Cable Fear D.C. Changes

Television Digest with Consumer Electronics, April 24, 2000

Fox has sent warning notices to several TV affiliates that haven't kept their assessments current for inventory buyback approved by stations last spring. Affiliates' Chmn. Cullie Tarleton, Bahakel Communications, said he hasn't heard of any affiliations that have been terminated because of nonpayment but that may be in works. Most small market affiliates say it's bad deal for them and they are unable to recoup amount paid network through local sale of spots. Payments were due to Fox in Nov. and Feb. and we're told many affiliates didn't make Feb. payment.

Colin Powell will keynote NAB Radio Show in San Francisco Sept. 20, Assn. said. Former chmn. of Joint Chiefs of Staff and father of FCC Comr. Powell, he is chmn. of America's Promise/Alliance for Youth.

Newly named Fox Cable Networks Pres. Jeff Shell plans to push carriage of News Corp.'s 2 newest cable channels, Health Network and yet-to-launch National Geographic Channel, and promote sweeping carriage deals encompassing all of Fox's cable properties. Shell said he aims to build Health Network and National Geographic Channel into widely distributed networks through mix of analog and digital cable and DBS carriage in next 5-6 years. He also will seek greater digital cable carriage of such specialty networks as Fox Sports World, Fox Sports World Espanol, Fox Movie Channel, Golf Channel, Outdoor Life and Speedvision. "It's going to be less and less in coming years about selling channels for a specific price and more and more about selling packages for broadband," he said.

FCC Mass Media Bureau is considering allowing WTKR-TV Norfolk, Va., to use DTV Ch. 40, instead of Ch. 58. Station notes that new channel would be within "core" TV channels after transition. Comments are due June 12, replies June 27.

Two class action suits were filed against Terayon Communications and several of its executives for alleged violations of federal securities laws. In one suit, filed in U.S. Dist. Court, L.A., by Bernstein, Liebhard & Lifshitz, shareholders claimed Terayon had issued "materially false and misleading information" about CableLabs' certification of company's cable modem technology, financial condition and operations, artificially pumping up stock price until truth was disclosed. Suit seeks to recover damages on behalf of all those who purchased Terayon shares between Feb. 2 and April 11. Terayon CEO Zaki Rakib said charges are "completely without merit" and promised to "mount a vigorous defense against the allegations" and "remain focused on executing our strategy to grow in the broadband market."

BMI and TV Music Licensing Committee are "very, very close" to new 3-year contract, Jack Zwaska, exec. dir. of Committee, told us. "We literally are crossing the T's and dotting the I's right now," he said. Old BMI agreement expired year ago. Committee has filed suit against ASCAP in U.S. Dist. Court, N.Y., and case is expected to go to trial in late summer before Judge Michael Dollinger, who has handled previous music litigation cases. Broadcasters are seeking reduced blanket fees (while ASCAP wants increase) and expanded use of per-program licenses. While court case is pending, stations are paying $98.1 million per year in blanket fees to ASCAP. About 200 TV stations now use ASCAP per- program licenses at cost of about 50% of blanket fee, Zwaska said. Music agreement with SESAC expires at end of this year.