Broadcasting May 2

106 Pages·2012·6.68 MB·English

The Fifth Estate
R A D I O T E L E V I S I O N C A B L E A T E L L I T E
2
Broadcasting May
OtoOOO
in vars
three flat.
Live shots, not hardware, deter- a new SNG van at NAB, talk to us at our
mine a satellite newsgathering van's suite at Bally's.
performance. Or call Charles H. Dutcher, Ill (612)
And since we send twice as many 642- 4645.Or write Conus Communi-
live shots as anyone else, our cations, 3415 University Ave.,
SNG members get twice as re)! Minneapolis, MN 55414.
much for their investment. ), Well show you how to
So. if you're shopping for ® make it go.
CConus Communications 1988.
\1su our NAB Suite at BALLY'S
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1988 B
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elevision. Inc
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They'll
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You could own this town.
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Attract the biggest audiences, and keep them.
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undisputed #1 position.
GOLDEN GIRLS. The comedy that's
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Its the most wanted show in syndica-
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that mean serious business. Who can say
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Now available for Fall, 1990 or 1991.
THE
GOLDEN
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THE TOUGHEST BUNCH
OF MOTHERS ON TV.
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WI. 114 No. 18
Broadcasting May 2
Cable 88: Heady but cautious times
.page 35
Jim Mooney's vision of cable's future...page
38
TV networks turn in house for product
page 40
WIRED With cable penetration at 52 %, new begins on PAGE 43.
programing services launching and new highs for
cable companies in revenue and cash flow, STORER DEAL Tele- Communications Inc. and
industry's future seems to have arrived. But in this Comcast sign definite agreement to buy Storer's
interview with BROADCASTING editors, National cable properties, owned by Kohlberg Kravis
Cable Television Association President Jim Mooney Roberts & Co., for $1.55 billion. PAGE 60.
tells why cable is not "anywhere near peaking."
PAGE 38. LEAVING FOX Derk Zimmerman resigns as head of
Fox Television Stations. PAGE 64.
RKO APPEAL Three FCC commissioners hear oral
arguments in RKO General's appeal of FCC STRATEGIC OUTLOOK Top network, cable, studio,
administrative law judge finding that RKO was unfit radio and technology figures examine future of
to hold licenses for its 14 stations. PAGE 41. broadcasting. PAGE 64.
ALMOST LIVE IN MOSCOW 0 KING -Tv Seattle reporter
Jean Enersen's daily reports on events in Soviet
Union appear live and uncensored -with one
-on
exception Soviet TV PAGE 71.
REMOTE BOOM 0 Giant portable radio remote studios
provide high visibility for growing number of radio
stations. PAGE 74.
Attorney Timothy Dyk (I) argues on behalf of RKO before FCC
Chairman Dennis Patrick. KING AND I o MCA Television and King World
Productions form partnership to develop and
NCTA 88 0 More than 13,000 cable executives and produce programing. PAGE 79.
307 exhibiting companies were expected at
National Cable Television Association's annual SAFE BET 0 Since his initial move into cable 18 years
convention in Los Angeles April 30 -May 3, which will ago, Jim Cownie has bet on industry's future. As
include examination of programing and business outgoing NCTA chairman and president of Heritage
issues, Hill concerns and industry's "odyssey into Communications, it is with assurance that he says it
1990's." Preview, agenda and list of exhibitors was decision that has paid off. PAGE 103.
INDEX TO DEPARTMENTS
Business 60 Fifth Estater 103 Masthead 30 Programing 79
Changing Hands 78 For the Record 85 The Media 64 Special report 43
Closed Circuit 7 In Brief 104 Monday Memo 26 Stock Index 70
Datebook 28 Journalism 71 On Radio 74 Technology 76
Editorials 106 Law & Regulation 67 Open Mike 32 Where Things Stand 10
Fates & Fortunes 98
INDEX TO ADVERTISERS: AFSCME 33 0 Allstate 87 c Americom 80 0 Ameritrust 19 0 Ampex 16 -17 0 Barclays American 53 0 Bayliss Broadcast
Foundation, The John 101 o Blackburn & Co.. Inc. 78 0 Black Entertainment Television 47 o BPME 31 o Buena Vista Television Covers 2.3.4 0 Chapman
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Cover 5
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AIR UNIVERSITY LIBRARY
MAXWELL AIR FORCE BASE, AL
PROPERTY !' !R FORCE
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r INV Sein Media fmw.MMM. lac
(C1osedCirc-.,
1
Although MSO has polled subscribers say revisions do not go far enough and are
Finally?
before, present exercise will be most opposed to bill.) Meanwhile, caught in
Cloud hanging over nominations of comprehensive and systematic and is middle is National Association of
communications attorney Susan Wing and expected to produce benchmark data. Broadcasters, which decided after
FCC staffer Bradley Holmes to FCC Main use will be internal, to guide meeting with network and independent
commissionerships may be lifting. Last operations and marketing. Information representatives that it would write
week Senator Daniel Inouye (D- Hawaii), should prove whether subscribers are as Subcommitte Chairman Robert
chairman of Senate Communications critical of company's operations as some of Kastenmeier (D -Ws.) and encourage him
Subcommittee, told BROADCASTING that he its critics are. to respond to both groups' concerns.
would discuss nominations with White Association felt it was best to pursue that
House. He also indicated that course rather than sign on to letter sent by
announcement ( "something will be Public relations INN Motion Picture Association of
scheduled ") would be made when Senate America, National Cable Television
returns from recess next week. Radio Advertising Bureau's board of Association and National Association of
Public Television Stations that stated strong
directors, during biannual meeting at Hilton
objections to measure.
Head, S.C., this week, will be asked to vote
On verge on final appropriations to mount pro -radio
public awareness campaign. Cost
National Telecommunications and projections have been revised by Warwick In the clear
Information Administration's wide- ranging Advertising, agency organizing campaign,
study of cable television service, expected from $800,000 to $1,100,000. RAB and Test results in reply comments to be filed
to be released in late May or early June, is National Association of Broadcasters, today (May 2) at FCC by TV Answer Inc.,
likely to have good news and bad on issue which already contributed $75,000 each as McLean, Va., should answer questions
of concentration of control. Study "seed" money for campaign ( "In Brief," about possible interference with VHF -TV
reportedly contains figures indicating March 7), have also agreed to split channel 13 from its proposed interactive TV
concentration is probably well below level remaining cost evenly, if full project meets sys:em, according to executive vice
at which Justice Department's antitrust respective board approvals. Some debate president and chief executive officer,
division would feel compelled to act to bar is expected, but RAB board is expected to Steven J. Symonds. In comments
new mergers. That could be considered approve funding. NAB board will vote on responding to TV Answer's request for .5-
good news. Bad news is that level of NAB's share during June meeting in mhz of spectrum between 216 mhz and
concentration is rising rapidly, heading Washington. If approval is given, new 222 mhz (between VHF and UHF bands) to
toward point at which new mergers might campaign will be launched next September operate system, which could be used by
trigger action by antitrust division. during NAB Radio '88 convention in either terrestrial broadcasters or cable
Cable's antitrust lawyers may be aware Washington. operators, National Association of
that they could have more work if Broadcasters and other organizations
Massachusetts Governor Michael Dukakis. complained that proposal did not include
current front runner for Democratic test results assuring that system would be
presidential nomination, is next President. Broad Street back free of adjacent interference with TV
He has criticized Reagan administration for channel 13 and intermediate frequency
what he says is Justice Department's lax Sales of ABC affiliate wrvw(TV) Evansville, interference with channel 10
enforcement of antitrust laws. TInedx..,, aenxdp eCctBeSd asfofiolina.t eO KwLnBeKr -,T VW Louobdbso ck, (BROADCASTING, March 28).
TV Answer has been in operation in
Communications Group, Springfield, Mo.,
Fairfax, Va., in cooperation with Media
Big spender has reached agreement in principle to sell
General Cable TV there, for several
to Broad Street Communications, former
months, with 250 homes now participating.
USA Network will spend some $200 million group owner that sold out to Clear Channel
Test results so far show no interference with
over next two years to acquire new Communications in 1984. Broad Street is
programing. Network will announce at this owned by Richard Geismar and Fred channel 13 and "channel 10 is a non-
issue," Symonds said.
week's national cable convention in Los Walker, veteran broadcasters. Though no
Angeles acquisition of two major pre - price was forthcoming. word on street is
syndication film packages, from Warner that deal may hit $50 million.
and Samuel Goldwyn, which follows similar One done, maybe
deal struck with Tri- Star /Columbia. At this
week's MIP festival in Cannes, France, RKO General hopes to reach settlement
network president Kay Koplovitz and other It's a scramble with competing applicants for its KFRc(AM)
network executives were said to be putting San Francisco at meeting in San Francisco
together co- venture for production of So- called superstation scrambling bill this Thursday (May 5). Ormond Beach,
package of first -run, made -for -cable (H.R. 2848) before House Copyright Fla. -based Daytona Group, principally
movies. Also on drawing board are plans to Subcommittee (see 42) has potential to owned by Norman Drubner and Carl
develop one or more original half -hours cause split in broadcast community Como, has offered $8 million for station.
and hours for network over next two years. Tension was high between independent RKO is proposing to keep $5.6 million and
and network lobbyists in Washington last divvy up remaining $2.4 million among five
week as subcommittee considered new competing applicants. It is same 70 % -30%
version of measure (although it never came deal RKO has made in tentatively settling
Public response to vote) that would differentiate between other cases. According to purchase
network affiliate and independent signals, agreement, if competing applicants have
Tele- Communications Inc. is asking its idea that has Association of Independent not agreed to deal by May 23, either RKO
subscribers what they think of company Television Stations up in arms. (Networks and Daytona can back out.
Broadcasting May 2 1988
7
aere' aings Sto ado
I
I
Solid box indicates item has changed since charged that in 1985 Motorola improperly
last issue. blocked Sony from selling multisystem radios
AM -FM Allocations 10 by asserting two AM stereo patents. Kahn
AM Stereo 10 further alleged that patents in question were
AM -FM Allocations Cable Regulation 10 improperly obtained by Motorola. Motorola
Children's Television 14 dismissed Kahn's charges and said that new
integrated circuits in radios to be released this
During April meeting, FCC changed its rules Comparative Renewal 14 year will solidify C -Quam and stereo in gener-
to allow Class A FM stations moving to elevat- Compulsory License 14 al in AM marketplace.
ed antenna sites to reduce power below 100 Crossownership 14
w minimum to maintain size of their coverage Direct Broadcast Satellites 18
areas. High -Definition TV 18 r Cable Regulation
National Association of Broadcasters has
submitted plan to FCC to allow 60% of class A Indecency 18
stations to double power from 3 kw to 6 kw. Mergers 18 National Cable Television Association is try-
Plan is contained in comments opposing pro- Must Carry 22 ing to maintain status quo in cable regulation,
posal of New Jersey Class A FM Broadcasters Public Broadcasting 22 much of which is based on Cable Act of 1984
to allow more than 60% of class As to double Scrambling 22 and Copyright Act of 1976.
power. NAB opposes New Jersey plan be- Motion picture industry and independent
cause of possible interference with class B Syndex 22 broadcasters, concerned that cable industry
and C FM's where band is crowded. FCC has Unions 22 has become too big too fast, have been push-
released rulemaking authorizing FM's to use ing for stricter regulation of cable until there is
directional antennas, permitting allocation of more competition in delivering cable program-
stations in what would currently be short- ing to homes.
spaced positions. NAB opposed rulemaking, completed. Others said FCC should defer ac- Opposing industries have generated much
saying it would lead to AM- ization of FM band. tion until review is completed and new interfer- heated rhetoric in Washington, especially be-
However, several FM broadcasters comment- ence standards are adopted. NAB board has tween cable and motion picture industry. But
ing disagreed, contending directional anten- called for freeze on additional AM allocations, cable and Hollywood executives are holding
nas would benefit FM radio and public. Com- except where such allocation provides relief meetings to try to resolve differences.
mission said it had no plans to change table of from interference from foreign stations, espe- Cable industry is coming under increased
FM allotments. cially Cuban. congressional scrutiny House Telecommuni-
FCC launched inquiry March 24 into FM cations Subcommittee Chairman Ed Markey
translator service- FM translators rebroad- (D- Mass.) has asked Government Accounting
cast signals to areas where terrain, distance AM Stereo Office to study cable rate increases. Corn -
or obstructions weaken original signal -and ments from lawmakers expressed during Tel -
in meantime, froze applications for new trans- comsubcom hearing in March indicate indus-
lators. National Association of Broadcast- On Jan. 14, FCC rejected recommendation o try's problems on Hill may go beyond battle
ers, alleging widespread abuses in trans- National Telecommunications and Information with home satellite industry (BROADCASTING,
lator market, petitioned FCC for Administration that Motorola's C -Quam AM April 4). It was first of three oversight hearings
changes in rules; others stereo system's pilot tone be protected from subcommittee plans to hold on status of cable
pressed for expansion of ser- possible interference. industry three years after passage of Cable
vice to allow for local origina- Petitions to adopt single Act. Second is scheduled next week (May 11).
tion. AM stereo system and to Allegations that cable industry has been
FCC initiated inquiry on ex- mandate multisystem ra- anticompetitive were subject of congressional
tension of domestic AM band dios were also reject- hearing in March by Senator Howard Metzen-
by 10 channels from 1605 khz ed. baum (D- Ohio), chairman of Senate Antitrust
to 1705 khz with target for im- i l In explanation Subcommittee. Metzenbaum warned industry
plementation July 1, 1990. Corn- of recommenda- that unless situation changes, he may offer
mission proposed that some tion, Chairman legislation to curb what he sees as cable's
new channels could be re- Dennis Patrick and growing anticompetitive behavior.
served for national AM radio ser- Commissioner FCC has adopted new rules defining more
vices. James Quello said narrowly those television markets where, in
FCC amended its rules last November to that C -Quam is al- accordance with Cable Act, rates of cable
allow approximately 800 AM stations on re- ready close to be- systems cannot be regulated because sys-
gional channels and 940 khz and 1540 khz to ing de facto standard because 100% of re- tems are subject to effective competition. FCC
operate at night with 500 watts. Earlier, corn- ceivers can receive it and most AM stereo opened rulemaking in response to U.S. Court
mission had authorized 21 of 41 AM's on stations transmit it. of Appeals, which upheld FCC's basic ruling
foreign clear channel 1540 khz to operate at Multisystem radios receive signals generat- that effective competition exists where three
night. Actions are part of steps to allow night- ed by two incompatible systems battling to be broadcast signals are available. But it said
time service near lowest post- sunset power de facto standard -C -Quam and Kahn Com- that definition of available was too broad.
for 1,600 -1,800 of country's 1,900 daytime - munications' single -sideband. NTIA report Parameters of local cable regulation are
only AM stations. According to commission, said that although there is no inherent degra- also being reset outside Washington. Two fed-
further actions will be taken to clear several dation of sound quality in multisystem corn- eral judges in northern district of California, in
hundred more AM's to operate at night. In July pared to single- system radios, implementa- decisions issued in September 1987, ruled
1987, NAB filed comments at FCC supporting tion of multisystem technology is not feasible cities' cable franchise provisions requiring ca-
authorizations but saying FCC should autho- because of lack of support among radio man- ble operators to provide access channels and
rize new nighttime service on interim basis ufacturers and dominance of C -Quam system universal service and to build and maintain
until comprehensive review of AM interfer- in international marketplace. In filing with FCC state -of -art cable systems violate cable opera-
ence standards in separate proceeding is in December 1987, Kahn Communications tors' First Amendment rights.
Broadcasting May 2 1988
10