giroadcastiii6i FIRST IN TELEVISION CABLE RADIO SATELLITE FCC CLEARS WAY FOR NETWORKS TO BUY CABLE SYSTEMS / 4 HOUSE CABLE BILL: RETRANS GONE BUT NOT FORGOTTEN / 10 A NEW HYBRID: PROMOTION MANAGER/PROGRAM DIRECTOR / 22 Between a rock and a hard place Is this the future of local television news? TELEVISION On June 23, news pioneer and worthy competitor NEWS INSURANCE Newsfeed will be no more. With its passing go your news service options. With one exception: Conus. A total news service. Still independent. Still exclu- sive. Possibly still available in your market. OUR GOAL To provide local broad- casters the independence, the options and the technical capability they need to determine their own destinies in an evolving industry. Conus Communications a**************** 3-DIGIT 554 anC9273680#P APR93 BR262 251 BRCOKLYN LENTE MN 55430 WE CAN SEND A SIGNAL 186,280 MILES IN A SECOND. BUT WE'RE PROUDER OF HOW FAST WE CAN RETURN YOUR PHONE CALL. 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Besides the 25% local cap, broad- casters were also pushing for strong safeguards to prevent any anticom- petitive behavior by a network -owned system. Specifically, the affiliates and independents wanted must -carry and channel positioning language includ- ed in the item that would prevent the networks from bouncing stations around the dial, which would hurt rat- ings. FCC hears staff proposals to allow TV networks to own cable systems The FCC concluded, however - with Commissioner James Quello dis- senting -that there was no need to adopt broad behavioral measures. In- F(( LETS TV NETWORKS stead, the commission said it would establish a process to resolve com- plaints from local broadcast stations INTO CABLE OWNERSHIP and, should a network -owned system be found guilty of anticompetitive Commission votes unanimously to allow purchases practices, the commission will "take of systems that serve no more than 10% of nation's remedial action including ordering the homes those in market operator to carry the station or carry it passed and 50% of on a given channel, as necessary." Quello described those safeguards By Joe Flint Under the new rules, networks will as "negative must carry," which, he be able to acquire cable systems said, means "no must carry." Com- The FCC voted 5- a dis- serving up to 10% of homes 0-with passed missioner Duggan also said he would sent in part here and a dissent in nationwide and to up 50% of homes have preferred affirmative must -carry part there -to permit the three passed in a market. The 50% cap will language. Said Quello: "I have a num- broadcast networks to own cable sys- be waived in instances where a net- ber of questions about this feature of tems and vice -versa. work -owned cable system is a "com- But although the networks may now peting system." Continues on page 16 have their cable cake, the ownership caps imposed cast some doubt as to whether they will be able to CABLE BILL HEADS TO HOUSE FLOOR eat it, too. ouse Energy and Commerce Commit- the Judiciary Committee. The "leaner and Those doubts are not tee Chairman John Dingell (pictured), meaner" cable bill, as one committee shared by affiliates and in- jealous guardian of jurisdiction over com- member called it, passed the committee dependent stations who munications legisla- last Wednesday, 27- fear that network -owned tion, dropped retrans- 16. Retransmission cable systems will use their mission consent and consent and program leverage in an anti- compet- access to programing access proponents itive manner by moving provisions in the hope to fight for their competing stations to "ca- House cable reregula- causes again on the ble Siberia" or not carrying tion bill (H.R. 4850) House floor some time them at all. The networks rather than risk a ruling next month (see story, counter that such a move of joint jurisdiction with page 10). would be crazy. 4 Jun 22 1992 Broadcasting WALL STREET ThisoWeek REACTION MIXED TICKET TO interest in broadcast licenses to lenders take CABLE SNOW TO NETWORK / 4 their cases to FCC. The FCC voted unanimously last week FCC DEFENDS CABLE RULES to drop the ban on FIN -SYN / 40 networks buying cable By Geoffrey Foisie systems. Some Commission makes restrictions apply. its case before Chicago court in challenge of FOXFEST / 6 rules by networks and Most financial and cable trad- other programers. ing sources seemed unim- Fox 'affiliates' gather pressed by the FCC's deci- to talk about the fall VIDEO sion allowing limited network schedule and rise in Fox fortunes. CLIPPERS / 41 ownership of cable systems. Of the In wake of court three network parent companies, only CABLE BILL defeats over copyright Capital Cities /ABC was thought to be MARKUP / 10 infringement, a likely buyer by those commenting. broadcast monitors seek MSO stocks gained Friday as did House Energy and some statutory relief. market averages. Commerce Committee passes cable Columbia's first -run Not everyone thought the ruling TOP 100 / 43 reregulation bill. 'Beakman's Place' was unimpressive. John Waller, presi- stakes dual BROADCASTING'S dent, Waller Capital Corp., said own- PROMOTION broadcast /cable claim exclusive look at the top ing (p. 23) companies in cable systems would help the net- DIRECTORS DON works offset their risks as they expand sales team to sell electronic PD HATS communications, programing for the cable market. Wal- / 22 package buys on SportsChannel including breakouts of ler said there are at least five MSO's Hybrid promotion /program regional services. performance by the networks could buy under current industry segment. rules. directors could be the wave of the future. TAX BILL / 32 However, most comments N EWS DEPARTMENTS mirrored Turner's Sassa tells Senate Finance those of Lazard Freres partner Steven group promotion has Committee approves B usiness 32 Rattner, who called the FCC decision momentum in 90's. legislation less Cable 30 "half a loaf." He continued: The re- favorable to Radio 24 strictions really eliminate the possibili- MOVER AND broadcasters than Technology 34 ty of acquiring or investing in a major SHAKER / 25 House version but still Television 22 MSO." As for an MSO acquiring one providing tax break. Top of the Week 4 Ted Shaker is Washington 39 of the networks, said Rattner: "I don't replaced by Rick Gentile TITAN think there are any who have both the at CBS Sports. FEATURE SECTIONS TACKLES GI / 34 money and the interest." Bicoastal 19 With more than $1 billion in liquid ABC RADIO WIRE Joint venture will B y the Numbers 58 market descrambler in assets which could, in turn, be lever- SERVICE / 28 Changing Hands 33 aged several times through borrowing, competition to Closed Circuit 10 Satellite -delivered General Instrument's Capcities /ABC is thought to be the Datebook 50 radio feed will get bulk of VideoCipher. most likely Editorials 70 to invest in cable systems. news from Reuters Company must still gain Fates & Fortunes 64 But the revised rules, particularly America and Gannett approval of cable those limiting networks to no more New Media. programers. Fifth Estater 63 For Record than 50% of subscribers in a market the 59 In Brief (except where a competing multi- RAINBOW GROWING 68 Monday Memo 67 channel operator exists), and the ex- COALITION INTEREST 39 / 30 / Ratings Week 27 isting rule prohibiting common owner- Rainbow Advertising Two sides on Special Report 43 ship of systems and TV stations in the Sales forms national ad extending security Washington Watch 42 same market, would limit the compa- ny's opportunities. Founded in 1931 as Broadcasting, the News Magazine of the Fifth Estate. Broadcasting -Trima rang introduced m 1946. Tdrwiote acquired in 1961. Cableraning Introduced in 1972. Broadcasting /Cable introduced in 1989. Brood,wangS is a registered trademark of Reed Whether NBC makes any pur- Publishing (Nededand) B.V.. used under Intense Reg. U.S Patent Office. chases is more a mystery to outsid- Incorporating The Fifth Estate 'l'EI.F.\ ISION Broadcasting N Cable ers. Said one major cable investor: Broadcasting (ISSN 0007.2028) (DST P123397457) is published weekly with one additional special issue in lamer) bJ The Cahners Publishing Co. (subscnptinn includes all issues). Cahmen Publishing Co .. at 475 Park Ave. South. New York. NY 10016. n a division of Reed "NBC is the wild card. Two years ago, Publishing LISA, 275 Washington SI.. Newton. MA 02158 -1630: Terrence M. McDermott. President/Chief Operating Officer, Frank 1. Sibley. Executive Vice President. John 1. Beni. Senior Vice President/General Manager. Neil Perlman. Senior Vice President/Group Publisher: terry I would have told you definitely they D. Ned]. Senior Vice President/Publishing Operations. 1.1. Walsh. Senior Vigie President/Finance: Thomas 1.