Butler University Digital Commons @ Butler University Graduate Thesis Collection Graduate Scholarship Winter 1-19-1995 The Survival of the Three Original U.S. Television Networks Into the Twenty-First Century as Diverse Broadcast Programming Sources Don Robert Fitzpatrick Butler University Follow this and additional works at: https://digitalcommons.butler.edu/grtheses Part of the Broadcast and Video Studies Commons Recommended Citation Fitzpatrick, Don Robert, "The Survival of the Three Original U.S. Television Networks Into the Twenty-First Century as Diverse Broadcast Programming Sources" (1995). Graduate Thesis Collection. 31. https://digitalcommons.butler.edu/grtheses/31 This Thesis is brought to you for free and open access by the Graduate Scholarship at Digital Commons @ Butler University. It has been accepted for inclusion in Graduate Thesis Collection by an authorized administrator of Digital Commons @ Butler University. For more information, please contact [email protected]. Name of candidate: Don Robert Fitzpatrick Oral exami nation: Date---------------------------------------- !-Iq-<;S Chairman Thesis title: The Survival of the Three Original U.S. Television Networks Into the Twenty-First Century as Diverse Broadcast Programming Sources Thesis approved in final form: Date !.~.!.!l.=_f_~ _ Major Professor The Survival of the Three Original u.s. Television Networks into the Twenty-First Century as Diverse Broadcast program Sources by Don R. Fitzpatrick EXECUTIVE SUMMARY The economic viability of the three original U. S . television networks, ABC, CBS, and NBC, is threatened by emerging competition, excessive regulation, and the proliferation of new broadcasting and telecommunications technologies. This is a significant problem because United States viewers have depended upon free, diverse, broadcast television programming for more than forty years. This programming has traditionally been provided to viewers at no charge, unlike costly pay-per-view, direct broadcast satellite systems, cable television, backyard or rooftop television satellite receiving dishes, video programming via the Regional Bell Operating Companies (video Dialtone), wide and local area computer networks, or the Internet. Each network's survival depends upon its strategies in the areas of new technologies and political action with regard to regulation. Moreover, the three original networks are healthier than they may appear because the financial takeovers that occurred in 1985-1986 provided each with financial strength and strong corporate leadership. Results of the Investigation A thorough review of the literature is undertaken in the thesis. The methodology employed is systems theory, based in the fields of scientific management and organizational communication. An open systems model is developed based on the matrix developed by Krasnow and Longley (1978). A systems analysis specific to ABC, CBS, and NBC is presented in Chapter 3. Highlighted in the systems analysis are regulation/law (FCC's Financial Interest and Syndication Rules); the relationship between motion picture studios (as providers of programs) and the networks; advertisers and their advertising agencies; independent program producers; network affiliate relations/compensation; alternative technologies; and entertainment/news/sports as diverse broadcast network programming for the viewing public. Conclusions and Recommendations for Future Research The interaction between the key participants in the core of the open systems analytical model produces authoritative policy outputs as conclusions: availability of the networks' film/videotape archives through the personal computer and the Internet; implementation of digital high definition television; the formation of additional new ABC, CBS, and NBC channels using their archival footage; sale of the networks' programming to the Regional Bell Operating Companies for rebroadcast via video Dialtone; the networks' joint venture or merger with (or takeover of) an entertainment or electronic communication entity; the networks' counter-programming their competition and creatively expanding existing programming; employment of more aggressive promotions and advertising campaigns; lobbying of the Congress, the White House, and the FCC for less stringent fin-syn rules; more effective use of alternative technologies; transmission of network programming via DBS; ABC, CBS, and NBC producing more made-for-TV movies, series, and theatrical release motion pictures; and greater expansion l10ff shore" (internationally). It is recommended that future research examine the expanding 21st century financial, technological, and regulatory policies of the cellular, photonic, fiber, and digital telecommunications technologies and information enterprises from a cultural, economic, political, and environmental impact as well as the societal factors that influence television viewership in this new environment. THE SURVIVAL OF THE THREE ORIGINAL U.S TELEVISION NETWORKS INTO THE TWENTY-FIRST CENTURY AS DIVERSE BROADCAST PROGRAMMING SOURCES by Don R. Fitzpatrick Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science in the Department of Telecommunications Arts Jordan College of Fine Arts of Butler University JANUARY 1995 L 701 TABLE OF CONTENTS ,13/ 7 ACKNOWLEDGJIilENTS 111 CHAPTER 1. INTRODUCTION 1 Thesis Statement and Hypotheses The Significance of the Problem Review of Related Literature Methodology CHAPTER 2. THE U.S. ORIGINAL TELEVISION NETWORKS 1985-1986 FINANCIAL JIilERGERS AND TAKEOVERS 17 capital Cities Communications/ABC Loews Corporation/CBS General Electric Company/NBC CHAPTER 3. SYSTEMS ANALYSIS. 29 Regulation/Law: The Federal Communications Commission and the Financial Interest and Syndication Rules Motion Picture/TV Studios Advertisers/Advertising Agencies Independent Producers Network Affiliate Relations/Compensation The Networks' Competition: Alternative Technologies The Viewing Public: Entertainment/News/Sports as Diverse Broadcast Network Programming i CHAPTER 4. CONCLUSIONS--AUTHORITATlVE POLICY OUTPUTS OF THE THREE ORIGINAL U.S. TELEVISION NETWORKS DIVERSE BROADCAST PROGRAMMING SOURCES ANALYTICAL MODEL . 53 Recommendations for Future Research APPENDIX 1. GLOSSARY 1V 2. THE THREE ORIGINAL U.S. TELEVISION NETWORKS AS DIVERSE BROADCAST PROGRAMMING SOURCES: AN ANALYTICAL MODEL . viii 3. FINANCIAL MP~TRIX OF THE 1985-86 TELEVISION NETWORKS BUYOUTS, MERGERS, TAKEOVERS, AND PRINCIPAL EXECUTIVES . .. 1X BIBLIOGRAPHY x 11 ACKNOWLEDGMENTS It is not difficult to name and give thanks to the following family members, professors, instructors, and teachers influential to me in my work in television and film studies - -my father Russell (" Bob II) Fitzpatrick, my mother, Evadene Fitzpatrick, my sister Nancy Ann Fitzpatrick Ayers, E. Kent Ayers, Greta Young Payne, Danny and Karen Young, Karen and Simon Boehnlein, Patrick and Susan Welbourne, Fr. Paul O'Brien, Jerry Salvaggio, Dr. Frederick Alexander, Dr. Joseph Backor, Dr. Lester Schmidt, Joe Pacino, Dr. William Lindblad, Jack Tiller, Richard Miles, wayne Hepler, Steve Bernstein, Gary Havens, Dr. Cynthia Cobb, Peggy Huston, Don Fuller, David Fort, Fred McCashland, David Tilton, Dr. Lee Dahringer, and Dr. William K. Templeton. Special thanks are due the members of my committee: Professor Chris Buck, Department of Telecommunication Arts, Jordan College of Fine Arts, Butler University, and Dr. William Neher, Speech Communication Department, College of Liberal Arts and Sciences, Butler University. Their guidance throughout my masters study was invaluable. I owe a deep debt of gratitude to my master's thesis advisor, Dr. Kenneth C. Creech, Professor and Chairman of the Department of Telecommunication Arts, Jordan College of Fine Arts, Butler University. While the work presented here is my own, it could not have been developed without his knowledge of broadcast television networks, regulation, and technology, and his generosity in sharing that knowledge with me. Lastly, and most importantly, genuine thanks to my greatest friend, my wife, Christine Young Fitzpatrick, whose support, intelligence, patience, and sound judgment are priceless. This thesis is dedicated to her. 111 CHAPTER I INTRODUCTION Thesis Statement and Hypotheses The economic viability of the three television networks ABC, CBS, and NBC is threatened by emerging competition, excessive regulation, and the proliferation of new technologies. 1) The three original networks are healthier than they may appear because the financial takeovers that occurred in 1985-1986 provided each network with financial strength and strong corporate leadership. 2) Each network's survival depends upon its strategies in the areas of new technologies and political action with regard to regulation. The Significance of the Problem The significance of investigating this problem is that the united States has traditionally depended upon the three original television networks to deliver diverse programming (news, entertainment, and sports) at no cost to the viewer. This thesis does not include an examination of Fox Broadcasting (with its abbreviated prime time schedule) or the proposed United/Paramont and Warner Brothers Television 1 networks because they are considered "emerging networks lf by Federal Communication Commission rule CFR 47 73.659 and are, thus, exempted as television networks: No television network, other than an "emerging network" as defined in 73.662(g} of this part, may hold or acquire continuing financial interests or