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he Newswkly of Television and Radio Publ 01 125 tits. .o 64t r 1995 A Cahners ..,.. hútili11uiàm 3 0628 0010061661 Nowiltrr-, Home Free ign Owners 7 hie Tel Cäbje an Rates cast Owners Their Own 5 -DIGIT 54702 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII REG353 BC16404OWIEB98UNIV LIBRARY 4(0_0 PERIODICALSLS DEPT EAU CLAIRE, WI 5470Z ;- m the people who brought about a revolution in video retailing es an evolution. Stay tuned to discover all the things we're doing to help our mates make more money with HSN$ than they've ever made with us before L For móre information, call HSN Affiliate Sales & Marketing: Corporate Headquarters 813 -572 -8585, ext 7399. Northeast egional Office 201 -941 -2399. Western Regional Office 303 -220 -9626. Fast Tralc MUST READING FROM BROADCASTING & CABLE NCTA '95 The cable industry heads to the National Cable Television Association convention in Dallas this week with a full plate of news and regulatory issues to digest. work with the agency to insure their ability to compete in the telephone business and in the House telecom bill coming world of digital video. 14 favors cable True to / their pro- business roots, Back to basic Expanded basic packages are House Republicans have driving much of the distribution growth for small unveiled legislation that and midsize networks. And distribution gains are would open the Reps. Jack Fields (I) and Tom Bliley expected to continue as more addressable boxes are telephone and cable sponsored House telcom reform. / 6 shipped to cable households and as cable- system businesses to operators settle into the many mergers and competition-while sweeping away restrictive cable acquisitions that have taken place in the past year. / 20 and broadcasting regulations. / 6 New channels The list of wanna -be cable networks FCC's Hundt: Back to the future FCC continues to expand with programing ranging from horses Chairman Reed Hundt will call on cable operators to to CEOs. For a complete list see page / 28 'OP OF THE WEEK `Hercules' meets Broadcast ownership limits get own bill its match Sweeping broadcast deregulation that would repeal Hercules spin -off Xena: War- most TV and radio ownership rules has been offered in rior Princess seeks to deliver the House. Democratic opposition forced the issue into the high- action, high- produc- a bill separate from telecommunications reform. /10 tion elements that have made MCA TV's Hercules the most CBS lags in sweeps successful new action hour of Buffalo Girls rode into the sunset with a 17.8 rating/ 28 1994 -95./ 54 share, but that wasn't enough to vault CBS out of third RADIO Will 'Xena' complement place in the May sweeps. / 11 'Hercules'? 54 Group owners gain Murdoch home -free Most radio groups are reporting revenue on foreign ownership gains that top 10% for the first quarter of the year, traditionally While the FCC has found regarded as the slowest. 66 Fox Television Stations / in violation of the com- BUSINESS mission's foreign owner- U.S. TV boosts News Corp. profits ship limits, it invited Rupert Murdoch (second from Rupert Murdoch to file Boosted by strong gains in its U.S. television division, left) and his family enjoyed News Corp. reported a 34% gain in operating profit for front -row seats during FCC for a retroactive waiver the first 7 debate on Fox ownership. Wife based on his 10 -year quarter of this year. / Anna (I), daughter Elisabeth and her husband, Elkin Pianim. record of serving the Public broadcasters seek trust fund were present. / 113 public interest. / 16 Public broadcasters want Congress to set up a PROGRAMING $3 billion -$5 billion Public Broadcasting Trust Fund Nods for Nielsen to wean them from federal funding by 2000. The money would come, in part, from commercial Nielsen has developed a new method for recruiting broadcasters, who have raised howls of protest "peoplemeter" households that boosts the cooperation at the suggestion. / 78 rate for the national household sample. / 54 4 May 81995 Broadcasting & Cable "We will have absolutely no difficulty whatsoever in preparing a compelling public interest showing." -Rupert Murdoch on the FCC's likely waiver of foreign ownership rules for Fox MAY 8, 1995 Cover Story: Cable's new age Cable ignores competition invitation Amos (Bud) Hostetter is chairman Cable's reluctance to take advantage of the FCC's invi- of the third -largest cable company, tation to prove that potential competition was affecting Continental Cablevision. He's look- its business plans is surprising, FCC officials say. Proof ing not only to defend his current of "effective competition" would end rate regulation for business but to take over some other extended basic services. / 87 ones. "We need to think two -way, switched and digital," he says. / 32 Cable chief deflects criticism Cover photo by Rick FriedmanBlack Star FCC Cable Bureau Chief Meredith Anstrom works around Bud Hostetter thinks Jones has faced a barrage of criti- Continental also cism aimed at her and the bureau `profound disagreements' needs to move into software. / 33 and rules she personifies. But now, between cable, FCC the FCC has a new get -along atti- The cable industry has learned to live with rate regula- tude, exemplified by its "social tion and has moved on to other issues, says NCTA Pres- contract" with Continental ident Decker Anstrom. On the eve of the association's Cablevision. "If [other operators] annual convention this week, Anstrom also discusses want to come in and talk to us, we Meredith Jones has cable's legislative goals and its battle with telcos over are interested in talking to them," opened the FCC's video dialtone. / 42 says Jones. / 90 doors to cable. / 90 WASHINGTON venture's participants facing a tight schedule for reversing the FCC decision or implementing an alter- Mergers get Senate 92 antitrust attention native plan. / Some senators are wor- Microsoft closer ried that telecommunica- to interactive TV tions reform that would Telem permit joint ventures and While many companies are getting cold feet about investing in the deployment of mergers between tele- interactive television networks, Microsoft is plunging in phone and cable compa- SMhm Thurmond saus Wen.rrahla headfirst, collaborating with Medio Multimedia to nies might cause anticom- rnergefs may not be In the best develop interactive TV services from Medio's CD -ROM petitive problems. / 86 interest of consumers. /86 and online development efforts. / 70 Small systems: a matter of numbers A cable approach to online The FCC is putting the finishing touches on an order TCI's investment in Microsoft's new that would greatly increase the number of cable sys- online service will help the cable tems and multiple system operators entitled to regulato- giant leverage its television pro- ry relief for small companies. / 88 graming properties and its vast net- work of cable operations. 74 TECHNOLOGY / GTE's video dialtone USA Networks lays Primestar's miles -high problem claim to the place gets green light for science-fiction The FCC has reclaimed satellite frequencies that cable information in The The FCC has given GTE the go- consortium -owned Primestar planned to use to shift Dominion. / 70 ahead to roll out its video dialtone from a medium -power to a high -power service next network in four states: Virginia, Florida, California and year. To add to the dilemma, Primestar's current satel- Hawaii. / 76 lite is due to run out of fuel next year. That leaves the Changing Hands 81 Editorials 114 For the Record 105 Classified 95 Fates & Fortunes 110 In Brief 112 Datebook 108 Fifth Estater 109 Nielsen Ratings 64 Broadcasting & Cable May 8 1995 5 Chief sponsors of telecommunications -reform legislation Jack Fields and Tom Bliley mustered some Democratic support for their initiative. L -r: Mike Oxley (R- Ohio). Dan Schaefer (R- Colo.). Rick White (R- Wash.). Anna Eshoo (D- Calif.). Dennis Hastert and Thomas Manton (D-N. Y.) House GOP delivers deregulatory goods True to their pro -business roots, Republican members of the House Commerce Committee last week unveiled legislation that would open the telephone and cable businesses to competition while sweeping away restric- tive cable and broadcasting regulations. Proponents now must battle the White House and Democrats who believe some of the proposed reforms go too far. As with most things in Washington, the final victor is likely to he compromise. Bill would gut cable television rate rules By Kim McAvoy cials are unhappy with the cable lan- National Cable Television Associa- The House Republican version of guage. "The bill deregulates cable tion President Decker Anstrom says telecommunications -reform operators prematurely and will result the bill "provides a good blueprint legislation is just about every- in cable rate increases for millions of for a competitive telecommunica- thing cable operators hoped for, Americans," Commerce Secretary tions marketplace." promising to provide substantial Ron Brown says. "Although cable didn't get every- relief from rate regulation and facili- Seven Democrats, including John thing we would have liked, and no tate their entry into telephony. Dingell (Mich.), the Commerce one ever does, this is a bill we can The bill would abolish rate regu- Committee's senior Democrat, support," says Stephen Effros, presi- lation of expanded basic tiers for signed on to the legislation. But Din- dent, Cable Telecommunications small systems upon enactment, and gell said he and some of the other Association. for other systems about 15 months sponsoring Democrats have reserva- The bill, H.R. 1551, would ease after enactment. The companion tions about portions of the bill. cable entry into telephony by pre- Senate bill doesn't go as far, retain- In addition to cable regulation, the empting state and local barriers to ing regulation of systems identified battle over long- distance telephony telephone competitors and requir- as "bad actors." could stall the legislation.