www. broadcastingcabble.. cons /7 [ 7z L/ U U $4.95 ringThe Newsweekly of Television and Radio Vol. 128 No. 20 67th Year 1998 A Cahners Publication able The Give and the Take of TV NEWS AGENT Malone flip -flops on HDTV, but one thing's clear: he hates 1080 I Upfront ad sales could be downbeat for broadcasters Full NÇTA coverage * * * * * **** * * * * * * * * * *3 -DIGIT IJrlillniullllmnLllmllmlllnlhllnl591 BC075184 AUG99 REGB 333 JOHN C JOHNSON KTVG -TV 265 WATERTON WAY BILLINGS, NT 59102 -7755 www.americanradiohistory.com IT'S TRUE. MEN 1 #1 WITH M18 -49 & M25 -54 ACROSS 4 DIFFERENT TIME PERIODS! #1 THURSDRIT S!RIPM #1 THURSDAY 8:30PM #1 MONDAY 9:30PM #1 MONDAY 8:00PM &uddcníy usan AVAILABLE FALL 2000 WARN! R BROS. TELEVBION Sown Nfl ML 9 9 7p - 0/1 9/96 - I/9/97, NUR 8 70 - 2/77/47 5/11/97 MON 970-6r27/9I.7,7/91 99091 800-9/22/97 2/9/9$ V. Wg Sled WMrt 900 www.americanradiohistory.com °1111-t- filteto. WARNER BROS. DOMESTIC -ALEVISION DISTRIWA ION A Time Warner 1,Its aiswent Company www.americanradiohistory.com http://www.broadcastingcable.corn Must Reading from FastPack May 11, 1998 TOP OF THE WEEK / 6 Down in upfront? Last year, the network upfront was up 5 %, to a record $6 billion. Last week. however, agency executives said that clients are tired of paying big increases for network audiences that get smaller each season. / 6 NCTA '98: Stand and deliver The cable industry entered Atlanta for Cable '98 riding high on successes with digital cable, high -speed data and telephony but departed with cautions against cockiness ringing loud and clear. /11 Telepictures talking in N.Y. Telepictures Productions which produces and distributes Dille- and Jerry is working show with rap star/actress Queen Berry The Rosie O'Donnell Show in the Big Apple, on a talk Springer have reached er Latifah and has a number of other undisclosed projects in the works on the East Coast. /14 'amicable' îompromise on the directicn of the contro- King World plans Short talker King World Productions is expected to announce next versial and ratings -high week an entertainment /talk show with Martin Short for fall 1999. / 15 COVER STORY The Give and the Take of Fox harpoons Lampoon The Fox Family Channel has deal with NCTA convention cover- signed an exclusive TV NEWS age begins on page 47. owners of the National Lampoon for development of prime time AGENTS programming for the network relaunch. / 47 The established and rising stars Local -into-local unlikely this year Legislation of TV news are usually backed by that would allow satellite TV providers to offer local sharp, aggressive and sometimes broadcast signals in local markets appears unlikely this nurturing representatives. / 26 year. according to congressional staffers. / 47 TECHNOLOGY /66 BROADCASTING / 34 WXYZ-TV buys Tek, NDS gear WXYZ-TV Detroit `City' spins to Paramount spin City is heading has purchased more than $1 million worth of Tektronix into syndication with Paramount switching, playback and automation gear and has also bought Domestic Television rather than an HDTV encoding system from NDS Americas. / 66 with anticipated distributor Buena Tele 172 Vista Television. 34 / Major League Baseball in power play online Networks shuffle New -sea- Major League Baseball plans to Webcast its entire lineup son schedules are still being ham- of games, with live audio available on its Website via a mered out before the official unveil- deal with AudioNet. / 72 ings a week from now, but here's a preview of the fall lineups. / 34 Changing Hands ....42 Datebook 84 Fifth Estater 83 Classified 74 Editorials 90 For the Record 82 Mel Karmazin finds admirers among 88 CBS stockholders. / 36 Closed Circuit 18 Fates & Fortunes....86 In Brief 4 May 11 1998 Broadcastirg & Cable www.americanradiohistory.com What could we possibly do Co make the best business news on TV even better? www.americanradiohistory.com Broadcasting & Cable Down in upfront? Predictions for network sales range from down to flat to slightly up By Steve McClellan working at one time with as little money the value -added promotion opportuni- as there is in the marketplace," Mandel ties. It's now just another media buy. Like the economy itself, the broadcast says. Typically, he adds, a handful of It's very expensive, and they're going advertising sector has gushed and clients with company -specific problems to have trouble passing their costs onto boomed for the past four years. But executes sell -offs. This year, he says, us. The network's [increased] license with a scatter market that is described by dozens of companies are doing it. "To fees aren't our problem." ad agency executives as very soft, and me that's a more troubling indication, Agency executives say that NBC and amid predictions of a flat broadcast net- because I think it's a sign of a growing Fox will lead the prime time upfront work upfront, some are wondering if the lessening of confidence in the market." market this year. Despite its well- publi- bubble is about to burst. cized woes, executives say Last year, the network EIGHT YEARS IN THE UPFRONT MAR KET NBC is in the best position to upfront was up 5 %, to a command increases, although record $6 billion. Last week, (Dollars in billions) not huge ones. Fox is seen as however, agency executives $6 a little stronger going into this said that clients are tired of upfront than it was a year ago. paying big increases for net- There is widespread agree- work audiences that get ment among agencies that smaller each season. Predic- ABC probably will not fare tions for this year's market $5 as well as last year, when it range from a gain of 1 % -2% did about $1.5 billion in to decreases of 1 % -2 %- upfront sales. "Their [audi- basically flat. ence] losses will be reflected "The prevailing thought $4 in the upfront," Lazarus says. is, how many businesses lose The network's prime time audience and raise prices ?" performance is down. But says John Lazarus, senior perhaps more to the point, vice president, TN Media, sources say, ABC's base cost New York. "Take any ser- $3 is only slightly below that of vice business -you can't NBC for most clients. "It's give someone poorer service '91 '92 '93 '94 '95 '96 '97 '98 clear that ABC, relative to its and then raise the rates." Source: Network and agency estimates competitors, is overpriced," That's exactly what the net- says the top buyer at a major works have been doing for many years, "The agency. "So that differential will have he adds. But now "that is coming to an prevailing thought to increase, and in a flat market you're end. Our clients' businesses are just as is, how many businesses going to pay more to NBC and less to tough as the network business, and our ABC. Clearly the market is not going clients are just as bottom lineoriented. lose audience and to be as forgiving [of ratings erosion] To continue to pay high increases for in the future as it has been in the past." lower delivery is counter to what these raise prices ?" Sources also say that more money will businesses are built on, and that will be flow to Fox and The WB in the coming felt in the marketplace this year." -John Lazarus, TN Media upfront, based on their performances this Sources report that second- and season. UPN also has a modest hit with third -quarter scatter prices are down as Another sign that advertisers are The Love Boat, Lazarus says: "You may much as 30% from upfront. "There's watching their purse strings more or may not like The Love Boat, but it's very little money out there right now," closely: Many companies are resisting doing a number. We have to pay atten- says one network source. the 18 % -20% price hikes that the NFL tion to that." Jon Mandel, senior vice rightsholders are asking for this year. Like ABC, CBS will be a tough sell president/director of national broadcast "There is certainly no reason to move this year. "For the past two years, peo- for Grey Advertising, sees another trend fast on the NFL," says one agency ple have looked at [CBS's] program- in this year's scatter market: Many more sports buyer. "That inventory is still ming and said, 'they have some poten- advertisers than usual are opting out of going to be there in August." tial hit shows, but most didn't pan previous commitments to buy time in the The buyer believes that the networks out,'" says one agency executive. second and third quarters. "I've never will have to reduce their price However, he adds, CBS Television seen as many sell -offs in this industry demands. "The NFL took away a lot of President Leslie Moonves still has 6 May 11 1998 Broadcasting & Cable www.americanradiohistory.com The Wall Street Journal on it. CNBC and The Wall Street Journal have just teamed up tc make TV's best global business news network even biter. Now get the insights of The Journal's awarc- winning reporters on CNBC as everts happen. And this is on top of last year's 68 percent ratings increase and 65 million subscribers. Now more than ever CNBC is the indispensable, essential, vital business information source. Watch it. In the morning before the market opens All day as the market unfolds After the closing bell to get a jump on tomorrow Weekdays 5:30 AM to 7:30 PM /ET 'THE WA LI.