Cable Programming: NBC and AT&T Broadband & Internet Services Enter into Long-Term Agreement on the Analog and Digital Future of NBC Program Services - Company Business and Marketing

Cambridge Telcom Report, June 14, 1999

NBC and AT&T Broadband & Internet Services (AT&T BIS) Wednesday announced a wide-ranging and long-term partnership spanning broadcast, cable, and digital carriage of NBC and the NBC digital services. The agreement provides for long-term carriage on AT&T BIS cable systems of NBC's cable services CNBC and MSNBC, as well as a commitment by AT&T BIS to carry NBC's Olympics programming package on CNBC and MSNBC.

As part of the new agreement, NBC granted AT&T BIS retransmission consent for the 13 NBC owned and operated stations through December 31, 2008 and reached terms with AT&T BIS relating to digital carriage of NBC's digital spectrum. AT&T BIS will provide NBC's digital offerings, including the network's high definition television programming, to AT&T BIS cable customers in systems rebuilt to 750 MHz or higher.

The increased MSNBC distribution within the AT&T BIS universe, coupled with launch commitments by other operators, extends MSNBC's distribution to over 66 million homes within the next three years. The agreement also provides for distribution of NBC's digital spectrum to AT&T BIS customers. Additionally, the parties have agreed to work together to provide that NBC's high resolution programming will be displayed on traditional TV sets as well as on high definition TV sets.

"We are grateful for the friendships and the relationship we have with NBC, which have honored us for years," said Leo J. Hindery, Jr., President and Chief Executive Officer of AT&T BIS.

"This new agreement, which will bring great value and benefit to our customers well into the next decade, demonstrates that the cable industry and broadcasters can amicably reach agreement on important matters such as high definition television, retransmission consent and the carriage of existing and new digital programming services. We are especially pleased with the upcoming Olympics carriage, which will delight our customers."

"We are pleased that we have reached a long-term deal for all of NBC's programming properties, including the next decade of Olympic Games, to be distributed to AT&T's millions of customers," said David Zaslav, President Cable Distribution, NBC. "CNBC and MSNBC's share of the news audience has grown from 10 percent in 1997 to more than 35 percent of the news audience today, while delivering the youngest and most upscale audience. We look forward to continuing our growth with AT&T Broadband & Internet Services and ensuring that viewers have the best in cable, and Olympic programming from NBC."

Tom Rogers, President of NBC Cable and Executive Vice President, NBC said, "This agreement demonstrates how AT&T's leadership can be a catalyst for driving constructive relationships between the broadcast and cable industries. This assures NBC's growth across AT&T's BIS analog and digital offerings. We are very gratified by this vote of confidence from the country's leading cable and telecommunications company, not only in NBC's present offerings, but, more important, in our future digital offerings."

AT&T Broadband & Internet Services is one of the nation's leading providers of video and broadband services. Formerly known as Tele-Communications, Inc. (TCI), prior to the company's recent merger with AT&T, AT&T Broadband & Internet Services provides cable television entertainment and information programming services to more than 10 million customers across the country. The Company also provides a host of advanced services through its digital cable offerings and its high-speed cable Internet service TCI@Home, and is actively developing cable telephony services.

AT&T Broadband & Internet Services is a wholly owned subsidiary of AT&T Corp., the world's leader in telecommunications services and technology.

NBC, the leader among traditional media companies in Internet and new media businesses, holds equity stakes in Snap.com, CNET, Launch Media, Talk City, iVillage, Telescan and ValueVision International. NBC maintains NBC.com, the first TV network Web site to feature original programming, and operates NBC Interactive Neighborhood, a localized Internet community guide service customized for over 100 local NBC stations.

NBC also owns VideoSeeker (www.videoseeker.com), an on-demand Internet video service operated with InterVU Inc. With Microsoft, NBC owns and operates MSNBC, a 24-hour cable news network and Internet news service at www.msnbc.com. Also, together with Microsoft and Dow Jones, NBC operates CNBC/Dow Jones Business Video, offering video- and audio-based financial news and information to financial professionals and institutions. Other new media innovations from NBC include interactive television initiatives with Intel for NBC Intercast, Microsoft WebTV for Windows and WebTV Plus, Wink-enhanced programming with Wink Communications, electronic program guides with Gemstar and on-demand video services with Intertainer.