Broadcasting 61st FIRST IN TELEVISION CABLE RADIO SATELLITE CBS JOINS OVERNIGHT NEWS BATTLE / ' Q -j COMPRESSION: CHANNELS MULTIPLY FASTER THAN PROGRAMING /28 ._1 FCC TO SHIELD STATIONS FROM CANDIDATE SUITS / 49 o 71486 01890 2 Not really. But Empty Nest is the only one with the dominance and flexibility you need to succeed in any daypart. Empty Nest Available Fall 1993. Buena Vista © Buena Vista Television Television "Empty Nest is the only off-net sitcom available for the next ten years." cAyTrr OF ALABA,'.Broadcastingo sori7{ Dept L_ J @Ep C ° Shows that ABC has put on the air since new ownership took over the network in 1986, including MacGyver' (left) and Prime Time Live' (right/ may not always win their time period. But their lower costs (a trend reflected at the other networks) have proved a particular boon to the company as advertising expectations have also been lowered. Programing costs at ABC this year were pro- jected at $1.9 billion, an im- pressive sum, but one that repre- sents an annual increase in real- dollar terms of only 1% annu- ally since 1986. And if revenue growth returns, observers expect considerable upside because of the loweredprogram costs. ONE OF N'S BEST-KEPT SECRETS: NOW ABS, CBS AND NBC NAVE TAKEN THE BITE OUT OF PROGRAM COSTS By Geoffrey Foisie, ups and downs in the non -programing er way, how has the leadership at the Rich Brown and Joe Flint portion more or less balancing each three television networks controlled other out, programing costs have, it costs so well? The truth about programing costs would seem, increased very little, if at The lion's share of programing surprises even some network all. money still goes to Hollywood, but it is executives. Like outside observ- Several weeks ago, ABC made the now often targeted at less costly ers, they assume the programing bud- same revelation when Chief Execu- genres. During the 1985 -86 broadcast get is drawn ever upward by the pull tive Officer Dan Burke detailed the season, ABC had 50 hours of miniser- of a Cosby renewal, the bidding for a network's programing costs. Although ies- including two 12 -hour "novels for new sports contract or other big- ticket he intended to portray a network television" -compared with only 12 items. For the most part, the networks squeezed by costs, the facts Burke hours total in the 1990 -91 season. are happy to let stand that misimpres- presented showed instead that ABC's In the networks' salad days, there sion: in lobbying or negotiating it helps total programing costs since 1986 was also a richer mix of hour -long them play the aggrieved party more have increased at a compound annu- shows, including Dynasty, Dallas and convincingly. al rate of 3.9 %. Discounted for infla- other prime time soaps. Now, the gen- But the truth, according to some tion, that nominal -dollar increase - eral impression is that the types of recent evidence from the networks, is from $1.64 billion in 1986 to $1.98 shows being put forward are less am- that programing costs really have not billion in 1991 -amounts to a real - bitious. increased that much, if at all. First, dollar increase of only 1% per year. The low -cost genre is best repre- CBS senior vice president, finance, How can the networks square their sented by reality shows, in all day - Peter Keegan, told some station ex- tightly controlled budgets with their parts. In 1986, ABC was running, be- ecutives that, excluding sports rights complaints about budget- busting Hol- tween 11 a.m. and 12:30 p.m., a fees, total costs at the network since lywood contracts, sports rights fees sitcom, a game show and a daytime 1986 have been roughly flat. With the and news event coverage? Put anoth- soap. Either of the first two shows Broadcasting Dec 9 1991 3 TOP OF THE WEEK might have been comparable in cost ding wars. That still leaves 5% to 10% for an additional three years for about to the current infotainment offering of sports budgets represented by non - $7 million. The Home Show. But the incremental rights costs, but there, salaries are The reduction in staffing at the cost of the third half -hour of The being kept in check. For instance, news divisions has been well report- Home Show pales in comparison to second -team announcers no longer ed. NBC News has cut its staff from the soap that aired in 1986, Ryan's make $500,000 annually, said Jim approximately 1,300 in 1986 to about Hope. Bukata, senior vice president, produc- 1,000 today; the downsizing at CBS is For those expensive shows still tion, Trans World International. said to have been greater. Each of the airing, the networks admit to being Similarly, network news divisions network news divisions has lost about stingier on what portion of produc- have managed to keep costs down for 100 positions in the past year alone. tion costs they are willing to shoul- correspondents. A former top network Despite all their cost -containment der. Said William Klein, CBS Enter- executive said a number of those top success, one executive suite denizen tainment senior vice president for correspondents are making roughly says there is still a problem. Although business affairs: You hear howling 60% of what they were making five costs have been kept in check since and pain that network license fees years ago. If reports are correct that 1986, that earlier year was already haven't kept pace with costs. In fact, NBC last week renewed Bryant Gum - "too high a base." One consultant it is hard to argue strenuously with bel's contract for roughly the same who had access to ABC's financial that assertion." terms as before, then the networks statements said program costs in As for sports costs, it seems a nev- appear to be successfully keeping 1979 were only 64% of revenue. By er- ending truth that the best way to costs down on anchor salaries as 1987, they had risen to roughly three - avoid such costs is to stay away, as well. NBC News, it was reported, ex- quarters of net revenue, about where ABC has largely done, from the bid- tended the Today anchor's contract they remain today. CAMERAS IN THE COURT SORT OF Rape coverage draws big audience; technical glitches mark opening days By Rich Brown testimony continued throughout the week. The cable network on Monday As the William Kennedy Smith averaged a 1.1 rating and 3.1 share trial got underway last week, on a 24 -hour basis among cable NBC News had some unex- households, representing 625,000 pected company in revealing the iden- households. Its highest opening -day tity of the alleged rape victim in the rating was from 4 p.m. to 5 p.m., when case. While NBC News stood by its the network attracted a 2.5/6.2, or controversial decision of intentionally 1.46 million viewers. identifying the woman, CNN acciden- WlllNm Kin ;th Trial CHIA. By Wednesday, CNN's ratings had tally revealed her identity through grown to a 1.7,5.3 on a 24 -hour basis, some technical slip -ups. representing more than 1 million Identity of alleged rape victim was protect- The biggest problem in protecting homes. From 5 p.m. to 6 p.m., the ed during live TV coverage that drew big the alleged victim's identity came from audiences for CNN and Court TV. network had a 5.1/11.4, representing a gray dot that was intended to cover more than 3 million homes. The the face of the woman as she testified has no allies on the issue. Wednesday ratings more than dou- last Wednesday. The dot had been "If the name is relevant in the story, bled the 0.7 rating that the network arranged by the court as a way of then we should have no hesitancy has averaged on a 24 -hour basis dur- shielding her image on the press pool about using it," said David Bartlett, ing the current quarter. feed. But National Teleproduction, the president, Radio -Television News Di- Court TV did not have ratings on its company that was brought in to oper- rectors Association. "I agree entirely gavel -to -gavel coverage because ate the dot, failed to keep up with her with [NBC News President] Michael Nielsen does not rate networks with movements and revealed her face to Gartner that we are in the news dis- under 10 million subscribers, accord- a national live audience via CNN. To semination business and not the ing to a spokesman for the cable net- avoid further slip -ups, the cable net- news repression business. I am very work. But a Warner Cable system in work on Thursday covered the gray impatient about the journalist as soci- Cincinnati, which is able to monitor dot with a larger blue dot. ologist." audience viewing, reportedly showed CNN slipped earlier in the week by Press controversies aside, the trial Court TV ratings more than tripling the accidentally telecasting the alleged proved to be a boon for cable net- numbers it had shown during the pre- victim's name during trial coverage. works CNN and the fledgling Court vious week. Court TV, which is the Most media organizations, includ- TV. Both managed to draw away pool camera for the trial, has avoided ing CNN, have taken strong positions some of the weekday audiences with problems in revealing the alleged vic- in not identifying the alleged victim.