aab-6. MEARS LIBRARY BivAlLS COLLEGE _ ... .. .... The Newsweekly of Tk i o. o. t 'ear Dea I t'saTime Warner and Turner come together in media's largest megaforce IIIIIIIInInJlllnnl1lnnl lln BC198902 NOV95 lilnlu li,nl NORMAN eHundt's B MEARS LIBRARY SIOUX SFALL SD rt Press 57105 -1623 ren's TV THE WORLD P a n A m S a t' s N e w LONDON SYDNEY LOS ANGELES MIAMI IS GETTING SMALLER. WE SAY THE LAUNCH OF THE PAS -4 SATELLITE HAS A LOTTO DO WITH IT. AO" With good reason. The new PAS-4 satellite, which commenced service on September 5, 1995, provides coverage of Europe, Africa, the Middle East, the Indian subcontinent and Asia. Now, thanks to the PanAmSat Global Satellite System, the most advanced satellite services are available directly to broadcasters, telecommunications providers and businesses anywhere in the world. Which means we offer customers the convenience and assurance of dealing with one experienced service provider, worldwide. And we're not stopping at PAS-4. Because as the dynamic market for telecommunications continues to grow, we'll launch more state -of-the -art satellites in the coming years. So you'll have even more satellite power and capacity to tap into. And there's nothing small about that. PanAmSat, G I o b a l V i l l a g e . GREENWICH CT. 12036226664 Fax 1.203.622.9163 Must Reading from BROADCASTING & CABLE Fast Timir September 25,1995 TOP OF THE WEEK TWr Turner: It's a deal Ted Turner will be the big winner in a Time Warner/Turner Broadcasting System merger, cashing in TBS for $2.5 billion. / 8 Full-court press for kids TV Politicians from President Clinton to Senate Majority Leader (and Republican presidential candidate) Bob Dole are trying to lessen sex and violence on TV, making First Amendment purists uneasy. / 14 NBC takes early lead Powerhouse performance on Thursday and a strong Tuesday put the network out front after four days of the new prime time season. / 12 Networks advance in violence war A UCLA study found "promising signs" in the way violence was depicted on the broadcast networks last season. But it found that most series that rely exclusively on violent themes are aimed at children. / 17 Paramount has sold the off- What's going on, part 2 What's going on, financially speaking? Steven Rattner net rights to 'Frasier' for upward of $100,000 a week continues his conversation about major -media consolidation, Ted Turner and to wwx New York. / 11 deregulation. / 23 BROADCASTING Big numbers are music to DBS ears One ana- lyst says a sizable chunk of direct broadcast satellite sub- O.J. finale nears Plotting network coverage of the scribers will come from current cable subscribers. / 46 closing arguments and verdict in O.J. Simpson's double - murder trial is proving "a real nightmare." / 28 TECHNOLOGY WB/UPN talk merger The competitors to be the DARS battle lines drawn Digital radio proponents fifth network have held cursory merger talks, but a insist that the technology will have little, if any, impact WB/UPN union is not expected anytime soon. / 32 on terrestrial broadcasters. Broadcasters disagree, saying the service will overwhelm radio stations. / 54 Murdoch sells; Mends gain two TVs Partners - turned- competitors Robert Smith and George Lilly Defense contractor goes commercial Research unknowingly linked up last week to buy two TV stations Development Laboratories wants to bring its military from Elisabeth Murdoch, daughter of Rupert. / 36 technologies-including its fiber -optic network -to the commercial market. / 54 COMCAST` Publisher questions copyright rule An L.A. CORPORATION music publisher may ask the Supreme Court to rule on TelemuM the validity of copyrights for all songs released before C ..,- ;'print 1978. The case would have ramifications for the radio Set-top chaos reigns ENTERP RISES,INC. industry. / 39 a The making of digital set -top TC I box is proving more difficult CABLE The Sprint -cable com- than anticipated-so difficult pany PCS venture has Ovation for New York Times The New York Times that Scientific -Atlanta, for one, joined with small cable operators to cover Co. is buying a stake in is focusing on advanced analog more than 40% of U.S. the privately owned boxes instead. / 58 households. /58 arts network. The Ovation Marcus teams with Interactive Channel company earlier bought a Marcus Cable Co. plans to extend the Interactive Chan- minority stake in Popcorn nel to customers in Texas. The is deployable Channel. 44 service / over current cable systems. / 60 Shop around the clock Three cable Changing Hands 37 Editorials 82 networks soon will feature Classified 61 Fates & Fortunes 78 'Lary Sanders' was spritzed with around -the -clock a dozen CableACE nominations Closed Circuit 81 In Brief 80 infomercials. / 44 last week. /48 Datebook 76 Washington Watch 22 4 September 251995 Broadcasting & Cable WHEN BUYING AN OFF -NETWORK SITCOM, THERE'S ONLY ONE WAY TO KNOW IF IT WILL BE SWEET FIVE DAYS A WEEK. 4r. \471CAISlIt' It's hard figuring out which network sitcom will be sweet in syndication. But the job_of picking your next hit sitcom strip becomes easier if you know where to look. Of the 270 comedies that have premiered on the CBS, NBC, ABC and FOX networks \since 1986, only 18 were strong enough to make it to syndication. And of those,' Only 6 were hits five days a week. Four of those six came from either ABC's TGIF or Fox. They are "Full House," "Fcimily Matters," "Married With Children" and -1 ' - * AVAILABLE FALL '96 Bickley/Warren Productions Jeff Franklin Productions in association with Warner Bros. Television IT'LL BE DELICIOUS IN SYNDICATION. "The Simpsons." And this season, TGIF's "Step by Step" is continuing that tradition of syndication success. What are the next big success stories coming from this breeding ground of success? TGIF's "Hangi+r_vrith Mr. Cooper" for Fall '96 and Fox's "Living Single" for FaHr''9iL - To predict future syndiqffslpn iu cess, just look at the past. If it works on ABC's TGIF or Fox;itwvorks a syndication. a., AVAILABLE FALL '97 A,Sis eb Production psibciotion with W IrËs. Tèlevision It's TBS Time By Steve McClellan Time Warner and Turner Broad- casting System have agreed to merge -after five weeks of gruel- ing negotiations, most of which involved TCI's John Malone. The $8 billion stock swap is subject to FCC and shareholder approval. The deal also has to survive scrutiny by the U.S. Justice Department and the Feder- al Trade Commission, both of which will review the anticompetitive impli- cations of the merger. If the deal goes through, Ted Turner Ted Turner and Jerry Levin will be the biggest winner, cashing in announce the $8 billion stock the company he built from scratch for a swap that will create the U.S.'s $2.5 billion, 11.3% stake in the largest media and entertainment company in the world. He'll be vice chairman of conflicts of interest for Time Warner." signed deals agreeing to carry WTBS the parent company and will remain Levin described the suit as "absolutely as a basic service. As part of the con- chief executive of TBS as a wholly without merit." version, TCI will sell Time Warner owned subsidiary of Time Warner. In Separately, Levin told analysts last Southern Satellite Inc., the satellite addition, Turner will oversee Time week that relations with US West have common carrier that distributes WTBS Warner Video, a new division consist- grown "very frosty" over efforts to as a superstation, for a combination of ing of the TBS properties, along with restructure Time Warner Entertain- stock and cash totaling $360 million. "supervisory responsibilities for the ment, comprising HBO, Warner Bros. Time Warner and Turner officials say businesses of Home Box Office." and Time Warner Cable (in which US the restructured TBS would add another But many key management issues West has a 25% interest). $100 milllion in annual cash flow to the remain unanswered, and Time Warner Time Warner wants to separate the company's coffers. While the merger Chairman Gerald Levin confirmed that cable system assets into an off -bal- will add another $2 billion in Time exact roles and responsibilities within ance -sheet joint venture with US West Warner debt (for a total $19 billion), the merged companies remain to be that would resemble the Warner -Amex TBS will add $600 million in annual determined. "We are going to talk about MSO venture that existed back in the cash flow to Time Warner before the a team," he told reporters last week at a 1970s and '80s. Divisive issues include conversion of TBS to a basic service, press conference announcing the deal. both control and valuation of the assets executives said last week. Thus, debt -to- "That's what Ted Turner represents, in the Time Warner Entertainment cash -flow levels will improve as a result and that's how we're going to go for- portfolio. of the merger, they said. ward. What I expect to do between now Meanwhile, Levin said he was confi- Besides the Southern Satellite deal, and [the deal's closing] is spend a lot of dent that the merger would be complet- TCI's Malone negotiated several other time sensitively and patiently seeing ed in six to nine months. Soon after long -term arrangements in exchange how the family is going to come togeth- completion, Time Warner will create for approving the merger. Among er. I think everybody here supports that its first new cable network -WTBS- them: extended carriage agreements idea," he said, referring to top TBS and which is being converted from a that give TCI systems rights to the var- Time Warner executives in attendance.