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Growing Pains Could Stall $1B Business in '99

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Growing Pains Could Stall $1B Business in '99 March 1, 1999 iCahners. $4.95 www.broa AW r 1 T 4 .1 -Iv youlor . k n r ids TV Growing pains could stall $1B business in '99 *******,-***********3-BIG/T 591 Iililsliliuu d1161111161hidihluldihlul BC07518L AUG99 REGB 317 JOHN C .:-OHNSON KTVQ-TV 265 WATERTON WAY BILL:NGS, MT 59102-7755 Nor .NOT www.americanradiohistory.com Columbia TriStar Television Advertiser Sales Is Proud To Announce The Exclusive Representation Of DIRECTV For National Advertising Sales DIRECTV COLUMBIA TRISTAR TELEVISION ADVERTISER SALES a SONY DIRECTS Is a registered trackman, of . 01999 Cdumlata Tn Star Te le0sion Advertiser Sales 01 Rights Reserved PICTURES ENTERTAINMENT company DIRECTV, Inc a unit of Hughes Electrum. Corp . and Is used with perrnisson www.americanradiohistory.com Broadcasting&Cable M arch 1,1999 www.broadcastlogcable.com Volume 129 Number 09 TOP OF THE WEEK / 4 A high card in Primestar deal EchoStar's Charlie Ergen has become a player in DirecTV's takeover of rival. / 10 A hangover over alcohol ads Broadcasters fear sports lger, Born- defections if beer advertisers move money to other media. / 14 stein movin' White House unveils healthy dose of PSAs CBS on up Bob Iger and Fox pass on White House photo op for new campaign. / 17 was promoted at the Disney organi- FCC proposes upgrading LPTV If approved, up to 700 low- zation and Steve power stations may be saved from full -power displacement. 19 / Bornstein (1) For more late -breaking news, replaced him at see "In Brief" on pages 64 -65 ABC. /12 EPG wars United Video Satellite Group lost a round in the electronic program guide legal trials. / 38 Conexant risks dip into cable modem Children's Chips The Rockwell Semiconductor spin -off announces TV market the development of a single chip that could change cable may be modem technology. / 40 played out Lineup change for ESPN Classic On deck, Kids TV Declining Growing pains consistent sports programming and a centerpiece to gain audiences and viewer loyalty. / 42 could stall $1B a surplus of spots are TECHNOLOGY / 44 business in '99 expected to Panasonic, Sony hedge DTV bets Announce slow growth in new high- definition products based on existing technolo- 1999. / 20 gy. /44 Cover art by Pro -Bel pays Chyron's bills Routing and Ed Reynolds, automation products are big sellers, but the company assisted by hopes to soar with Duet. / 44 Julia McClellan BROADCASTING / 30 MTV makes big noise online Cable programmer hopes to heighten online profile with sites for kids and Buffy, Ally catch syndicators' eyes Twenti- music fans. / 48 eth execs offering hit shows for off- network play on week- The animation net ends and weekdays. 30 Cartoon pilots debut online / hits on a new strategy to test new shows before they hit the Sweeps: A tie that binds, or blinds? Syner- airwaves. / 48 gy between network shows and local newscasts is popular, problematic. 30 ABC outlets redo sites ABC Internet Group / switches from Starwave to iXL. / 49 Siskel death leaves show in doubt The Video clips for sale Islip Media launches new site future of the popular movie show is questionable as Buena that lets buyers preview before they buy. 49 Vista holds on naming a replacement. / 34 / CABLE / 38 Changing Hands 60 Datebook 59 Get w /the Program..37 A wallflower gets to dance FrontierVision Classifieds 50 Editorials 66 Hooked Up 42 backers hit bull's eye with timing of sale to Adelphia Com- Closed Circuit 18 Fates & Fortunes ..62 In Brief 64 munications. / 38 Cutting Edge 46 Fifth Estater 61 Nielsen Ratings.36, 40 MARCH 1, 1989 / BROADCASTING 8 CABLE 3 www.americanradiohistory.com BroadcasigaCahlc TOP OF THE WEEK Court cites subs, sinks same Parrying DirecTV thrust, judge orders cut -off of satellite TV distant signals to proceed By Paige Albiniak close to mid -term elections, so the two industries agreed DirecTV failed last week to delay until Feb. 28 the first in an 11th -hour attempt round of cut -offs, which to continue to deliver impact the approximately illegally imported CBS and 750,000 subscribers who Fox feeds to satellite TV sub- signed up for distant signal scribers past Sunday's court- service after March 11, 1997. ordered cut -off. A Miami fed- That was the date that CBS, eral court ordered the cut -off Fox and their affiliate groups to proceed as scheduled-but initiated a lawsuit against Congress could make it a PrimeTime 24 for copyright short-lived ruling. violation. Another 1.5 million At issue is how to determine subscribers -those who what is an acceptable TV pic- signed up before March 11, ture and how to predict such 1997-are due to lose the without physically going to DirecTV CEO Eddy Hartenstein (pictured here at service on April 30. each questionable household congressional hearing last week) incited broadcasters with About 440,000 of the total to perform a $150 test of signal short -lived plan to offer new set of distant broadcast signals subscribers in question live in strength and picture quality. to satellite TV subscribers. the outer portion, or Grade B, The law says that if half the house- Tauzin (R -La.) introduced a bill that of the signal area. About half of those holds in the outer portion, or Grade B would reinstate the feeds and maintain can get a clear signal using a rooftop contour, of the broadcast signal can get them until June 1. That would give antenna, estimates Jack Perry, CEO of a mostly clear signal half the time, then Congress and the FCC time to find the DecisionMark, a software company that area is "served," which makes it most accurate method of determining that specializes in determining which illegal to deliver distant signals there. exactly who should be able to receive households are eligible to receive dis- The satellite TV companies argue distant network signals. tant network signals. Half of those, or that this standard does not provide The bill was co- sponsored by House 220,000, probably cannot get a clear consumers with an acceptable TV sig- Commerce Committee Chairman Tom signal, Perry estimates. nal. Broadcasters respond that most Bliley (R -Va.); the panel's ranking Senate Commerce Committee Chair- households in the Grade B signal area member, John Dingell (D- Mich.); man John McCain (R- Ariz.) said he was could receive an acceptable signal if Telecommunications Subcommittee willing to look at any proposal that they would just put up antennas, some- ranking member Ed Markey (D- Mass.) would help the situation. McCain's bill thing that many consumers do not and Rep. Mike Oxley (R- Ohio). on satellite TV reform, introduced earli- want to do because they feel antennas In issuing a temporary restraining er this year, would give Congress and the are unsightly. order, a federal district court judge in FCC six months to resolve the situation. DirecTV, a satellite TV company Miami told the satellite TV company to During a Senate Commerce Com- that has to cut off the distant CBS and cut off all its ineligible subscribers by mittee hearing on the issue last week, Fox signals of approximately 40% of yesterday (Feb. 28). The judge also representatives from the broadcast and its 4.5 million subscribers, tried to scheduled a March 8 hearing to possi- satellite TV industries told McCain avert disaster last week by uplinking all bly force the satellite TV companies to their version of the problem. But they its distant network signals itself. also cut off illegal ABC and NBC sub- came no closer to getting it resolved. Because DirecTV no longer would be scribers, which the broadcasters asked "Innocent bystanders are harmed by reselling the signals of satellite TV the court to do last week. this," McCain said. "I don't think 2 mil- wholesaler PrimeTime 24-the corn - The move to cut off distant -signal lion people should be harmed by this." pany that bore the brunt of the broad- subscribers and subsequent efforts to McCain all but begged the two casters' lawsuit-DirecTV could con- protect them began last July. A federal industries to come to the negotiating tinue its distant -signal service, said judge in Miami ruled that satellite TV table, but he knows they are not likely DirecTV CEO Eddy Hartenstein. wholesaler PrimeTime 24 and its dis- even to speak in the next week. He According to the Miami court's find- tributors had to cut off by October any plans to mark up his bill this Wednes- ing, approximately 2.2 million distant - satellite TV subscribers who were day-even without industry agreement signal subscribers are receiving the receiving imported CBS and Fox or even certainty about what his col- service illegally and should be cut off feeds -if those subscribers could leagues might do. "There will be blood immediately from the satellite feed. clearly receive their local CBS and Fox on the floor of this committee and Last week, House Telecommunica- signals using rooftop antennas. blood on the floor of the Senate," tions Subcommittee Chairman Billy Congress thought that date was too McCain said. 4 BROADCASTING IL CABLE I MARCH 1, 1999 www.americanradiohistory.com Of all the honors "Irresistible television." "What tans really savor." Entertainment Weekly Newsweek and accolades `97 Golden Globe Award Winner `98 Golden Globt_ Award Winner Best Television Series -Comedy Ric>t Television Pries- Comedy we've received, "It is the best- wrltten show on television." TV Guide the recognition we're proudest of from... www.americanradiohistory.com ...the audience. SEASON -TO -DATE GROWTH Frasier +26°/O Everybody Loves Raymond +14°/O Friends 0% Spin City 0% Suddenly Susan -8% The Drew Carey Show -11% Cosby -13% Just Shoot Me -13% Home Improvement -15% Veronica's Closet -19% Caroline in the City -23% SOURCE: NTI, 1998 -99 SEASON -TO -DATE 9/21/98- 2/I1/99 VS.
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