at the first opportu- them more or series, ranging from sit- nity, leaving women in the coms both wry and raucous kitchen, is clearly meant as less the same to a cop show, a spy spoof a blue-collar backlash to money and and a comedy/variety pas- yuppiemania. Down and tiche. A top executive at Out, although set among promise to NBC who has been watch- the affluent, takes a gawky put their ing Fox says, "By andAdventures of Beans Baxter. A saucy teen ripoff of James Bond. outside, Robin Leachish large, they look like network programs-the same view and could appeal to the same Middle American shows on quality." Fox's offerings fully match the average types if it improves on its klutzy pilot, which wobbled batch of new shows at the average network in an aver- between satirizing and embracing LaLa Land values. the air.' age year. There's no Hill Street Blues on display yet, By contrast, the urbane Duet is about two couples, noM*A*S*Hor even a Cheers-but plenty of thor- educated and trendy and full of savoir faire. The oughly professional, watchable TV. comic -relief duo are snobs; the central pair aren't, but The reason is simple, according to Fox v.p. Brad could be. The show's natural audience is confidently Turrell: "The secret is to go to the same people who upscale. Ditto for Patty Duke's Karen's Song about a make network series, pay them more or less the same fortyish, divorced career woman with a grown daugh- money and promise to put their shows on the air." ter who is trying to start life anew without losing her Performers include George C. Scott and Patty Duke, dignity. Its pilot is one of the best of the past decade, and producers and their past credits number James L. evoking a fully developed world. Brooks (The Mary Tyler Moore Show), Ed Wein- The one hitch, as the NBC executive points out, is berger (Taxi) and Stephen J. Cannell (The A -Team). that Fox is apparently stuck with airing whatever it The writing is a little racier than normal, notably on buys. Says he: "Brandon Tartikoff has pretty good Cannell's cop show 21 Jump Street. But there's no judgment but I sure wouldn't want to have to air overall counter -programming ploy: Fox hawks everything we purchase. You're bound to make some another brand of a popular product. big mistakes." Fox already has: George C. Scott's The Sunday lineup started appearing in April and White House comedy, Mr. President, generally has the Saturday shows came on line in mid -July. With had no discernable point, certainly no bite or wit or them, it is plain that Fox is aiming strongly toward even charm, and it is deservedly rumored to be tick- older kids, especially teenagers who may dominate eted for Plains, Ga. or San Clemency. Yet in truth sim- family viewing (younger siblings defer on the basis of ilar bombs get onto the other networks every season. age, parents in a fervent effort to keep teens home and Financially, it's too soon to tell if Fox can survive.

out of trouble). Jump Street focuses on crime in high Artistically, Fox is already right in the game.

CHANNELS / JULY/AUGUST 1987 65 Loughlin's Lament by Jean Bergantini Grillo WARNING: Managing an indiemay be hazardous to your health.

Tt all began with a harmless ques- almost everything right, yet still tion. Joe Loughlin, vice president couldn't measurably improve his sta- and general manager of Tribune tion's standing in the market. His expe- Broadcasting's WGN-TV in Chicago, rience suggests that owners and broad- was enjoying a beautiful spring day in cast groups may have to lower their Denver, his first real vacation in years. expectations about what general man- As Loughlin ate lunch with friends at an agers can achieve, and redefine the job outdoor cafe, someone cheerily asked in order to retain their best talent. him, "So, what's it like down at the At 57, Joe Loughlin should have been superstation?" at the pinnacle of his career. He began Without really thinking, Loughlin as a writer and announcer at a variety of suddenly blurted out, "It's a real pain in television stations in the South, and the ass." then was news director and later gen- His luncheon guests were surprised, brought Loughlin to Chicago four years eral manager at Gaylord Broadcasting's but no one was more stunned than ago to reorganize WGN after a long WVTV in Milwaukee, transforming it Loughlin. "I spent the rest of the day period of internal difficulties. "The job from a struggling UHF to the leading asking myself, 'Why did I say that?' " of managing a 24 -hour indie today has independent in the market. In 1980, One week later, he had his answer. placed extreme demands on general Tribune wooed him away to run its Den- Citing concern for his health and the managers. Everyone is concerned." ver station, KWGN-TV, and moved him impossible demands of his job, Joe The high cost of syndicated program- to Chicago in 1983. Loughlin quit, walking away from the ming, the record number of ownership number -one independent station in the changes and the competition from start- Then as now, WGN looked pros- third -largest market, the crown jewel of ups have placed enormous pressures on perous and healthy. Unlike New Tribune's six -station group, and argua- independent stations. In the past, gen- York or Los Angeles, which have bly one of the best positions in local eral managers were primarily responsi- six or seven VHF stations battling for broadcasting anywhere in the country. ble for programming and promotion,market share, Chicago had only four. Loughlin's resignation was covered by but today they must also be astuteWGN's overall ratings were only a the Chicago papers and the trade press, financial stewards and ruthless effi-point behind the third -place affiliate, and clearly embarrassed Tribune exec- ciency chiefs, juggling the needs of WMAQ-TV (NBC). Its only competition utives, who initially attempted to talk overworked staffs against the demands in the independent field was WFLD, a Loughlin out of leaving and later of profit -oriented owners. UHF Metromedia station since sold to expressed fears that the publicity might Has the job become too much? The Fox. WGN was home to the popular hurt his future in the industry. Loughlin saga of Joe Loughlin at WGN is the Bozo the Clown children's show and the was deluged with calls from friends, story of a general manager who didrevered Chicago Cubs, which Tribune many of them worried that he was exit- had bought in 1981, largely as a source ing due to an incurable illness. of programming for WGN. The station "I told them that I was in very good also drew considerable strength from health," Loughlin recalls. "ButI Tribune's local presence-in addition to wanted to stay that way." the Chicago Tribune, the company also At least 30 percent of these "fare- owns the top -rated radio station, WGN- well" calls, Loughlin says, were con- AM. As a passive superstation carried gratulatory, and that was perhaps the by United Video, WGN had an enor- most unexpected lesson of the experi- mous national audience without spend- ence. Many of his colleagues in the busi- ing a dime on extra programming or ness were glad-for Loughlin's sake- promotion. As a result, according to that he was throwing in the towel. To Loughlin, WGN led the market in total them, the significance of Loughlin's advertising revenues. decision stretched far beyond WGN and Beneath the surface glitter, however, Chicago, symbolizing the frustrations of Loughlin found a station sorely in need general managers at independent sta- of repair. Despite WGN's revenue lead- tions nationwide. ership, ad growth had been flat in recent "There's no such thing as business -as- years, and in critical areas such as chil- usual anymore," says Tribune Broad- dren's programming the station was casting president James Dowdle, who Former WGN-TV general manager Joe Loughlin actually running behind WFLD in local

66 CHANNELS / JULY/AUGUST 1987 instead, they're almost even. And in terms of revenue, they've allowed Fox The Windy City Picture to nip at their heels." Loughlin's greatest frustrations were in programming, where, despite many Net Broadcast Ad Revenue, 1986 $395M improvements, he continued to be dog- Projected Net Broadcast Ad Revenue, 1987 $450M ged by criticism that WGN devotes very little of its airtime to news docu- Cable Penetration 31% mentaries and local issues. "Never has Cable Subscribers 943,570 a player come to the table with more good will and squandered it," says Rob- VCR Penetration 59.3% ert Feder, the television critic for the Market Rank 3 Chicago Sun -Times. 3,063,370 Tribune bristles at such charges. "A TV Households full 27 percent of WGN's programming is Tribune -produced," says Dowdle. "Show me another indie with those DMA ratings. Prior to Loughlin's Within a three-month period, Loughlin numbers. People take pot shots at WGN arrival, WFLD had bought M*A*S*H, fired his general sales manager, his pro- because it's an institution." which quickly became a ratings success gram director and an accountant. on the rival station. WGN wasalso "It just wasn't fun anymore," Agood deal of WGN's schedule, under fire from local TV critics and Loughlin laments. "I was getting fur- however, is made up of Bozo, viewers for poorly editing its prime ther away from the things I enjoy-pro- the Cubs, and syndicated Trib- time movies and for not airing enough gramming and promotion. I was work- une fare, which hardly count as locally public-service and news programming ing ten hours a day, six days a week, and oriented programming. Loughlin did introduce Chicago's first noon news and devoted to local problems. didn't see much of my family. Yet the station seemed to be standing still." beefed up WGN's 9 P.M. news show, oughlin immediately undertook WGN is still Chicago's top -ranked both of which are doing well in the ratings. He also launched Minority Busi- amajorstationoverhaul. independent, but it enjoys a strong lead J"There was a mirage that WGN over rival WFLD only during the Cubs ness Report, a weekly half-hour show was a great production center," baseball season. In the Nielsens, aired on Saturday morning, but another Loughlin recalls. "Well, it wasn't. Our WGN's sign -on to sign -off ratings have program devoted to local newsmakers, on -air product was a joke. I had to fallen from a 7 to a 5 since 1983, and only Chicago Profiles, was shelved for budg- replace every piece of equipment, and one point separates it from WFLD. This we had a bunch of radio engineers who decline reflects the modest ratings shows inaugurated during Loughlin's knew nothing about television." Within gains of the two start-up indies. WGN regime-a 25th -anniversary special for a year, Loughlin had pared down the fares better in the Arbitron ratings, Bozo, the annual Gospel Music Awards staff from 315 to 250 employees. He placing third overall in the market and and the Windy City Celebration-were improved WGN's promotion efforts, several points ahead of WFLD. But in less memorable. Perhaps Loughlin's and later hired a new promotion direc- terms of revenue, WGN has slipped best move was his decision to move tor. He also modernized the station's from number one, and is now believed to Magnum, P.I. to 11 P.M., where it now audience research to help with program be tied for second with WMAQ. wins the time slot. buys and to provide more accurate "Given WGN's past prestige and "When it comes to indies, critics have information to advertisers. dominance, and considering that it's the a double standard," Loughlin com- These internal reforms should have only indie carrying the fanatically loved plains. "They say, 'Isn't he lucky, he's given Loughlin a few months' breathing Cubs,theyshouldbe creaming got the Cubs.' But they never say of a room, but he soon faced a new, external WFLD," says analyst Chuck Kadlec, a network affiliate, 'He's lucky, he's got threat. In 1986, Fox Broadcasting partner at the Washington consulting the NFL or Miami Vice.' " bought WFLD and made an aggressive firm of Frazier Gross & Kadlec. "But In the end, however, it wasn't the crit- indie even more so. Also that year, two ics or the workload that felled Joe new UHF independents, WGBO-TV Loughlin. Instead, he seems to be a vic- and WPWR-TV, entered the market. tim of his own high standards. Even "Even if these new indies only sold 60 after reorganizing WGN's staff, im- percent of their inventory, that's $15 proving its promotions and research million taken away from the existing and introducing new programming, stations," Loughlin says. "And with external market forces were such that overall market growth of only 5 per- WGN remained virtually in place. That cent, that doesn't leave much extra for should have been enough for Loughlin, everyone else." but it wasn't. By 1986, WGN, like many other So now he'll spend several months or indies, faced another revenue double - a year unwinding, voluntarily unem- whammy. It was overpaying for pro- ployed, pondering what all this means grams while its ad sales underproduced. for his industry and what his future will Syndicated shows such as SCTV and be. Carson's Comedy Classics were "I could always be a GM again, but I launched to disappointing ratings. don't have to. I'd like to be a program Then, bungled contract talks with director, but others may see me as over- Anheuser-Busch almost caused that qualified. Anyway, I now have nothing longtime Cubs sponsor to pull its ads. WGN's beloved Bozo has aired for 25 years left to prove."

CHANNELS / JULY/AUGUST 1987 67 Torn Curtain Tt's video night at the Kowalskis. ket industry. By 1985, NOWa, the under- The VCR Jan and Ewa are having a few ground publishing operation, had estab- people over to their Warsaw lished a cassette unit offering a wide revolution has apartment for an evening of mov- range of pirated Western films and some ies. Refreshments have been laid censored domestic productions for an come to Eastern out and chairs arranged in front of the TV eager and expanding audience. Right set-their second -most -prized posses- now, the fare is almost entirely Western Europe. But it's sion. Number one is their new videocas- movies. Once released on tape, American sette recorder. Ready to roll are several and European films quickly find their way not messages of cassettes, including the just -released to Poland for reproduction in quantity. American film Out of Africa. As elsewhere, Rambo has been a block- freedom and The scene isn't that different from what buster in Eastern Europe; Woody Allen goes on these days in living rooms from is also popular. But it's not only the main- liberation the Bangor to Burbank, except that the stream hits that find audiences. Science Kowalslds will be charging their guests fiction and horror are favorites, as is por- oppressed are admission. In their small way, Jan and nography. Especially pornography. A Ewa are in the theater business. They are Marxist-Leninist no -no, it accounts for up most eager to also in the vanguard of a communications to 30 percent of East European under- revolution. In defiance of government ground cassette traffic. view. It's Rambo policy and despite technological obsta- In Poland, the Jaruzelski government cles, the videocassette recorder has has responded to the video invasion by and American- arrived in the closed societies of Eastern threatening unauthorized traffickers Europe. And as is so often the case in with fines and imprisonment. But co-opt- made porn. these matters, notes Vladimir Kusin, ing is the preferred tactic. Early on, the Poland is leading the pack. government moved to license the private Kusin is acting director of research and clubs, sanctioning the activity to gain con- by Don Graff analysis for Radio Free Europe, which trol over the material. But that has not views the advent of video as one of the wiped out underground distributors, who most significant Soviet -bloc develop- handle a broader range of material, ments in decades. Not all the implications including controversial fare. are internal. What is an underground At one point the government was said market now-the traffic in Western mov- to be considering importing "approved" ies-might become the next great above - Western features under license. But the the -table market for American television plan was dropped, says Slawomir Suss, a and video programmers if Soviet premier Polish specialist with Voice of America. Mikhail Gorbachev's policy of glasnost The reason: money. "They have no hard (openness) turns out to be genuine. currency," says Suss. The first signals of an electronic revolu- The Polish government has, however, tion in Eastern Europe were detected in moved into VCR sales through its hard- the rapid growth of privately owned currency shops, where VHS models from VCRs. Figures gleaned from Radio Free Western Europe go for $435 to $500. Pol- Europe's reading of the official Polish ish TV is compatible with the French press show a jump from less than 3,000 SECAM system, which makes copying VCRs in 1983 to more than 70,000 a year Western material relatively easy. But later. They were brought into the coun- while the government sees the video chal- try legally by visitors and by Poles lenge as primarily political, to most of the returning from abroad. They were fol- challengers it is first of all a business. lowed by a flood of smuggled tapes. A net- "They're dealing in material with some work of underground rental clubs sprang political significance," says Victor Yas- up, and Poland soon had a new black -mar - mann, a Munich colleague of Vladimir Kusin. "But they're most interested in Don Graff is a nationally syndicated col- money-good money and quick." umnist who travels widely in Europe. How good? The balance sheet of the

68 CHANNELS / JULY/AUGUST 1987 Warsaw Saturday night: Business at "approved" video shops is brisk, but it's brisker underground.

Kowalskis' video evening provides an formidable technological barrier. that is only 150 rubles a month. indication. They will charge their guests The Soviet scanning system, unlike the Will Gorbachev's glasnost mean a dra- up to 500 zlotys a viewing head. That's a Polish, is not compatible with those of matic change in the situation, possibly little more than $2 at the official rate of Western Europe. It is a variation of the opening a new and entirely legal Eastern exchange and considerably less on the French SE CAM, but requires a con- market for Western programmers? No black market-but still not insignificant verter to obtain a satisfactory color one sees the possibility of that near term; in an economy where a typical day's wage image when mated with a recorder oper- Poland's hard currency woes, for one is under 1,000 zlotys. If the Kowalskis ating on either SE CAM or the German thing, afflict the entire bloc. bought the movies they're showing, they PAL system. And converters cannot may have paid the supplier the better legally be made or marketed in the But addressing the Soviet part of a month's salary. Renting from a U.S.S.R. Union specifically, MIT's private dealer, they might lay out half as But Loren Graham, a specialist on Graham suggests Gorba- much, depending upon demand for the Soviet science and technology at the Mas- chev and those around him film. But with a full house, they can sachusetts Institute of Technology, says may want something like expect to recoup expenses and more. the little black boxes are readily available that to develop in time-if they can con- on the black market. Demand at the trol it. Their best of all possible worlds, The Polish pattern is repeated moment is not great, however. The num- according to Soviet watchers, would be a throughout the bloc, with the ber of VCRs in the U.S.S.R. is estimated public sufficiently sophisticated to absorb notable exception of East Ger- at only 300,000-infinitesimal in a popula- Western media without undermining the many, where the reach of tion of more than 270 million. The VCR, Soviet system. West German television is says Graham, remains essentially a lux- The opening up of the Soviet market may nearly total. Smuggled video has less ury for the well connected. already be under way. This year, Soviet TV appeal there as forbidden fruit. East Ger- Most videocassette recorders now in purchased ABC's antinuclear made -for -TV many bars prerecorded Western cas- private Soviet hands are imports. But in movie, The Day After, and even considered settes but, accepting the inevitable, sells 1984, the state began marketing a Soviet buyingthenetwork'scontroversial VCRs and blanks with which viewers are model, the Elektronika-VM12, which Amerika before passing on it. The Soviet free to record what they wish. uses some Japanese components. The film agency, SovExportFilm, also arranged While Poland provides the pattern, it is claimed annual production total is only with Heritage Entertainment to distribute in the Soviet Union that video's drive to 20,000 and it was reported to be setting U.S. films in the U.S.S.R. the East is likely to have the greatest sig- something of a consumer -product unreli- Meanwhile, back in Poland, the censors nificance. VCRs were introduced there in ability record, with every fourth recorder continue to lose ground. The current esti- the late 1970s by the privileged elite, going straight from assembly line to mate of private VCR owners is 600,000, which brought the novelties home from repair shop. suggesting that the numbers of Jan and travel abroad. Word got around and Graham puts the VM12's price at 1,700 Ewa Kowalskis are doubling every year. interest spread. rubles-more that $2,000 at the official Bloc governments, says Radio Free "After only a few years," says Yas- rate of exchange. But the price can only Europe's Kusin, are faced with an irre- mann, "video in Soviet society has be appreciated in terms of the average sistible new force: "They can't stem the replaced the automobile as a status sym- Russian's wages. For "an ordinary, fairly tide. They can't ban VCR use. And they bol." And this has happened despite a low-level" professional, Graham says, certainly can't control it."

CHANNELS / JULY/AUGUST 1987 69 Go North, Young Man Stephen Cannell hates to do it, but says he must work in Canada if he wants to stay in business.

With four one -hour dramas scheduled for CANADIAN PRODUCTION A -Team or a Rockford, you're going to prime time this fall, three on the net- get $700,000 or $800,000 or $1 million a works and one on Fox Broadcasting, I'm one of many, many people taking pro- negative, so that makes it worth the gam- Stephen Cannell ranks among televi- duction to Canada. The plane up there is ble." And we'd figure that the profits sion's top producers. Yet squeezed by like the Polo Lounge. The last trip up I from The A -Team would pay for the climbing costs, level license fees and a saw Sherry Lansing and everybody from shows that didn't do well. But now, what shrinking syndication market, Cannell Paramount. There are about 40 U.S. com- happens when all of a sudden you can't is looking for new ways to make inde- panies shooting in Canada right now. make $1 million, even on a hit show? A pendent TV production pay. His latest I'm making pictures in Canada for eco- show like Cagney & Lacey, that's won plan: Build a studio near Vancouver nomic reasons. My wife and I own every Emmys, goes out there and dies. They where he can produce for less and rent dollar of debt that this company takes, keep pulling it out of the market so they out space to other cost-conscious pro- and our company is currently taking a lot won't damage it. Or Miami Vice. They ducers. All but one of his fall shows will of debt because you don't make hour tele- can't give it away. Now you have to start be shot in Canada. In 1980, Cannell vision shows for what the networks pay looking at those negatives that you're began his own production company, you. There's a certain feeling around producing for $300,000 or $400,000 out of which has spawnedThe A -Team, town, among people who don't have to your own pocket, and say, "Are we mak- Hunter, and Greatest American Hero. carry the bank notes, that producers are ing a big mistake here?" I think we have He spoke recently with Channels West going to Canada just to get wealthier. to realize that potentially there is no back Coast editor Patricia E. Bauer. The fact of the matter is, if I don't go to end on almost any show. Canada to make my programs, I'm out of A lot of people may think I've made a business. lot of money on A -Team, because it was sold for $1 million an episode. But I THE FINANCES haven't seen one dollar yet-except for I can borrow a certain amount of money the merchandising, which did pretty well. against A -Team negatives and the other Still, when you lose $10 million a year to shows, but I have a finite amount of produce the show and you make $2.5 mil- money that I can borrow and I'm getting lion back in merchandising, you have a very close to going as far as I can go. To net loss on that project of $7.5 million a lose $400,000 a show four times a week- year. And as for the syndication reve- $1.6 million a week-who wants to do nues, the stations don't have to pay until that? In Canada, hopefully, I can make they put A -Team on the air. Some sta- them very close to license fee plus what tions may start putting it on this year. they will make in foreign sales. The Others may put it on next year. But they exchange rate is a big incentive. You get don't have to put it on. an extra 30 cents on every buck. So that means if a series were going to cost me THE NETWORKS $1.3 million here in Los Angeles and I License fees have not stayed equal with move it to Canada, I've saved $300,000 on union increases and cost -of -living in- the bottom line before I even deal with creases. It's just that simple. Eight or other savings. It's been really great up in nine years ago, the networks paid just Canada, but I'd much prefer to shoot here about what it cost to make the shows. in Los Angeles. Now, the shows cost roughly twice as much to make, but the license fees have THE VANISHING BACK END only gone up by about 10 or 12 percent. So It used to be that we'd say, "If you getan who pays the difference? Moi. And the

70 CHANNELS / JULY/AUGUST 1987 1 e can't go on like this. The industry is not a cash cow. If we don't do something, a lot of people will be selling shoes. I networks say, "I know, I know, but you that have shorter shooting schedules, so and a series commitment with a network, guys are going to make a killing in the the performance levels are probably not then they probably deserve some per- back end." Well, in the last year and a going to be as good. We used to make centage of the profits. But it's gotten to half, that's dried up. And now it seems Rockford Files in six days, and I thought the point that they want a package com- that the "larger -sucker" theory is in they looked great. But the crews moved mission if they hold just one key writer- place. If I tell the network I won't do it faster back then. People used to make just one element of the package. To me, anymore, they say, "Okay, we'll just get shows in five days here. Then they made that feels more like extortion than it feels a bigger sucker." Last year it was New them in six, then seven. Now it's almost like packaging. So I'm one of the few peo- World that stepped up with a lot of cash impossible to make them in eight. It's ple in town who won't pay package com- and said, "We'll buy our way into the TV nobody's fault, and I'm not criticizing the missions. business." And they did. crews. But what happens is, they get used to a little slower pace. THE COMPANY'S FUTURE LABOR UNIONS This company is not going to go out of I've gone to the unions and asked for CUTTING COSTS business. We are strong. We are commit. help, and they said no. Don't get me We're trying to cut overhead as much as ted to our direction and we have financing wrong-I'm not anti -labor.Ireally we can. We're consolidating, getting rid and we're not standing on the edge of the believe in these people. I'm a member of of real estate. We're also thinning out the cliff. But if I kept going the way I was, five or six guilds myself. But they don't payroll. That's always painful. Some of it then I would have produced myself out of have any obligation to give me any help. has been attrition and some of it has been business. I view this, in a strange way, as We have signed contracts, and I live up to cleaning house. I think we were fatter a healthy thing. It has forced us to com- my agreements. If this company goes than we needed to be. But at a certain pletely re-evaluate our situation, and to bankrupt, another one will step in and point you say, "Wait. We're in some trou- challenge our executives. You can throw start hiring. ble here." money at anything, but if you don't have the money, then you've got to solve it COMPENSATION MERCHANDISING with creativity. I don't think it should be just below -the - I don't try to create shows for their back line people who suffer cutbacks. There end merchandising potential. Frank THE MESSAGE should be a realistic pay scale for all of us. Lupo and I didn't create A -Team so we Please, Hollywood. We just can't go on But you know what happens: you've got could sell dolls and trucks. We created it like this. We have to address our financial 23 -year -old guys making more than the because we thought it was a funny idea problems. We must come to grips with president of General Motors. At a certain for a show. The trucks and dolls came the fact that the industry is not a cash cow point, some reality has to come into all of later. I don't think about demographics any longer. It's no fun to hear, but this this. Yet those high -paid writers can turn when I create a show, either. Do you business is headed down the same road around and say that I'd just have bigger think Norman Lear worried about that that Detroit was on. If we don't do some- profits if I could hire them for $25,000 a when he created All in the Family, about thing, a lot of people who used to be in the year. And of course, that's true. Still, a bigot who talked about "hebes" and film business are going to be selling we've got to see everybody tighten up "hikes"? No. You've got to do what you shoes. I don't want to see this business some, and that means above -the -line peo- think is going to entertain people, and leave L.A., yet I'm one of the first guys ple as well as below. along the way, hopefully, you'll get shows out of here. I have to go because I'm also that have back end appeal and merchan- the guy with the least financial strength, MAKING MORE FOR LESS dising potential. so this thing hits me faster than it hits I can't just stay here and scale down my somebody else. Still-you show me how costs. I don't want to make bad pictures. PACKAGING FEES to make a show in Los Angeles for what I And that's what you're talking about: pic- If a package is really a package, and an make it for in Canada, and it shoots tures that are under -covered; pictures agency is submitting a writer and a star here.

CHANNELS / JULY/AUGUST 1987 71 Where the Biggest Brands Spend Their Ad Dollars The big brands-the ones that must saturate the country with their KEY ads-find television so effective that many put 80, 90 or even 100per- 0-2 40-59 cent of their 1986 ad dollars into TV rather than print, radio or other media, according to an annual survey of the top 200 brands by Marketing & 3-19 60-19 Media Decisions magazine. Networks typically get the largest share of TV 20-39%80-100 spending, but spot advertising is the choice of regional auto -dealer associa- Percent of brand's total ad spending in 1986 tions and some fast-food chains. Breweries have led the way into national cable networks-several investing 5 percent or more of their ad budgets.

Total ad Percentage of total spe ding Total ad spending on Percentage of total spending Most -advertised brands of 1986 spendi all media on on on on total Most -advertised brands of 1986 all mediangon on on on on total (millions) networkspotty cable TV (millions) network spot TVcable N . , 1 McDonald's $329 98 39Ritz 100 cigarettes 40 'MOM 0 2Burger King 111 91 40Miller Genuine Draft beer 40 15 1 91 3Budweiser Beer 116 41Red Lobster Inns 38 1 < 1 96 4 AT&T long-dist. (residential) 107 1 1 67 42ABC-TV Network 38 <1 2 5 Ford local dealers 95 I 66 0 43Sears misc. brands 38 . < 1 71 6Miller Lite Beer 88 69 12 3 84 44Sears household brands 31 1 45 .._ 7 Kentucky Fried Chicken 84 96 r 45Toyota local dealers 37 91 0 97 8 United Airlines 83 .. 2 53' 46Chevrolet cars and vans 37 - - < 1 9Vlendy's Restaurants 82 97 41 Domino's Pizza 37 53 1 92 10American Airlines 80 46 48Pontiac dealers assns. 37 0 97 0 91 11 Chevrolet local dealers 80 51 49Nuprin tablets 36 1 2 86 12Pizza Hut 13 98 50Columbia Record & Tape Club 36 0 1 0 13American Express cards 12 517 -Up 36 55 23 2 80 14Miller High Life Beer 70 52Coca-Cola (regular) 36 37 5 15Budweiser Light Beer 63 87 53Discover credit card 35 62 < 1 7 16Delta Airlines 63 21 ' 1 7 54Diet Coke 35 53 93 -1 11 Eastern Airlines 60 1 24 55Nabisco cookies 35 84 2 96 . , 18IBM personal computers 56 56NBC-TV Network 35 <1 <1 19Taco Bell restaurants 56 87 90 51Toyota compact trucks 35 50 3 75 20U.S. Army recruiting 55 58 CBS -N Network 35 i 0 1 1 21Ford dealers associations 53 0 71 59TV Guide 34 3 80 22Lee artificial nails 52 11 100 60Diet Pepsi 34 < 1 90 23Pepsi -Cola 52 73 2 83 61Gallo wines 34 1 99 24Michelob Beer 51 5 80 62Hardee's Drive-ins 34 87 0 87 25Hasbro toys 50 94 t4 100 63AT&T corporate 33 26Nissan compact trucks 50 7 64Coors Light Beer 33 2 91 27Nissan dealers associations 49 0 98 65Michelob Light Beer 33 8 86 28Advil pain -reliever tablets 46 87 1 90 66Honda Civic 33 29Midas Muffler ma 42 85 61Vantage King cigarettes 33 30True Value Stores 42 68Northwest Airlines 33

31Ford Taurus 42 6 1 69Chevrolet dealers assns. 32 0 87 32Coors Beer 42 2 85 70 Slice regular soft drinks 31 1 88 33AT&T long-dist. (business) 41 19 86 11Battles & Jaymes coolers 31 85 <1 97 34AT&T intl. long-distance 41 42 2 4 12General Motors corporate 31 42 9 1 51 35Kroger food stores 41 81 1 93 13People Express Airline 30 0 4 0 4 36American Dairy Assn. (milk) 40 1 91 74Duracell batteries 30 19 6 85 37Toyota dealers assns. 40 91 91 75Mercury Sable 30 55 38Oldsmobile dealers assns. 40 91 91 Source data from Broadcast Advertisers Reports and leading National Advertisers compiled by &cams in its July 1937 issms

72 CHANNELS / JULY/AUGUST 1987 Katz American Television representing major market affiliates Katz Continental Television representing medium and smaller market affiliates Katz Independent Television representing independent stations exclusively rPat

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