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With Caution OCahners. $4.95 FCC proceeds with caution SPECIAL SUPPLEMENT * * * * * * * * * *** * * * * ***3 -DIGIT 591 111111111111 d111111WIIllUI 6I1I1I 11111111111 BC07518- AUG99 REGB 338 JOHN C aHNSON KTVq -TV 265 WATEJT09 WAY BILLINGS, MT 59102 -7755 www.americanradiohistory.com Ad . .,. ;;.. ;. www.americanradiohistory.com making. -Entertainment Weekly WORLDWIDE EYEMARK PANTS Entertar. LBS Iminammin www.americanradiohistory.com www.americanradiohistory.com Broadcastlg&Cable Nov. 16,g1998 TOP OF THE WEEK / 4 FCC moving, cautiously, SRO for Fox IPO Investors rally to buy shares and on ownership News Corp. earns $2.8 billion from the stock offering. / 4 FCC Chairman William Kennard Gore commission plan to move forward is pushing for action on a long - Despite objections front broadcasting and cable interests. awaited review of the agency's the Gore commission plans to recommend that digital broadcast ownership rules by broadcasters who fulfill minimum public interest standards year -end. But any movement should receive cable carriage. / 24 probably will be a few small steps rather than a major rollback of For more late -breaking news, see 'In Brief' regulations. / 27 on pages 80-81 HALL OF FAME BROADCASTING / 50 Adding to the Honor Roll BROADCASTING & CABLE Judy presides over highest court Worldvi- inducts I l new members into its Hall of Fame at a black tie skm's half-hour Judge Judy. is burning up the syndication gala in New York. / 43 market, with ratings up 100'; from last year. /50 SRI seeks SMART investors Statistical The future is now Research Inc. has retained Veronis Suhler to find potential Dawn of This week's issue contains a Digital investors for the company's new SMART national TV rat- 6() -page suppplement pro- ings service. 50 Televis. claiming "The Dawn of Digi- / tal Television" and including CABLE / 56 special coverage from the A &E unveils digital networks Its first offerings - vantages of BROADCASTING & The Biography Channel and History Channel International - CABLE, Digital Television and launch today on TCI's digital Headend in the Sky. / 56 TWICE (This Week in Con- sumer Electronics). It is pub- TCI leans forward, looks ahead MSO meets lished coincident with the with advertisers, agencies to ponder the potential of interac- Monday (Nov. 16) celebra- tivity over its ICI Digital Cable. / 56 tion of the new medium by TECHNOLOGY / 61 B &C' and 19 major incusuy sponsors: ABC, CBS. Chyron, CBS broadcasts NFL in hi-def It transmits the DirecTV., Faroudja, Harris, Kodak, NBC, Panasonic, PBS, New York Jets vs. Buffalo Bills gaine to seven stations RCA, Runco, Samsung, Sarnoff, Sharp, Silicon Graphics, - the first of four such NFL telecasts on tap this season. 61 Sony, Tektronix and Zenith. / Follows Page 42 / Changing Hands 65 Editorials 82 In Brief 8( CNN streams Bill Gates Using Virage software, Classified 67 Fates & Fortunes 78 Nielsen Ratings..54, 58 the CNN Website lets PC users search and download the Closed Circuit 18 Fifth Estater 76 Station Break 51 Microsoft CEO's testimony in the Department of Justice Datebook 75 Get w /the Program .52 Washington Watch 26 antitrust case. / 63 'N.h! & L.A. Forgive or Forget BEATS Judge Judy In Women 18 -49 Hosted By Mother Love ...t saw. oa 1. IYtlnv. NY: kz.s LA 1.1 a.n NOVEMBER 16, 1998 BROADCASTING & CAREE 3 www.americanradiohistory.com imicasthm TOP OF THE WEEK FOX ENTERTAINMENT GROUP SRO for Fox IPO PRIMARY ASSETS Fox Filmed Entertainment Investors rally to buy shares; News Corp. (theatrical movies) earns $2.8 billion from offering Twentieth Century Fox TV By Steve McClellan SEC that it would (TV production) use the proceeds of Twentieth Television What market turmoil? the deal to reduce (TV syndication) That's basically what the its outstanding debt Fox Stations Inc. folks at News Corp. asked of about $9 billion. Wall Street last Tuesday after they It also may buy Fox Broadcasting Co. launched the biggest -ever media -relat- back some of its t Fox Family Worldwide ed initial public offering. Investors gob- stock, company (49.5 %) bled it up and then some: It was over- executives told ana- Murdoch couldn't Fox/Liberty Networks (50 %) subscribed by almost 50 %, with News lysts last week. It talk last week, but Corp. reaping $2.8 billion for just under has a $1 billion he could certainly Fox News Channel smile. 19% of the Fox Entertainment Group. stock buyback pro- Sports assets, including Los News Corp. officials, restricted from gram and already has purchased some Angeles Dodgers talking for the next two weeks, must feel $300 million worth of its stock. "Nothing pleased. "In the short term, is going to change with they definitely achieved respect to how they use the maneuvering on the regulatory front to their goals," says Blair money, so now it's just a expand the company's 22- station port- Treisman, senior research question of growing share- folio, which already reaches the FCC analyst at Midtown holder value over time," limit of 35% coverage of the U.S. But Research Group, New Treisman says. Fox has proposed investing up to $150 York. "They got the deal News Corp. Chairman million in minority -owned stations in done in a stinky IPO envi- Rupert Murdoch told ana- exchange for a waiver of the cap. ronment, within the price lysts last week that no News Corp. also wants to expand its range they had been hoping huge acquisition deals are sports franchise holdings. Earlier this for. And it has held up in the in the works. But the year it bought the Los Angeles first two days of trading." company has a lot of buy- Dodgers, and there's a deal in the On the first day of trad- 'Ally McBeal' is one Fox ing power -including works to buy one of the UK's top rugby that makes its asset for $1 billion. ing, Fox stock climbed $2 to stock attractive. $2.1 billion in cash on teams $24.50. By midday Friday, hand; another $2 billion News Corp. also has an option to the stock fell 3 %, to $23.88, but still well plus in stock and cash from the soon - acquire 40% of the Los Angeles Kings, above the initial asking price. "People just to -close sale of TV Guide. and added just under 10% of the L.A. Lakers, and decided to step back and not overpay in power on top of that. a 20% stake in a new arena -the Sta- the short temi," Treisman says. High on News Corp.'s shopping list ples Center -that will host both teams. News Corp. said in filings with the are TV stations, although it will take The company says it intends to excer- cise all those rights. While the Fox IPO is a big hit, in- CBS ready to EyePO vestors punished parent News Corp. last Buoyed by Fox's success, CBS has priced its IPO for Thursday (knocking its stock price down 16% of its radio and outdoor assets under the Infinity $2, to $26.31) for an unexpected drop in 18 %, to Media banner and says that it expects to raise a tad first -quarter profits. Profits fell under $3 billion. The company begins a road show $196 million -due largely, News Corp. next week and expects to launch its offering in early or says, to start-up losses for Fox Family Entertainment, Fox Liberty Sports and mid - December. ventures. Is there any reason to think that CBS's IPO will be any less international satellite Revenue was up I2 %r, to $3.2 billion. successful than Fox's? "None that I can think of," says Bishop Cheen, media owned TV sta- and entertainment analyst for First Union Capital Markets. That is, he clari- But the company says the primarily fied, no reason based on issues concerning the company or the offering. tions posted lower earnings, the summer. What's impossible to predict these days, say Cheen and others, is what due to the GM strike during was result outside forces may or may not spook the market in December. The Iraqi Revenue at the network up as a in upfront ad sales. conflict, the impeachment process, actions taken (or not taken) by Alan of higher pricing Peter Chemin told Greenspan and the Fed all are factors that could prompt investors to reach News Corp. COO remains "quite for their checkbooks or for their brokers (with sell orders). Developments analysts the company that it will break even on the in Asia, Russia and Latin America continue to influence stateside invest- confident" and ad ment decisions. -Steve McClellan rights for NFL games. Ratings sales are up this season, Chemin said. 4 BROADCASTING & CABLE / NOVEMBER 16, 1998 www.americanradiohistory.com !MIS, Lt: AIR AMERICA IS THE TOP -RATED NEW ACTION HOUR BURNING UP: NY /WWOR CHI /WPWR MIA /WFOR CIN /WXIX /.1 AND AIR AMERICA IS GAINING ALTITUDE IN: LA /KCAL ATL /WSB SEA /KING CLE /WUAB DEN /KTVD BLT /WBFF (212) 541 -2800 5 (310) 656 -1100 3121 444 -2063 (615) 354 -1782 ericatv.eom FRANKLIN f WATERMAN PEARSON flank based on HH Rtg of new Mortal Korebal. VIP, Stargate. WORLDWIDE sed on HH rlcreases T E L E V I S I O N .5 U -17'1.'98 www.americanradiohistory.com TOP OF THE WEEK Game of Fox and mouse heats up Fox Sports is making moves on top sports franchise, Disney -owned ESPN By Joe Schlosser made up so far and so quickly." he race for sports supremacy in ESPN debuted in cable is heating up. and newcom- September 1979. John T er Fox Sports Net is stealing Walsh, ESPN senior headlines from longtime frontrunner vice president /execu- ESPN.
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