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Must Reading from
June 9, 1997
TOP OF THE WEEK / 6
NBC is lone holdout in ratings revision Other major broadcast and cable
warnings, but NBC refuses to go along. /
networks are ready to augment the age -based ratings system by attaching content
6
ABC, affiliates find common ground ABC's meeting with its affiliates was
described as "somewhere between a bloodbath and a love fest" -not bad, given the net-
/
work's programing troubles. ABC did give in to certain affiliate concerns, and agreed to
kill a promotional spot that said. tongue-in- cheek, "books are overrated." 12
Upfront sales hit $6 billion The broadcast TV networks have completed their
third consecutive record upfront sales season, reaching $6 billion for the first time. 14 /
Promotion's state of the art TV marketers gathered in Chicago last week to plot strategies for allocating at least
$500 million worth of advertising and promotion for syndicated programs premiering and returning this summer and fall. /17
TCI Looks to buy 30% -plus of Cablevision Cablevision Systems Corp. is negotiating to sell a 30% -35% equity
stake in the company to TCI in exchange for the Denver -based operator's lucrative suburban New York operation. / 18
CABLE /41
Mikes boom Radio
station consolidation drives Good times, bad times for DBS DBS has endured
the need for cost -efficient
programing, and group
owners, start-up syndica-
failed mergers, partnership shifts, bankruptcies and general
turmoil while still maintaining solid, on- target growth. 41 /
Viacom orders Blockbuster boss from Taco
to supply the demand -
tors and networks compete
and unveil the next big tal-
Bell In an effort to revive Blockbuster Entertainment,
Viacom Inc. is bringing in retailing veteran John F. Antio-
ent. BROADCASTING &
CABLE looks at who's hot man/CEO of the ailing video rental chain. 44 /
co, president/CEO of Taco Bell Corp., to become chair-
and what's on the horizon
for syndication. /22
Cover illustration by GI develops telco gateway
Jimmy Longacre General Instrument's Next Level Com-
munications subsidiary has developed a
new interface product that will allow
BROADCASTING / 31
Fox finds The Lost World' at reported $80
telco customers to receive video, telepho-
ny and data through one box. 48 /
Michael Sherlock, NBC VP of technology,
million Fox reportedly outbid ABC's $75 million and retires. 48
million for broadcast rights to the monster hit
N BC's S70
sequel to "Jurassic Park."/ 31 media 152
The Perez family gives CNN, Oracle team for
`Al' new look American Jour- custom news CNN launched
nal is getting new co-anchors and personalized online news service
a new look next season. Michele CNN Custom News in cooperation
Dabney -Perez and her brother, with Oracle Corp. last week, per-
onetime talk show host Charles mitting PC users to customize news Heaven's Gate streaked
Perez, will take over anchor duties
/
in September from the departing
Nancy Glass. 31
300 categories. /
content accessed from more than
53
in and out of Internet
ratings. /53
Changing Hands 37 Datebook 68 In Brief 72
Talker Maury Povich is moving his Network Ratings
Classified 55 Editorials 74 36
syndicated show to Universal from
former distributor Paramount. / 32 Closed Circuit 18 Fates & Fortunes 70 Washington Watch..21
4 June 91997 Broedcastig & Cable
4
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scare too.
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Source: N71 Average Audience estimates includng preliminary estimates and Nielsen Client CUT* System, 4124-5117/97: Fox Kids Network, 41245121197: Nick, WE 7:30-930a and 3.59, Sat 8a.12p,
all Fox Kids Network programming. Subject to yualificatints wtich will be supplied upon request. Goosebumps 51 C 1995 Parachute Press, Inc. All rights maenad. Published by Scholastic, Inc.
Casper C a Harvey Comics, nc., A Harvey Entertainment Company. 0 1991 Hearst Entertainment and Unreality Inc. n & 0 1997 Fox Kids
Broadcasting & Cable
NBC hanging tough
NBC is lone holdout on plans attach his measure to a last-moving
to add content labels to icons piece of legislation if he couldn't get it
on the floor as a stand -alone bill. But
By Paige Albiniak McCain shot down that notion, saying
that Senate leadership, including
WASHINGTON
Senate Majority Leader Trent Lott
Tlie threat that broadcasters and (R- Miss.), would not support any
c able would cave in to con - movement on the legislation while
gressional pressure to add con- talks with broadcasters were con-
tent warnings to the controversial tinuing.
five- month -old TV ratings system Nonetheless, Markey said,
enveloped both industries last week, "Hollings's proposal has sharply
with NBC the only apparent holdout. focused the attention of the entire
All the other networks, along with the industry."
National Association of Broadcasters Another bill, sponsored by Coats,
and the National Cable Television Asso- would force broadcasters that do not
ciation, were reported to be leaning adopt a satisfactory content -based sys-
toward adding SVL (sex, violence and tem to relinquish their spectrum. Coats's
language) notifications to the age -based bill is scheduled for markup in the Com-
ratings now on the nation's TV screens. merce Committee on June 18, two days
The near unanimity reported back- before an FCC hearing on TV ratings.
stage had not yet reached daylight. "We "We don't want to legislate, but we
have made no decision," said NAB Pres- are prepared to legislate," Coats said
ident Eddie Fritts. "If we do, it will be after Wednesday's meeting.
largely at the behest of the networks and The lawmakers indicated they want-
the stations." NCTA President Decker ed consensus on the revamped TV rat-
Anstrom would say only: "We're mak- ings system by next week. But if con-
ing progress." sensus means NBC. the industry may
Congress, parent -child advocacy miss the deadline.
groups and now NBC's industry peers IlcCaln: "We will uphold our end of "[Legislators] asked [last Wednes-
want NBC to agree. But for now, the day] if they could say that everyone has
network is standing firm. the bargain. We will give them time." agreed to go with content -based ratings
"We are not prepared to go along ings are wing the threat of legislation to systems," an NBC source said. "[We
with S.V and L.... They are misleading motivate broadcasters. That threat was said] 'absolutely not.' We will end up
[designations] and lead to indiscrimi- delivered at least tacitly at a meeting going to the meetings that we are invit-
nate blocking and censorship," says one last Wednesday between key lawmak- ed to, but in terms of the company's
NBC executive. ers and representatives of Time Warner position, we are not moving."
There's been no official discussion and the four broadcast networks in the Others believe the network will give
among the affiliates about NBC's offices of Senate Commerce Commit- in to mounting pressure as the deal's
stance on the latest ratings issue, said tee Chairman John McCain (R- Ariz.). deadline nears. "I don't think General
affiliate head Douglas Adams of KXAS- Also in attendance: Senator Dan Coats Electric can afford for its network to be
TV Fort Worth, but "I share the net- (R- Ind.), House Telecommunications the only holdout, the renegade network
work's concerns about the increasing Subcommittee Chairman Billy Tauzin that is unwilling to be parent -friendly.
regulation over content from Washing- (R -La.) and Representative Edward GE is supposed to be parent- friendly-
ton. I think it's a very dangerous thing Markey (D- Mass.). what is NBC doing ?" asked Jeff Ches-
for our country as well as for the indus- Two pieces of legislation are ready ter, executive director of the Center for
try. I'm always concerned when people for action in the Senate. Senator Ernest Media Education.
in Washington want to begin exerting Hollings (D-S.C.) has sponsored a bill The TV ratings were created to facil-
control over content." that restricts violent programing to itate use of so- called V -chip technolo-
The proposal would also add non - late -night hours. It passed the Senate gy, which was mandated by the Tele-
industry participants to the ratings Commerce Committee 19 -I and awaits communications Act of 1996. Once
oversight board and would increase the floor action. Markey has a companion installed in TV sets, the V -chip will
size of the on- screen rating symbols, piece ready in the House. permit parents to black out programing
according to one industry source. A Hollings aide said earlier in the based on whatever ratings system or
Lawmakers who support content rat- week that the senator would try to systems the broadcasters and cable net-
June 9 1997 Broadcasting & Cable
Top of the Week
works adopt. The FCC has yet to say
when the manufacturers must include
the V -chips in TV sets.
Parents don't understand, study concludes
Tauzin said three messages on TV While 70% of parents say they are aware of the five -month -old TV ratings
ratings emerged from his May 19 hear- system, only about 35% use it to guide their children's viewing, according
ing on the topic in Peoria, III.: pro- to a new survey by the Annenberg Public Policy Center of the University
grams need to be rated more precisely, of Pennsylvania.
parents need more information to The center is releasing the survey results and four reports today (June
determine the content of programs and 9) in Washington at Annenberg's Second Annual Conference on Children
the ratings need to be applied consis- and Television.
tently by all the networks. Parents may not use the ratings system because they don't understand
But some doubt that parents actually it, Annenberg concludes. Of the survey of 1,228 parents, only 5.9% could
are dissatisfied with the system, which correctly define "TV -14" when given a list of options from which to choose.
has been in place for five months. Their children knew better. Some 6.4% of the 297 kids who were polled
"When we interview parents, they knew that TV -14 means "parents strongly cautioned."
like this system," says Motion Picture Another Annenberg report addressed the way that local broadcasters
Association of America President Jack will implement the FCC's new educational -TV regulations. Network O &Os
Valenti, the principal architect of the and affiliates will cut back slightly on the amount of airtime they devote to
current system. "The concern [for educational programing, from 3.6 hours per week to 3.2. "Weblet" affili-
some in Congress] is not so much over ates, "who have a greater interest in maintaining a child audience," plan to
whether they like this system, but over slightly increase that time, from 4.2 hours to five, the report says.
what programs are on the air." Interviews with employes of 28 stations of all kinds across the country
Valenti, who spoke from Holly- revealed that with most networks planning to supply three hours of edu-
wood, was not invited to the Wednes- cational programing a week, the locals would cancel their existing locally
day meeting, but one industry source produced or syndicated programs.
says that Valenti and other West Coast Respondents in the open -ended interviews added that they no longer
programing producers back NBC's have an incentive to provide educational shows beyond three hours. -EAR
strong stance.
auctions to be made up by increases in
Planned obsolescence capital gains taxes.
"There's not one member of that
committee who believes spectrum
House Dems want TV sets to carry labels auctions will raise $26.3 billion,"
warning that their days may be numbered says one Hill staffer. "Congress is
going to have to do one of two
By Paige Albiniak key (D- Mass.). things: take it out of taxes or take it
WASHINGTON They oppose using out of programs such as Medicare
spectrum auctions and Medicaid."
HOuse Democrats are pushing leg- to meet budget Support for the Democrats' point
islation that would require TV goals, but want a of view is strong enough that House
sets and VCRs to be equipped to solid give-back date Telecommunications Subcommittee
receive digital TV after 2001 and that if auction revenue Chairman Billy Tauzin (R-La.) last
would mandate labels on new analog remains in the bud- Thursday postponed subcommittee
NTSC equipment warning that it will get. They also argue Markey: Spectrum action on the broadcast -related part
become obsolete after 2006. that extending the auction estimates are of the budget.
The legislation comes in response to give -back deadline 'pure fantasy.' Tauzin remains unsure of Re-
the federal budget package, which is would devalue the spectrum. publican support, says aide Ken John-
counting on $26.3 billion from the auc- "This budget- driven proposal is pure son. If Tauzin doesn't have the votes
tion of the analog broadcast spectrum fantasy," says Representative Edward when subcommittee members recon-
in 2001. Markey (D- Mass.), ranking member on vene on Tuesday, he may move the leg-
The budget would require winning the subcommittee. islation to full committee Wednesday.
bidders to pay immediately after the auc- "If we are serious about a 2007 spec- Tauzin tried to assuage Democrats
tion, but would not allow them to take trum return, then we ought to take steps by proposing a measure that would
possession of the spectrum until more to accelerate acceptance for digital throw out spectrum auctions that failed
than 95% of the people in a market could television in the consumer market," to bring in at least two- thirds of mini-
receive digital TV signals. Democrats says one Democratic House staffer. mum revenue called for by the Con-
say the provision could keep winners Republicans believe the Democrats' gressional Budget Office.
from receiving their spectrum far past goal is not to protect consumers, but to The legislation also would give the
the planned 2006 conversion date. keep spectrum revenue out of the bud- FCC expanded authority to decide when
Leading the effort for a DTV recep- get. spectrum auctions should be held and for
tion requirement and warning labels Markey plans to open another attack what portion of spectrum. Dingell would
were Representative John Dingell (D- Tuesday by introducing legislation that also give the commission authority to set
Mich.) and Representative Edward Mar- would require shortfalls from spectrum minimum limits on auction revenue.
Broadcasting & Cable June 9 1997 7
/11111/111 ì
1011;11
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American Journal
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Montel
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Source WRAP Metered Macet Kaports - OMA KR Raotq 01997 Nrt 9 World All Rotes fbsery rdTop of the Week
side for ?" with the tag line "Life is
ABC affiliates meeting: short. Watch TV." A thank -you spot
says, "You could be reading a book,"
or getting exercise or engaging in sev-
eral other productive activities. "But
`Bloodbath and love fest' you're not," the spot concludes.
"You're watching TV. Thanks."
Although station executives laughed
Image campaign stirs controversy; network to foot bill for at some of the spots, they were con-
decoders, which would have cost each station $150,000 cerned. "If the viewer doesn't get it, the
whole thing falls short," KSTP -TV's
Aiken said.
By Steve McClellan ed one sore point when they decided to A network spokesperson said affili-
postpone action on program exclusivi- ates "overwhelmingly" supported all
ORLANDO
ty. Affiliates of all the networks are but the "reading is overrated" spot. The
F,)F the second year in a row, ABC concerned about network talent and campaign was created by TWBA
managed to charm its way out programing showing up on network - Chiat /Day, the network's new ad
what could have been a confronta- owned cable services. agency.
tional meeting with its affiliates, given Padden and company president Also at the closed session, news
the network's programing troubles. Robert Iger will jointly spearhead the division chairman Roone Arledge
"It was probably somewhere exclusivity issue for ABC and will try promised more major changes at strug-
between a bloodbath and a love fest," to come with a plan in the next 30 to 60 gling Good Morning America "soon."
quipped Ed Aiken, general manager. days. officials said. Padden promised There were no specifics, but most
KSTP -TV Minneapolis. believe the show will get a new
The network did throw the executive producer (Marc
affiliates one large bone last Burstein currently fills that
week. It agreed to pay for
decoders that affiliates will
Life is short, watch TV. role) and probably two new
hosts. Joan Lunden's departure
need to receive ABC digital was announced two weeks ago,
TV feeds. The price tag is esti- and word is that Charles Gib-
mated to be nearly $30 million. son also wants a new gig.
according to Preston Davis, The network tried unsuc-
president of broadcast opera- Affiliates reviewed spots for ABC's new image campaign, cessfully to lure Jim Nantz
tions and engineering, ABC. one of which includes the slogan shown above. but from CBS for a role that would
The average per -station another spot, declaring that 'books are overrated. will not include hosting GMA. Nanti
cost of digital decoders will see the light of day. declined. Rumor is that
be around $150,000, Davis Arledge also has inquired
said. The network has issued a request to inform affiliates of any planned pro- about Connie Chung's interest, now
for proposals by manufacturers. Affili- gram repurposing before a general that the syndication show she had
ates would have to choose the decoder agreement on the issue is worked out. planned to do with husband Maury
designed by the winning bidder to The meeting's biggest controversy Povich has been scrapped.
qualify for the reimbursement, to be was the network's 1997 -98 image cam- Disney Chairman Michael Eisner
paid over five years. paign, a tongue -in -cheek celebration of delivered upbeat remarks at the ses-
Newly appointed ABC Network the couch potato. Because of affiliates' sion, saying he feels more confident
Television President Preston Padden concerns, ABC promptly agreed to kill about ABC's ability to come back than
said that he and Davis will work hard one spot in the campaign that said, he did a year ago. He also told affiliates
during the summer to come up with, if "books are overrated." At a closed that ABC is worth more now than
not a plan, "at least a collection of meeting last Thursday, roughly half of when Disney bought the company
thoughts" on how to proceed with digi- the affiliates polled said they were con- early last year. "I'm glad we under-
tal TV implementation, and then begin cerned that they would, as one source paid," he quipped.
a dialogue with affiliates. put it. "get hammered by critics of the Padden was well received by affili-
Most affiliates seemed content to industry" in reaction to the spot. ates. "He struck just the right tone,"
give of ABC Entertainment President Another spot features a teenager said Barrett. "He realizes the business
Jamie Tarses' first development season watching television. The announcer challenges are different at ABC than
a chance to work in the fall before com- reviews several alternative activities: at Fox."
plaining. having unsafe sex, getting a tattoo or In a speech to affiliates, Padden
David Barrett, the Hearst Broadcast- getting body- pierced. Then the tag line stressed his intention to work with
ing executive who succeeded Cox's appears: "TV, not such a bad thing." them to forge a successful future. "In
Andy Fisher as chairman of the ABC Another spot zooms in on an electric the past, some arrogant and unin-
affiliate advisory board last week, said bug zapper. After a mosquito is formed critics-like me -have charac-
he came away believing "there's a zapped, a tag line reads: "TV. What terized the three older networks as
renewed emphasis on product and cre- would you watch without it ?" -
'dinosaurs, he said. "1 did not leave a
ativity" at ABC. Another spot follows a facetious . company that I loved to become cura-
The network and its affiliates avoid- "It's a beautiful day. What are you out- tor at Jurassic Park."
12 June 9 1997 Broadcasting & CableCONGRATULATIONS
DAYTIME EMMY WINNERS!
THE OPRAH WINFREY SHOW
OUTSTANDING TAIF, SHOW
DIANNE ATKINSON HUDSON, EXECUTIVE PRODUCER
OPRAH WINFREY, SUPERVISING PRODUCER
ALICE MCGEE, SUPERVISING SENIOR PRODUCER
ELLEN RAKIETEN, SLPERVISING SENIOR PRODUCER
LEGRANDE GREEN, SUPERVISING SENIOR PRODUCER
DANA NEWTON, SUPERVISING SENIOR PRODUCER
DAVID BOUL, SENIOR PRODUCER
KATY MURPHY DAVIS, PRODUCER
ANGIE KRAUS, PRODUCER
OUTSTANDING DIRECTING IN A TALK SHOW
DUKE STRUCF., DIRECTOR
OUTSTANDING GRAPHICS AND TITLE DESIGN
THALIA KALCDIMOS, TITLE DESIGNER
HARRIET SEITLER, IIrLE DESIGNER
SUZANNE KILEY, TITLE DESIGNER
OUTSTANDIN3 HA.RSTYLING
ANDRE WALKER, HAIRSTYLIST
OUTSTANDING MULTIPLE CAMERA EDITING
MICHAEL MABBOT :, EDITOR
JOHN STROL.A, EDITOR
JOSEPH PUGLISE, EDITOR
K/lVGwaRLD
01997 [Irle We.a.. 11 9iwr. R=.9lr.s
www.americanradiohistory.comTop of the Week-
Upfront sales hit $6 billion
TV networks show good gains over last year's market
BySteve McClellan Brooklyn South, the police
ORLANDO SEVEN YEARS OF UPFRONT GROWTH drama from Steven Bochco.
(Dollars in billions) The opening episode has 15
The broadcast TV net- minutes of some of the most
works have completed violent footage ever produced
their third consecutive for a TV series, but Abruzzese
record upfront sales season. says buyers recognize the pro-
reaching $6 billion for the first gram's overall quality: "ABC
time. Sales executives credited really laid the groundwork for
the continuing strong economy acceptance of such shows with
and the fact that the four net- [Bochco's] NYPD Blue." In its
works are still the only TV first year on the air, Blue fre-
vehicle that reaches virtuall quently aired with a lot of its
all TV homes. inventory unsold. But adver-
The car, movie, packaged tisers came around after the
goods, retail and fast -food cat- show caught on with viewers.
egories are all said to be
strong, with increased spend- Fox also
ing over last year. s h o w e d
The most ex-
v strong gains,
raking in $1.1
pensive show billion in commitments, up
on television is from about $960 million a
NBC NBC's Seinfeld. which
agency executives esti-
ABC pulled in the second -
biggest piece of the pie,
year ago. "With all the firepower aimed
at the networks by its competitors, the
mate costs about $600,000 per 30 -sec- with $1.6 billion in upfront results are a pretty good vote of
ond spot. The most sought -after new upfront commitments. confidence," says Jon Nesvig, head of
shows, they say, include the Gregory "That's slightly up from sales at Fox.
Hines and Kirstie Alley sitcoms on last year, which is a miracle,
NBC, Dawson's Creek on The WB given our 12 percent ratings shortfall," In the battle of the new
and Dharma & Greg on ABC. says Marvin Goldsmith, head of sales networks, The WB gar-
On the flip side, NBC's Thursday for ABC. nered $150 million in
night newcomer, Union Square. is Goldsmith says ABC sold about Nr upfront commitments, up
said to be "universally despised," as 85% of its inventory at CPM rates that from $100 million last
one buyer put it, but advertisers were up 7 % -9 %: "We are very happy year. Jed Petrick, head of sales, says
bought it anyway, betting that its and, really, all four networks have the results reflect the network's effort
replacement show will deliver solid good reason to be proud of what they this year to "broaden out" its prime
ratings. accomplished these past two weeks." time schedule to draw not only teens
NBC once again had the biggest but 18-34- year-olds in large numbers.
share of the market, raking in about CBS did about $1.25 bil- Shows like Dawson's Creek and
$2.1 billion, up from a little over $2 bil- lion in business, up from Ocean Drive are designed to do that, he
lion last year. The network also set the $1.18 billion. The up- says, adding that the strategy enabled
pace in cost- per -thousand (CPM) front sales do not in- The WB to get a significant amount of
gains: 13 % -16 %. "Network television clude the Nagano Olym- car business that wasn't there last year.
is the single most valuable marketing pics, which already have
tool," says Larry Hoffner, head of net-
work sales for NBC, to explain the
strength of the market.
Hoffner says NBC sold roughly
generated $500 million. CBS sales
chief Joe Abruzzese says that figure
will climb to $550 million by the time
the games begin in February.
c UPN- selling one
hour less than rival
WB-sold $135 mil-
lion worth of inventory for three nights
77% of its inventory and thus is well Abruzzese was surprised that CBS of programing, up nearly 20% from last
positioned to capitalize on what he generated $130 million in new busi- year. The network won't start selling
thinks will be a strong upfront market ness, just over 10% of its total take, the fourth night of programing, which is
as well: "It was OK this year, and I from this upfront sales season. "That set to launch in 1998, until later.
don't see anything on the horizon to had less to do with sheer salesmanship Roughly 50% of the buyers are new,
indicate a weakening economy." Scat- and more to do with the shows that Les says UPN, which also reported strong
ter sales may add another $700 million Moonves put on the schedule," he says. gains in the 18 -34 demographic. It
to the network coffers next season, One of the hottest-selling new shows expects to retain 15 % -20% for scatter
executives say. on the schedule, Abruzzese says, is sales.
14 June 9 1997 Broadcasting & CableCONGRATULATIONS
DAYTIME EMMY WINNERS!
WHEEL OF FORTUNE
OUTSTANDING GAME SHOW HOST
PAT SAJAK, HOST
OUTSTANDING DIRECTING IN A
GAME /AUDIENCE PARTICIPATION SHOW
DICK CARSON, DIRECTOR
JEOPARDY!
OUTSTANDING SPECIAL CLASS WRITING
TERRENCE MCDONNELL, HEAD WRITER
STEVEN DORFMAN, WRITER
KATHY EASTERLING, WRITER
DEBBIE GRIFFIN, WRITER
JEFF PIERSON, WRITER
FREDERIK POHL IV, WRITER
STEVE TAMERIUS, WRITER
BILLY WISSE, WRITER
K/NGWDRLD
7907 Il,. We.n. 11I Ie.e.ree.
www.americanradiohistory.comTop of the Week
responded.
Mundt has not left the building Hundt also continued
to press for FCC action on
televised liquor advertis-
Outgoing chairman seeks FCC action on ing. The proposed inquiry
alcohol ads, political airtime and TV news invites comments on tele-
vised liquor ads and also
By Chris McConnell Radio -Television News raises the prospect of
WASHINGTON Directors Association, employing V- chiptype
welcomed the idea of new technology to block the
Reed Hundt is not through with legal protection but spots, FCC sources say.
television yet. objected to Hundt's as- Hundt wants to issue the
The outgoing FCC chairman sessment of TV journal- inquiry at the commis-
last week pressed for government ism. sion's June 19 meeting.
action on a series of TV fronts, includ- "Broadcast journalism although Commissioners
ing broadcast liquor advertising, free is in no way a second -class Rachelle Chong and James
airtime for candidates and a new -in form of journalism," Hundt shows no sign Quello have opposed the
twist -TV news. Cochran said in a letter to of slowing down his action.
activist agenda.
"Wouldn't we all be better off if Hundt. She added her Last week. Hundt took
broadcast news was a lot more like group would oppose any government aim at arguments that FCC action
print journalism ?" Hundt asked during intervention into TV news. would run counter to the First Amend-
a speech to the Museum of Television Also objecting to proposed govern- ment. "That is offensive to the spirit of
& Radio in New York. ment initiatives last week was NAB the First Amendment." Hundt said.
Hundt noted that the broadcast busi- President Eddie Fritts, who responded "I was highly offended by the Chair-
ness has few traditions along the lines of to Hundt's calls for free airtime. Hundt man's remarks," Chong said of the
such print practices as ombudsmen and said he hopes the FCC soon will launch statement.
letters to the editor. "I wonder if we a notice of inquiry to explore public "He has a strange interpretation of
don't need now and in the digital future a interest obligations of spectrum users. the First Amendment." added Quello,
stronger and more well developed set of He discussed the planned action who said the Federal Trade Commis-
industry-led principles," he said, adding after 30 House members urged the sion is investigating the issue.
that the ethical issues "ought to be exam- FCC to explore new broadcast public Quello maintained that an FCC
ined openly and candidly by government interest obligations inquiry would be a duplication of
and by TV news as an industry." Hundt applauded the letter and, in a efforts. He has not yet decided whether
Hundt also suggested stronger First later speech. said the FCC will begin to pull the inquiry from the FCC's
Amendment protection for TV news. action on the public interest issue this agenda or to vote against it on June 19.
"Perhaps Congress or the FCC should summer. "I very much hope that effec- A Hundt aide, meanwhile, cited a let-
hold hearings on the topic...to ensure tive and creative stump-time proposals ter from the U.S. Catholic Conference
that [journalists] go about their busi- will emerge from this process," Hundt supporting the inquiry. "We thought
ness without being chilled by the threat said. they would pause before rejecting out of
of litigation," Hundt said. "The FCC does not have the author- hand the wise counsel of the bishops of
Barbara Cochran. president of the ity to mandate political time," Fritts the Catholic church," the aide said.
Arlo
FCC chairmanship watch
CA,ii
O oo
i Kathleen Waltman and Bill Kennard
continue to top the list of likely
sioner of their own -possibly the rural representative
that many want. Sources say no such deal was on the
'.
a.
White House choices for the FCC
o table last week, however.
us helm, but Senate Democrats appear But many expect new names to surface as White
to be having none of it. House officials seek to avert a Senate standoff over the
The senators are disenchanted with White House FCC package. Last week former congressman and
telecommunications policy, and sources say word of a Washington lawyer Dennis Eckart's name surfaced as
possible SBC/AT &T merger has only heightened their a possible nominee, but Eckart says he isn't interested.
objections to a possible Kennard/Wallman combo at Back at the FCC, the question of Reed Hundt's post -
the commission. (Kennard already has been nominated commission career remains a mystery. One long- stand-
for an FCC seat.) ing rumor-which Hundt has denied -is that Microsoft
Senator Ernest Hollings (D -S.C.) continues to push chief Bill Gates will hire him. After a Washington appear-
Ralph Everett for the chairmanship, and some sources ance last week, Gates was asked if the rumor is true.
say his odds improved last week. But others doubt that Gates hemmed and hawed. How about yes, no or
Vice President Gore will cede the choice for chairman maybe? Again, much wincing and hesitation. OK, Mr.
to the Senate. Gates: Have you talked to Reed Hundt? Clearly
One scenario: The White House picks Kennard for relieved, Gates replied, "I've talked to him, but not
chairman and lets Senate Democrats pick a commis- about that. " -- CM,EAR
16 June 9 1997 Broadcasting & Cable
www.americanradiohistory.comTop of the Week
Promotion pitches its state of the art
Trends evident at Promax convention; brand cross- promotions, use of PSAs and the 'Net
By Cynthia Littleton, syndicated newspaper column.
John Eggerton and No doubt Hundt would have
Joe Schlosser been heartened by a new promo-
tional trend evident at Promax this
CHICAGO year. Public service spots are
TV marketers gathered in Chica- included in regular station press
go last week to plot strategies kits for several high -profile new
for allocating at least $500 mil- series, including Eyemark Enter-
lion worth of advertising and promo- tainment's Martha Stewart Living
tion for syndicated programs pre- and Pensacola: Wings of Gold and
miering and returning this summer CTTD's Vihe. Altruistic motives
and fall. aside, marketers say PSAs are a
It takes a brand to sell a brand-that great way to get more exposure,
was the message behind extensive with a vehicle that reflects positive-
cross -promotional campaigns out- ly on station and show.
lined by distributors at the industry's The Internet shows no signs of
annual marketing brainstorming ses- slowing down as the promotional
sion, the Promax International confer - vehicle of choice for many mar-
ence, June 4-7. keters. Martha Stewart is launching
Columbia TriStar Television her first official Website
Distribution unveiled a wide -rang- (www.marthastewart.com) in con-
ing alliance with Anheuser -Busch junction with the expansion of her
to promote the new late -night strip Columbia is mounting its largest -ever how -to show from a weekly to a
promotion for the new late -night strip, 'Vibe.'
Vihe with everything from radio CTTD President Barry Thurston and 'Vibe' strip.
contests to live events. CTTD is executive producer David Salzman were on Twentieth Television's new
mounting its largest -ever promo- hand at Promax for the unveiling. promo catchphrase for the Oct. 18
tional blitz for a first -run strip for broadcast syndication launch of
Vibe's debut in early August, studio The X -Files is also the address for a
officials said last week. network launch of Carsey- Werner Website set to surface in mid -August:
As a result, Vihe has become a prior- Distribution's Grace Under Fire. www.its-happeningagain.com.
ity for all Sony divisions. Upcoming Worldvision Enterprises Pictionary is Warner Bros. is pulling out all the
Sony home video releases will carry partnering with Universal Studios stops for the online component of its
Vihe trailers, as will selected Sony -dis- Florida for a watch- and -win contest revival of The People's Court. The
tributed theatricals this summer, that calls for Pictionarv' to tape a show will be carried live in many East
including the much -anticipated Will week of shows at the theme park. Coast markets to allow the anchors to
Smith/Tommy Lee Jones action -come- Saban Entertainment put some take live calls, e-mail and fax queries
dy "Men in Black." high -power FCC -friendliness behind and comments from viewers. The
All American Television is linking its promotional kickoff for The All - People's Court Website will be fully
up with more than 750 Target stores New Captain Kangaroo, complete integrated with the show, offering
nationwide to spread the word about with a videotaped endorsement from users the chance to render judgments.
the Sept. 8 debut of its talk show strip outgoing FCC Chairman Reed Hundt. offer opinions on past cases and hold
Arthel & Fred with shopping spree Hundt said he is "delighted" with the live "chats" with other viewers.
giveways and holiday -themed promo- return of the show, whose resurrec- In other Warner Bros. related news
tions throughout the season. Buena tion he attributed to the fight he and from the convention, the studio
Vista Television has similar plans in his staff led to approve the new three - announced that comedian Paula
the works with the Best Buy electron- hour weekly mandate for children's
ics chain for Honey, I Shrunk the educational TV.
Kids The Series. Noting that the original Captain
Poundstone will become a roving
reporter -in more ways than one
for The Rosie O'Donnell Show this
-
MCI has hitched its wagon to Tri- Kangaroo's Mr. Green Jeans had fall. As the show's special correspon-
bune Entertainment's Gene Rodden- been his favorite character, Hundt dent, Poundstone will travel from city
berr'v's Earth: Final Conflict, said he was looking forward to intro- to city in search of Americana and
promising to cross- promote the futur- ducing the new show to his eight - local color, offering field coverage of
istic sci -fi drama with advertising for year -old daughter. The new Kanga- everything from chili cookoffs to folk
its cutting -edge communications ser- roo show will have product tie -ins music festivals. Poundstone also will
vices. Montgomery Ward, No Non- with pillowcases, pajamas and back- be on the lookout for natural promo-
sense Pantyhose, Wella Hair Products packs; Saban also is in talks with tional tie -ins and stunts in markets
and a soon- to -be- announced U.S. King Features to have the new Cap- where the show faces stiff competi-
automaker are on board for the off- tain, actor John McDonough, write a tion.
Broadcasting & Cable June 91997 17
www.americanradiohistory.comop of the Week
to
TCI looks
buy 30% of WASHINGTON
iøse March, News Corp. has said it will
retain only Heritage's in -store and
MSTV has digital
Cablevision problems
direct -marketing companies.
DALLAS
By John M. Higgins and Bruadcasters are planning to ask
Price Colman the FCC to reconsider portions Stern does Dallas
of its digital TV rules and channel
Dallas radio insiders say Howard
iming to surround New York assignments. The Association for
Stem's on -air ruminations about
A ('ity with copper and fiber.
Cablevision Systems Corp. is
negotiating to sell a 30 % -35% equity
Maximum Service Television says it
has identified a series of interfer-
ence and signal coverage snags. The
possibly losing affiliate KEGL(EM)
Dallas when his contract is up may
be a negotiating tactic. One Dallas
stake in the company to Tele- Commu- group will not be asking the com-
GM says Stem may be "maneuver-
nications Inc. in exchange for the Den- mission to scrap the allotment and
ing" for improvements in the con-
ver -based operator's lucrative subur- assignment table it issued earlier
tract he's had with KEGL owner San-
ban New York operation. this year, but will be citing several
dusky Radio since 1992 and which is
TCI would pick up II million -14 areas where technical fixes are nec-
due to expire Sept. 7. Since January,
million shares of Cablevision's stock. essary. The broadcasters plan to
KEGL has been operated by Nation-
worth $365 million -$465 million at submit their request to the FCC on
wide Communications, a division of
Friday's prices. More important. TCI June 13.
Nationwide Insurance, which plans
Chairman John Malone would be able to close on its option to purchase
DENVER
to shift about $400 million in debt to KEGL in coming months. Another
Cablevision along with the properties. Cap crises? radio insider says Nationwide may
furthering his goal to cut TCI's lever- CI's deal frenzy could push the be prepared to drop Stern, despite his
age from about six -times annual cash 1 company right through the consistently strong morning drive
flow to less than five- times. FCC's cap on cable ownership. ratings, because he "scares away"
At the same time, Cablevision With control of systems serving some local advertisers. Stern says if
Chairman Charles Dolan would about 17.5 million subscribers, TCI he is dropped by KEGL, he'll likely
enhance his 1.7 million -subscriber already serves 27% of the country's lose his voice in Dallas. However,
concentration in the New York market. 65 million cable households, just some are skeptical of that scenario,
adding about 400,000 ICI customers below the 30% cap. But projected since CBS Radio, which employs
in high- income parts of Westchester pooling of systems with other opera- Stern, also operates six radio stations
County, N.Y.; Connecticut, and north- tors could push TCI past that limit. in the market.
ern New Jersey. The MSO's pending deal to swap
"It buys him, basically, dominance systems for one -third of the 2.8 mil- CHICAGO
of the New York market," said one lion- subscriber Cablevision Sys-
industry executive. "It lets him do It's who you know
tems Corp. alone could blow the
whatever he wants with SportsChannel WHiking with spouts icons has its
cap. Operators have successfully
New York and MSG Network almost privileges, as Twentieth Televi-
challenged the cap in court, but the
without resistance." sion chief Rick Jacobson discovered
feds are appealing the district
ICI and Cablevision would not court's ruling.
last week during the Promax conven-
comment. tion in his hometown of Chicago.
The deal is one in a series of transac- WASHINGTON Like many convention -goers, Jacob-
tions TCI is negotiating with other son, whose Fox division is launching
operators to parcel out $7 billion worth For sale a daytime strip with NFL legend
of its systems. ICI President Leo Hin- mews Corp. is hoping to find just Terry Bradshaw and a late -night
dery believes the various transactions one buyer for Heritage Media vehicle with NBA great Earvin
will put the systems in hands that might Corp.'s five TV and 24 radio sta- "Magic" Johnson, had no luck scor-
run them better and increase their tions. Barring that scenario, one ing a pair of tickets to the second
value. buyer for each group, TV and radio, game of the Chicago Bulls/Utah Jazz
But just as important is the need to is the next acceptable option, says a NBA finals last Wednesday. He
reduce debt. Hindery's goal is to shed source close to the deal(s). Look for appealed to Johnson for help. A few
$4.5 billion in debt through these a final decision in the next several hours later, an envelope from NBA
deals. weeks. Meanwhile, the FCC Commissioner David Stern was
ICI last Friday to announced a joint released documents describing delivered to Jacobson's hotel.
venture with Adelphia Cable Commu- News Corp.'s plans to put the sta- "Magic made a call," said a beaming
nications, in which the two operators tions in trust in anticipation of sell- Jacobson shortly before he headed to
would combine roughly 465,000 sub- ing. William G. Evans was named the United Center to watch the Bulls
scribers in upstate New York and trustee. Since it bought Heritage in beat the Jazz, 97-85.
Ohio.
18 June 9 1997 Broadcasting & Cable
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www.americanradiohistory.com-mop of the Week
licenses. The commission had denied
Publishers challenge Disney's bid to own newspaper and
radio properties in Michigan and
Texas but said it planned to review
common ownership bars the newspaper/broadcast crossowner-
ship rule soon.
"Our current strict prohibition on
Print media seeks end to spin-off freli- newspaper /broadcast crossowner-
ship...needs review and probably needs
By Chris McConnell significant revision," FCC Chairman
WASHINGTON Reed Hundt said in February 1996.
The initiative received little support
G:tnnett has sold a newspaper in at the time, however. Broadcast indus-
Niagara Falls, N.Y., and a TV try views on the rule were mixed, and
station in Cincinnati. Media the issue soon faded from the commis-
General has unloaded its CBS affiliate sion's agenda. Last fall, the commis-
in Richmond, Va. In Miami. Tribune is sion turned its attention to the
fighting an FCC order to sell either a crossownership rule, but proposed only
newspaper or a TV station. modifying its policy for waiving the
The publishers want the FCC to stop rule to allow for newspaper /radio com-
the spin -off frenzy. In recent weeks, binations.
they have stepped up their case at the While FCC interest in eliminating
FCC and in Congress to eliminate the rule has fizzled since early '96,
the rule barring newspaper industry interest in the rule
common owner- has grown as companies have taken
ship of newspa- advantage of the loosened ownership
pers and broad- rules enacted in the 1996 Telecommu-
cast properties. nications Act.
"The notion that "For the most part. anybody could
the newspaper is John McCain has sponsored a own anything," Sturm says of the act,
CROSS bill to eliminate the
the dominant medi- adding that his group turned its attention
um has been pretty MEW
erai
newspaper, broadcast
crossownership rule.
to the newspaper/broadcast crossowner-
watered down," s ship rule after Congress declined to
says Tribune lobby- CROSSROADS interest in the rule stems in eliminate it in the telcom act.
ist Shaun Sheehan. part from the headaches it The newspaper group has focused its
On Oct. 31. Shee- has caused mega -media efforts on Congress as well as the com-
han's company will giants. He also cites an mission. Earlier this year, Senator John
take aim at the rule in interest by some newspa- McCain (R- Ariz.) introduced a bill to
the U.S. Court of per owners in buying TV axe the restriction. Since then, the
Appeals in Washing- stations in the markets newspaper publishers have been press-
The Media Institute says the
ton. Tribune hopes to crossownership rule is where they publish. ing for a House version, which they
convince the court it counterproductive. "There are some effi- hope to see from Representative Scott
should he allowed to ciencies that they can Klug (R- Wis.).
own both the Fort Lauderdale Sun - bring to the marketplace." he says. "If The push comes as others are oppos-
Sentinel and wurt.(Tv) Miami. the opportunity existed, certainly we'd ing further relaxation of broadcast
And the company is not alone in its be interested," adds Media General ownership rule. "The diverse universe
crusade against the rule. More than 30 Vice President Bob Pendergast. is grossly overstated." says Gigi Sohn
board members of the Newspaper Additionally. Sturm points to medi- of the Media Access Project. FCC
Association of America have agreed to um -size newspapers that are looking to Commissioner Susan Ness -the only
ask the FCC to eliminate the restric- diversify into radio. commissioner not headed for the
tion. Knight -Ridder called for a review "Newspapers ought to be back in the exit -also has opposed allowing local
of the rule even as it opposed Tribune's game," says Tim Kelly. publisher of TV /newspaper combinations.
bid to keep the Miami properties. Later the Knight -Ridderowned Lexington Last week, the newspaper group
this week, Gannett Chairman John Herald-Leader. Kelly cites radio con- received some support from a Media
Curley will discuss the restrictions dur- solidation in Lexington, Ky., as well as Institute report. Written by Media
ing a Washington luncheon speech. in Louisville. Ky., and Cincinnati. He Institute Vice President Richard
The industry's interest in the rule says his newspaper should be allowed Kaplar, the report noted the growth of
follows a string of media mergers that to load up on media properties along cable and other media outlets in argu-
have forced companies to sell broad- with the broadcasters. ing for elimination of the rule.
cast and newspaper properties in order "What's fair is fair," says Kelly. Kaplar says that such an action would
to comply with the ownership rules. "It's just an outdated rule." allow other companies to compete fairly
"There's a sense of urgency," says Early in 1996 the FCC looked like with firms that already own local news-
John Sturm, president of the newspaper it might be willing to let the newspa- paper and broadcast properties under
group. Sturm agrees that his group's per companies own local broadcast FCC "grandfather" provisions.
20 June 9 1997 Broadcasting & Cable
www.americanradiohistory.comop of the Week
1997 has been approved by the House
Software leaders Judiciary Committee. But the White
House opposes SAFE and a Senate ver-
sion. the Pro -Code Bill.
take program to D.C. "Getting [encryption] reform now is
a huge priority for all of us." Schmidt
said. Without it. "we are sentenced to
Gutes, Grote et al., seek encryption reform, being behind."
intellectual property protection "We're 1also1 very keen on anything
related to piracy." both
By Elizabeth A. Rathbun trekking to Capitol Hill. inside and outside the
WASHINGTON Then. "we had to U.S.. Gates said. It's
explain who we were time to stop people
Top sot t\ \are industry executives and we had to fight for from "spewing stuff
last week presented a unified just recognition." Now, on the Internet," he
front to Congress and Vice Presi- "that has changed dra- said of unauthorized
dent Gore in pressing their agenda for matically.... We have software.
encryption -law reform and copyright audiences and atten- If any other industry
and piracy protection. tion." he said. billion in
had lost $11.2
The executives also faced the press Nevertheless, indus- 1996 -the estimated
last Wednesday between meetings with try executives said worldwide loss of
senators and Gore. Among the industry they are frustrated by packaged business soft-
leaders were Bill Gates. chairman. the plodding pace of ware to piracy -"peo-
Microsoft Corp.: John E. Warnock, Congress. Senators Bill Gates met last week with ple would be furious."
members of Congress and
chairman. Adobe Systems Inc.: counseled patience. key the vice president.
said Carol A. Bartz,
Andrew S. Grove. chairman. Intel but "patience is not chairman, Autodesk
Corp.. and Jeff Papows, president, one of our virtues." Grove said. Inc. `But we aren't getting the same kind
Lotus Development Inc. Encryption policy, for example. con- of support for our industry.... The soft-
George S. Bentley. president. Bentley sists of "outdated laws and regulations ware industry continues to get stolen
Systems Inc.. said the executives were that have been on the books since some blind."
gratified by their Senate welcome. They of us were born," said Eric Schmidt. The administration was particularly
stet xwith Democratic and Republican chairman, Novell Inc. The software supportive last year in helping cut pira-
leaders and "all the committee chairpeo- group is united in supporting bills that cy in China. Bartz said. This year,
ple. [That.] we think, is rather unique." would ease the encryption export rules. administration support is needed in
And quite a different picture from the he said. The Security and Freedom extending copyright laws to the World
ntid- 1980s. when Grove started through Encryption (SAFE) Act of Wide Web. she said.
CBS recasts on D.C. set vice president of media and employe communications.
Thomson's new title was not disclosed, but the company says
CBS's Marty Franks is giving up his day -to -day lobbying he will remain in a senior post responsible for all lobbying
responsibilities in Washington and taking on expanded duties and other government relations.
in New York. including running a revitalized CBS Founda-
tion. according to CBS's Jack Bergen. senior vice presi- Jackson blasts concentration
dent. In his new post. Franks will oversee CBS's Wash- y,;, Jesse Jackson was at the 1-CC last week calig for a
ash ton
ington office, which will rnu,, moratorium on media concentration. "It is a clear
'
have a new cast. including path toward resegregation" Jackson said of the
a yet- to -be- identified lead consolidation trend. In a letter to
lobbyist. Staff will include Hundt, he criticized the commission
Gail MacKinnon. who was - for not undertaking a study of how
just hired to take over for the 1995 Adarand case affedis FCC
departing Ceci Cole Mclnturff. MacKinnon minority policies. "The FCC in the past few
had been working on Capitol Hill for Tele- years has assembled a record in which it can
Communications Inc. According to one report, take little pride." Jackson wrote, citing a list
Wine Institute's Robert Koch was offered of complaints including a reduction in equal
Edited by Paige Albiniak
Frankss Washington job. but turned it down. and Elizabeth A. Rathbun employment opportunity investigations and
Koch declined to comment. Meanwhile, follow- conditional license renewals. "The commis-
ing MacKinnon's departure from TCI's Washington office. sion has winked at discrimination, permitted the growth of
David Krone. TCI's director of government relations, was monopoly and stood by while the media is being resegregat-
promoted to vice president. TCI is splitting the responsibili- ed." wrote Jackson, who also discussed the media concen-
ties of top lobbyist and PR man Robert Thomson, giving tration issues with President Clinton. Jackson said the FCC
press duties to former TCI PR vice president Lela Cocoros, should stop approving media mergers unless "they serve
who left in January to become NBC's vice president of cor- the public interest by impacting positively on minority
porate communications. Cocoros returns to TCI as senior ownership and diversity of voices."
Broadcasting & Cable June 9 1997 21
www.americanradiohistory.comCOVER S TORY ! SPECIAL REPORT: RADIO SYNDICATION
Syndication Faces
Boom Times
As radio station consolidation drives up the need for quality cost-efficient
programing, group owners, start -up companies and networks compete to meet
the demand and,hopefully, discover the next big talent. In this special report,
BROADCASTING & CABLE looks at who's hot and what's on the horizon.
By Donna Petrozzello
The demand for syndicated radio pro-
graming has never been stronger as
group owners operating clusters of sta-
tions in a single market hunt for quali-
ty shows to put on their airwaves.
Over the past year. groups including Jacor
Communications and SFX Broadcasting have
ventured into managing syndicated radio pro-
graming. Such long- standing syndicators as
Premiere Radio Networks-recently acquired
by Jacor -have expanded by developing new
product and acquiring smaller companies.
Program providers, such as United Stations
Radio Networks, Westwood One Inc. and the
WOR Radio Network, have launched new
shows hosted by personalities well known to
music and media circles. The race to find the
next hit has spurred start -up syndicators to
action and has encouraged radio stations like
wPU(FM) New York to take local acts national.
The result is that more program providers
are vying to develop shows that deliver audi-
ence, ratings and advertisers nationwide.
"There is no question that the radio business
is good and that demand for syndicated pro-
graming is high," says Jacor Communica-
tions Chief Executive Officer Randy
Michaels.
"From both from a clearance and an adver-
tiser standpoint, the acceptance of network
and syndicated radio is at an all -time high,"
says Nicholas Verbitsky, president of United
Stations Radio Networks. "I started in the
network end of the radio business in 1979.
and this is the best I've ever seen it."
Radio's In Crowd: clockwise from top,
center: Don ¡mus, Tom Joyner, Howard
Stern, Rush Limbaugh, Laura Schlessinger
and The Fabulous Sports Babe
22 June 9 1997 Broadcasting & Cable
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