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Television Digest with Consumer Electronics, August 30, 1999

Competing technologies "continue to steer viewers away from television," causing reduction in rate of TV advertising growth, BIA Cos. said in 1999 State of the Television Industry Report, released Aug. 25. BIA said audience share of Big 3 TV networks in top 50 markets dropped to 42% last year from 64% in 1988, while share of independents (including Fox and emerging networks) has grown to nearly 20% from 16% in same time frame. Adding to drop in TV viewing has been increased use of computers and Internet, BIA said. "With the continued expansion of more cable channels, direct satellite and wireless offerings, we expect network viewing to erode in the next decade with corresponding decreases in revenue shares," BIA Pres. Thomas Buono said. Report said that top 10 group station owners had $6.73 billion in 1998 revenues (38.7% of TV total), while stations owned by Big 4 networks accounted for 27% of total industry revenues. BIA predicted that 1998 TV revenue ($19.7 billion) growth of 4.7% would decline to 3.9% in 1999.

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DTV program sponsorships on network TV continue to pick up. Samsung announced Aug. 24 that it will back HDTV broadcasts of upcoming fall "Movie of the Week" on CBS and that it will underwrite cost of converting movies to digital. "What we need is programming to move DTV along," Samsung Senior Mgr. Digital Products Mark Knox said. "I can't say we've thrown a ton of shekels at this, but it is significant." Samsung also rolled out 2nd-generation DTV line that replaces current 55" HDTV rear projector. It includes $2,000 set-top that mates with any of 5 DTV-ready projection monitors -- including 40" SDTV widescreen LCD rear projector at $3,499. New integrated HDTV sets include 65" at $9,999 and 55" at $6,999. As part of deal with network, Samsung will receive ad spots on various CBS-owned media. Last spring, CBS and Mitsubishi announced that manufacturer would spend estimated $10 million to convert CBS prime-time programming to HDTV format.

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AT&T lobbyist David Krone was named NCTA exec. vp, No. 2 spot, Aug. 23, as expected. Krone, 32, starts Oct. 1. He replaces June Travis, who returned from retirement recently to help with transition of new Pres.-CEO Robert Sachs. Krone graduated from Pa. State U. in 1989, working with campaign consulting firm Southern Strategies before being hired by TCI in 1992 as state and local govt. affairs specialist. He moved to TCI's Washington office in 1994 and became its head in 1997, joining AT&T Broadband after TCI was acquired earlier this year. AT&T Broadband Pres. Leo Hindery addressed Krone's youth by calling him "one of the next generation of leaders in our industry." Sachs, who replaced Decker Anstrom, now pres.-CEO of Weather Channel, is 50. Sachs is overhauling top structure of NCTA, having recently promoted Daniel Brenner and Pamela Turner to senior vps of govt. relations and law & regulatory policy, respectively.

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Oral arguments will be heard Oct. 6 on AT&T's appeal of Portland, Ore., cable open access decision before 9th U.S. Appeals Court, San Francisco. Company seeks reversal of U.S. Dist. Court, Portland, affirmation of municipal right to impose open access conditions on franchise transfer (TVD June 7 p4). AT&T has said it expects decision by end of year. Hearing will be held in Seattle as one of 6 cases before court that day. First case will start at 9 a.m. Each side will have 20 min. to argue. AT&T and its supporters, including FCC (TVD Aug 23 p4), have filed opening comments. Replies of Portland and Multnomah County, Ore., are due Sept. 7, their supporters' Sept. 14, same day as AT&T's optional response.

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Senate Commerce Committee is considering Sept. 9 as date for confirmation hearing for Gregory Rohde, telecom counsel to panel member Dorgan (D-N.D.), to be NTIA dir., replacing Larry Irving. Committee spokeswoman said schedule hasn't yet been set officially. Senate returns Sept. 8 from summer recess. Quick confirmation is seen for Rohde, key player in representing rural interests in telecom policy. He has support of committee Democrats and Republicans.

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Culminating weeks of speculation, ABC Entertainment Pres. Jamie Tarses resigned Aug. 26, just 2 days after ABC Group Chmn. Robert Iger denied published reports that she was about to be fired. Tarses said she was resigning because of "sweeping changes in the entertainment industry" -- such as combining Disney and ABC programming arms, putting 2 co-chmn. over her. "I feel that the time is right to move on," she said. "ABC is well positioned to turn the corner next year." Network paid her for 2 years left on her contract and position won't be filled, ABC official said.

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Latest Nielsen estimate is that there now are 100.8 million U.S. TV households. New figure becomes effective Sept. 5 and represents increase of 1.4 million homes from year ago. Nielsen said its 46 electronically metered markets monitor viewing for 64% of those households, or 64.7 million homes. Starting Sept. 20, each TV rating point in metered markets will account for 647,000 homes. Nielsen said it will add meters in Louisville (48th TV market) in Oct. and Buffalo (44th) next April. Nielsen also uses diaries in metered homes to collect demographic data.