Copyright by Alisa Perren 2004 The Dissertation Committee for Alisa Hayley Perren Certifies that this is the approved version of the following dissertation: Deregulation, Integration and a New Era of Media Conglomerates: The Case of Fox, 1985-1995 Committee: Thomas Schatz, Supervisor Richard Lewis Neil Nehring Horace Newcomb Sharon Strover S. Craig Watkins Deregulation, Integration and a New Era of Media Conglomerates: The Case of Fox, 1985-1995 by Alisa Hayley Perren, B.A., M.A. Dissertation Presented to the Faculty of the Graduate School of The University of Texas at Austin in Partial Fulfillment of the Requirements for the Degree of Doctor of philosophy The University of Texas at Austin August 2004 Dedication For my parents Acknowledgements The support provided by my family and friends made the dissertation- writing process far less painful. Particular thanks go to Caroline Frick, Karen Gustafson, Lisa Hartenberger, Sunny Nguyen, Jennie Phillips, Gabe Rupertus, Valerie Wee, and Kate and Alex Wurm. Their food sustained me and their flowers cheered me up. I am so grateful for their willingness to listen to me talk on and on about my research. Thanks also to Tanya Chmielewski, Jennifer Holt, Anh Nguyen, and Michael Tolfo. The feedback and guidance provided by Richard Lewis, Neil Nehring, Sharon Strover and Craig Watkins is greatly appreciated. Their comments have been helpful and will continue to be used as I further develop my ideas about Fox and the media industries. Special thanks to Horace Newcomb for reading various drafts of this project and suggesting ways to refine my argument. This project would not exist without the support of Thomas Schatz. From my first semester as a graduate student, when I took his History of Broadcasting course, he has served as an amazing mentor, adviser and editor. He has challenged me and encouraged me in countless ways. I cannot thank him enough. Finally, thanks must go to my parents. While they must have doubted at times whether this project would ever be done, they nonetheless remained 100% behind me. It is for this reason that I dedicate the project to them. v Deregulation, Integration and a New Era of Media Conglomerates: The Case of Fox, 1985-1995 Publication No._____________ Alisa Hayley Perren, Ph.D. The University of Texas at Austin, 2004 Supervisor: Thomas Schatz In 1985, the film and television industries began a decade-long process of realignment. In this dissertation, I show how News Corp., primarily via its subsidiary, the Fox network, played a central role in redefining the relationship between motion picture studios and television distributors from 1985 to 1995. I analyze how the company successfully launched and expanded Fox Broadcasting by cultivating productive relationships with a variety of different stakeholders including advertisers, the creative community, independent television stations, regulators, cable operators, cable program services, and the press. This study uses trade publications and mainstream press reports to chronicle and analyze a period that has been understudied by scholars. Through the use of these resources, I describe the specific regulatory, economic and vi technological conditions enabling the emergence of a fourth network. This discussion is followed by an analysis of how Fox further shaped these conditions while also introducing a number of significant programming, marketing and distribution innovations to broadcasting. Through Fox’s heightened emphasis on targeting specific demographics, its aggressive pursuit of a brand identity and its development of niche-oriented television programming, the company redefined network television along with the larger media landscape. Indeed, Fox, along with parent company News Corp., initiated a new era for media conglomerates. This era was marked by network-studio integration and the increased economic and marketing value of network television programming to entertainment companies. vii Table of Contents List of Tables........................................................................................................... x List of Figures ........................................................................................................xi Chapter One: Introduction....................................................................................... 1 Survey of Literature ....................................................................................... 9 Revisionist Media History and Historiography............................................ 17 A Brief Survey of Network-Studio Relations .............................................. 32 Structure of the Study: A Chapter Breakdown............................................. 39 Chapter Two: Stumbling Toward a Fourth Network, 1955 – 1985 ...................... 46 A Series of Unintended Consequences: The FCC and the Creation of a Three-Network System ....................................................................... 49 Mark Fowler’s FCC and Reagan-Era Deregulation..................................... 59 New Highs for the Broadcast Business ........................................................ 74 False Stops and Starts: Momentum Builds for a Fourth Network ............... 80 Chapter Three: Developing a New Network, March 1985 – January 1987.......... 84 The Media Industries in a Time of Change.................................................. 87 The Rise and Fall… And Rise of a Media Conglomerate: A Brief History of Fox ..................................................................................... 97 Assembling an English-Language Empire: Rupert Murdoch and News Corp................................................................................................... 111 Creating a “Fourth” Network ..................................................................... 122 A Ratings Failure, A Branding Success: The Late Show Starring Joan Rivers................................................................................................. 133 Chapter Four: Staking a Claim on Prime Time, February 1987 – December 1989............................................................................................................ 140 Difficult Times for Regulators and Media Conglomerates Alike .............. 143 The Pursuit of a Suitable Prime-Time Programming Slate........................ 153 viii Refining Strategies, Defining Audiences: Fox, News Corp. and the Media Industries Prepare for the 1990s............................................. 173 Chapter Five: Finding a Niche with The Simpsons, January 1990 – February 1992............................................................................................................ 181 The Emergence of a Television Phenomenon: The Case of The Simpsons183 Fighting Off a Financial Freefall: The Media Industries in a Time of Crisis.................................................................................................. 208 When Fox Campaigns, the FCC Waivers: The Beginning of the End of Fin-Syn.............................................................................................. 224 The End of an Era: The Departure of Diller, the Arrival of a Network ..... 235 Chapter Six: Struggles to Become a “Full-Service” Network, March 1992 – November 1993 .......................................................................................... 242 Clear Skies Ahead for the Studios and Broadcasters ................................. 244 Being Chased out of Late Night… And Other Dayparts ........................... 256 Chapter Seven: Fox, Football and Franchise Television, December 1993 – August 1995 ............................................................................................... 272 Tackling the NFL, Fox-Style ..................................................................... 275 A Booming Station Business Once Again ................................................. 286 The Importance of the Prime-Time Entertainment Franchise: The Growth of The X-Files, The Syndication of The Simpsons .............. 297 Where Fox Goes, Everyone Follows: The Reinvention of Old Networks, the Invention of New Ones................................................................ 313 The Dawning of Megamedia? .................................................................... 327 Chapter Eight: Conclusion .................................................................................. 340 Works Cited......................................................................................................... 367 Vita….................................................................................................................. 427 ix List of Tables Table 1: Top Companies in Electronic Communications, 1983 ......................... 361 Table 2: Top Companies in Electronic Communications, 1986 ......................... 362 Table 3: Top Companies in Electronic Communications, 1989 ......................... 363 Table 4: Top Companies in Electronic Communications, 1992 ......................... 364 Table 5: Top Companies in Electronic Communications, 1995 ......................... 366 x List of Figures Figure 1: The Rise and Fall of Independent Television Stations ........................ 360 xi Chapter One: Introduction During the summer of 1995, a series of major media mergers and acquisitions took place. This “merger mania” started when Seagram purchased MCA-Universal in March.1 It accelerated in July, when Westinghouse bought CBS and Disney bought ABC. And it continued into August, when Time