riz5 g)y/ $3.95 he Newsweekly of Television-and Rad a. 6Eth Year 1997 A Car r ers Puhli:ation a I V vl 1 , -- CONSOLI D Ari 0 N Page 4 AVER STORY , .; ashington Steals .,, .. - Ele Show With Lt I:I"L_01N-° auguration '97 MIT TPTITtr,_ Age 39 is O 111 1 II I1. .. www.americanradiohistory.com Povich & Chung Strong Words for Access. DRFAMAATORICS TELEVLSKRST 1997 D!eamWerws Tebreson Ad Rights Reserved www.americanradiohistory.com Aua.ence ...Our word for customer. Valut ...Our word for why people watch. Story ...Our word for what people want to know. www.americanradiohistory.com www.americanradiohistory.com http: //wvw.broadcastingcable.com Must Reading from aX Fast Tack January 27, 1997 TOP OF THE WEEK / 4 Broadcasters voice differences on consolidation Some broadcasters fear that more deregulation will put more channels in fewer hands. Others contend it's already happened. / 4 isyvsrr-irifte ABC must pay $5.5 million to Food Lion A North Carolina jury ordered ABC to pay grocery chain Food Lion $5.5 million in puni- tive damages for trespass and fraud in an undercover report on the super- market's food -handling practices. The network said it will appeal. /11 NBC pulls on is plug Canal de Noticias NBC pulling the After VH1 mounted an aggressive campaign for rein- plug on Canal de Noticias, a Spanish -language news network that claimed statement featuring recording artists Tory Rich, to have 5 million subscribers in Latin America and the U.S. The collapse of John Mellencamp, Don Henley and Jewel (pictured the network above in Denver), Tele- Communications Inc. re- comes as welcome news to Westinghouse /CBS, which just last versed its decision on bumping popular cable net- July purchased competing service TeleNoticias. / 11 works VH1 and MTV. / 10 FCC indecency review yields few fines Although FCC officials last fall launched a fresh review of pending indecency complaints against Howard Stern and other broadcasters, so far most stations have encountered smooth saiiing at the commission's enforcement division. / 26 AT LARGE NANBA looks Cable hopes to sell investors back -and ahead on core value From "tracking" North AmeriL ut Nation - stocks and spin -offs to initial public a Broadcaster Associa- offerings and "monetizing assets," lead- tion Secretary General ing cable companies are looking at any usN Bill Roberts discusses and all tactics to improve cash flow, re- the origins of his group, Barry DiNer's Home duce debt, simplify corporate structures Shopping Network is a well as its plans to and gain some investor recognition of closing its merchan- expand its score. 37 the value of core cable operations. 57 dise- return center in / / Florida and axing 250 emp,oyes. 59 BROADCASTING / 39 Telemeit STORY Saban, Bohbot WorldGate, NetChannel move toward launch ties the oath Nearly all quiet on WorldGate Communications added funding from some sig- ajdroadcast and cable clearances nificant sources for first- quarter trials of its TV-based Inter- networ s aired live cover- As of late last week, net access cable service, while Oracle's and Thomson's age of Bil. Clinton's in- Saban Entertainment Net('hannel moved toward a debut in late March. / 63 augural ceremony and and Bohbot Enter- TECHNOLOGY /65 swearing -in. /39 tainment had not re- Cover photo by leased post -NATPE SPECIAL REPORT: Loral, EchoStar Dennis Brack/ sales figures on new DOMESTIC SATELLITES getting fixed look Black Star syndicated offerings The sa'ellite industry is still grappling with the Loral Space & Communi- for the coming sea- loss of 24 C-5and cations and EchoStar have son. Smaller distribu- transponders and 16 raised eyebrows in the sat- Ku -bard trar s- tors, such as Claster ponders floating ellite industry with their Television, came above J.S. entry into the fixed satellite AT&T's away with strips and skies, .n the service market, signaling wake cf the Telstar wozklies 70% cleared in more than /o of the country. / 46 failure of 401 hybrid moves in new directions satellite. - 65 Interep gets CBS Radio stations CBS Radio For both companies. / 68 has turned over national sales representation of its 79- station Changirg Hands 52 Datebook 91 In Brief 96 group -valued at $250 million in sales -to the Interep Classified 76 Editorials 98 Network Ratings 51 Radio Store, and will fold CBS Radio Representatives. / 55 Closed Circuit 12 Fates & Fortunes 93 Washington Walch..36 Broadcasting & came January 27 1997 3 www.americanradiohistory.com Broadcasting & Cable CONSOLIDATION YEA OR NAY NAB takes up industry debate over relaxation of duopoly, limitations on LMAs By Chris McConnell WASHINGTON TV'S TOP 10 Act 1996 didn't do much to deregulate the television business, More TV consolidation may be While the Telecommunications of raced around the comer, some broad- it did raise the cap on how many TV households a broadcaster can cover. News Corp. to reaching for it. casters say. be the first to near the new 35% limit, in July 1996, and other companies are No. % of U.S. Others contend it has already hap- Company of stations TV We Former %*' pened. News Corp. /New World 22 34.841 22.05 (News Corp.); TV broadcasters gathering in Naples, 12.78 (New World) Fla., this week for the National Associa- Westinghouse /CBS 14 30.83 30.95 tion of Broadcasters joint board of Tribune /Renaissance 16 24.88 24.96 directors meeting will consider support- 11 24.65 ing further relaxation of the FCC's TV NBC 24.134 ownership restrictions. Some broadcast- Walt Disney/ABC 10 23.952 24.06 ers-particularly those heading smaller Paxson Communications 19 18.725 17.97 groups -fear that such deregulation Chris Cratt/United Television 8 17.637 17.70 could open the door to placing more Silver King 16 16.448 20.00 channels in the hands of fewer owners. Gannett/Multimedia 16 15.515 14.08 (Gannett) Those worries are echoed by adver- Univision 12 13.352 12.8 tisers, watchdog groups and even the 'In millions, based on Nielsen estimates, September 1996; consistent with FCC rules, UHF stations Clinton administration. They fear that are credited for half the homes in a market. "B&C, July 8, 1996 the buying trend -totaling more than $10 billion in TV transactions in 1996 compared with $4.7 billion in 1995-is GROUP GRABS leading toward an Fos- era of Charles Here are the biggest TV -group deals of 1995* and 1996: ter Kane type media moguls. $19 billion: Walt Disney Co. buys Capital Cities /ABC and its 10 TV "Monopoly stations, 21 radio stations, interest in several cable networks and publi- power, pricing cations.' Westinghouse Electric Corp. buys CBS Inc.'s seven Ns, power, is not a $5.4 billion: good thing no mat- CBS TV Network, radio stations, radio networks and CBS Entertainment ter what the medi- Productions." Inc. acquires the 80% um is," says John $3 billion: News Corp. /Fox Television Stations Kamp, senior vice it doesn't own of New World Communications Group Inc., including 10 president of the .k PA11 Ns and one LMA. American Associ- $2.3 billion: Merger of Multimedia Inc. into Gannett Co. Deal Disney ABC set the includes five Ns, two radios, a cable system and 11 daily newspapers.' ation of Advertis- record for big deals. ing Agencies. $1.5 billion: Merger of Providence Journal Co. into A.H. Belo involves 11 Ns, a newspaper and interest in cable networks. "It's a way for the good old boys to keep everybody out," adds Andrew $1.217 billion: In two separate deals worth $732 million and $485 million, Raycom Schwartzman, president of the Media Media Inc. buys 15 Ns and two radios, and seven Ns. Sellers are Ellis Communications Access Project. Inc. and AFLAC Inc., respectively. and its six Ns into Tribune. But others say that much of the $1.13 billion: Merger of Renaissance Communications feared consolidation already exists. They cite the widespread use of local 'dent. Jones -who opposes LMAs and tions station group. marketing agreements (LMAs), which further consolidation-also says relax- Those LMA deals will eventually be allow broadcasters to manage stations ing restrictions on owning more than subject to local ownership restrictions, without counting them as "owned" one TV station in a market would under the proposal issued by commis- facilities. Some 49 of the deals now merely make people striking the LMA sioners last November. The proposal exist in 45 markets. deals "feel less guilty." would treat new LMAs as owned sta- "People have been slipping around "The major [deals] are probably tions and would grandfather existing the rule anyway," says Philip Jones, already done," adds William Sullivan, agreements until they expire. Meredith Corp. Broadcast Group pres- manager of the Cordillera Communica- The move to attribute LMAs follows 4 January 271997 Broadcasting & Cable www.americanradiohistory.com Top of the WeelE- a series of actions in Washington to said that he does not think that allow- increase diversity of viewpoint and relax the ownership rules. In response ing common ownership of two TV sta- programing in some markets. to the 1996 Telecommunications Act, tions in a market is a good idea. That was the argument favored by the FCC last year eliminated the 12- "Outside of group owners, no one broadcasters at this month's NATPE station cap on TV ownership and raised thinks [further concentration' is a good convention in New Orleans. Dis- the national audience -reach limit from idea." adds Larry Irving, head of the cussing the remaining restrictions, 25% to 35%. In 1995 the commission National Telecommunications and executives on one panel pitched the also eliminated the financial interest Information Administration.