Nab Convention To Set Records In Las Vegas

Television Digest with Consumer Electronics, April 3, 2000

Year ago, NAB Pres. Edward Fritts questioned whether Assn.'s annual convention in Las Vegas was getting too big to provide "quality experience" for its members (TVD April 12 p2). Even so, next week's convention (April 10-13) will be even larger than 105,000 who attended last year, with preregistration up 10%. But none of those extra people will be coming from FCC -- which is sending 4 commissioners and only 17 staffers (down 10 from year ago) -- or Congress, with only 4 members and 10 staffers.

Major issue on agenda and in hotel corridors will be low- power FM for radio delegates. For TV, issues will be digital standards and what stations will do with extra spectrum space provided by DTV. Major issue not on any agenda will be deteriorating relationships between Big 4 TV networks and their affiliates -- NBC in particular. NBC Affiliates' Chmn. Alan Frank, pres. of Post-Newsweek stations, has called meeting Sun. in Las Vegas on stations' acrimony with network -- without participation of NBC executives. Unlike ABC, CBS and Fox, NBC has no working agreement with its affiliates and network created bigger rift with stations with its same-week repeats of quiz show Twenty One on Pax TV (TVD March 20 p2). Executives of affiliates of other networks aren't meeting next week in Las Vegas, except for engineers from ABC affiliates.

"Local, over-the-air broadcasting is going to continue to be the key to success" for TV stations, Fritts told us. "If we do not remain local, we're going to lose our franchise to competitors." In that respect, NAB will release new study Tues. showing public service time donated by stations over 12-month period in 1998-1999 was "substantially higher" than $6.89 billion reported in similar study 2 years ago. Of 3 consortia formed by stations to devise ways to use their digital spectrum for such things as datacasting (move that has caused CBS to express concern), Fritts said their plans are "very tentative." Extensive live datacasting could leave stations without enough spectrum at times to transmit in HDTV, he said, and uses other than high definition were likely to be on delayed and "flexible basis."

As she did last year, FCC Comr. Tristani has declined NAB's invitation to participate in convention, but other 4 commissioners are going to Las Vegas. Chmn. Kennard will speak at Tues. breakfast, and Comrs. Ness, Powell and Furchtgott-Roth, along with NTIA Dir. Gregory Rohde, will participate on "Regulatory Dialog" panel that afternoon. Just as at recent Cellular Telecom Industry Assn. convention in New Orleans, FCC restricted number of staffers that could attend to no more than 3 from any one bureau. As result, Mass Media is sending Chief Roy Stewart, Deputy Chief Keith Larsen and Linda Blair, chief of Audio Services Div. That means Barbara Kreisman, chief of Video Services Div., won't be attending for first time in many years. Also, there will be nobody from Gen. Counsel's Office or Cable Bureau, first time in memory that's happened. Commissioners all are sending legal assistants (including Tristani), with 2 going from Ness's office. Coming from Hill, in addition to staffers, Republicans all: Sen. Burns (Mont.) and Reps. Rogers (Ky.), Stearns (Fla.), Fossella (N.Y.).

Viacom Chmn. Sumner Redstone will keynote formal opening session Mon., with MultiMedia World keynote by Adobe Systems Chmn. John Warnock and radio keynote by consultant Herb Cohen. Lowell (Bud) Paxson, chmn. of Pax TV, will keynote Bcst. Education Assn. convention just ahead of NAB. Ironically, NBC's Sat. Night Live will be inducted into TV Hall of Fame -- ironic because NBC withdrew from NAB membership month ago in dispute over regulatory policy. Talk-show host Tom Joyner will be added to Radio Hall of Fame.

NAB entered new fiscal year April 1, for which it's projecting revenue of $55.9 million, expenses of $41 million -- up from $53.2 million and $38.7 million, respectively. Of income, $36.77 million will come from next week's convention, compared with $34.96 million last year, which produced net of $24.9 million (8.6% over budget). Convention is expected to provide 66% of NAB's total income for coming year, with next largest income from TV dues at $5.5 million (10%), radio dues $4.07 million (7%), radio show $2.7 million (5%). TV dues' dollars will drop at least $400,000 following withdrawal of NBC network and owned stations. TV dues fell $218,000 under budget for year ended March 31 caused by Fox withdrawal last year.

Major item on expense side for new year is $12.4 million for "general and administrative," which includes president's office and board expenses, followed by $10.4 million expected to be spent on convention, which still leaves profit of $26.3 million from annual show. Govt. relations expenses this year are budgeted at $3.8 million, up $497,000, with legal expenses of $1.6 million, up $150,000. Corporate communications received $104,000 boost to $1.34 million. Budget, approved by board in Jan., sets aside $3 million "board contingency" fund, increase of $2 million. Included in set-aside are funds for existing and possible court appeals on several issues such as low-power FM, digital must- carry, Satellite Home Viewer Improvement Act, local-into-local TV service.