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Court scrambles adult-film outlook. (scrambling requirements for adult programming)

Multichannel News, March, 1997 by Umstead, R. Thomas

WASHINGTON - The cable industry - for now, anyway - was unharmed by the Supreme Court's procedural decision last week on the full-scrambling requirement of adult programming offered by Playboy Entertainment Group Inc. and Spice Entertainment Cos. But the situation could change over the next month, as various legal scenarios play out.

Some operators, however, are already making plans to reduce programming hours for Playboy and Spice networks to "safe-harbor" hours, despite the potential loss of pay-per-view revenue. The high court, in a unanimous decision with no accompanying opinion, affirmed a lower court's decision to deny a preliminary injunction of Section 505 of the Telecommunications Act of 1996 sought by Playboy and Spice. Under Section 505,...

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