NOTEBOOK

Television Digest with Consumer Electronics, Sept 6, 1999

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Personal attack and political editorial rules, left over from FCC's repealed fairness doctrine, once again are before U.S. Appeals Court, D.C. RTNDA asked en banc court Sept. 3 to reconsider 3-judge panel decision remanding 20-year-old case to FCC with instructions to act "expeditiously" in trying once again to justify continuation of restrictions on broadcasters. In remanding case, panel said Comrs. Tristani and Ness, who favored keeping rules, had failed to adequately justify their potential impact on First Amendment. Short of en banc rehearing, RTNDA asked Appeals Court to set date certain by which time FCC must act on remand.

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FCC Mass Media Bureau told WPGH-TV Pittsburgh it's liable for $15,000 fine for exceeding amount of commercial time permitted in children's programming. In renewal application last April, station said it exceeded maximum on 16 occasions, including 14 program-length commercials.

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FCC Chmn. Kennard defended agency's handling of SBC-Ameritech merger, telling House Commerce Committee Chmn. Bliley (R-Va.) there has been "unprecedented level of public scrutiny and comment" on proceeding. Bliley wrote Kennard Aug. 19 suggesting that FCC consideration of merger conditions wasn't sufficiently "transparent and open." Kennard said Commission and FCC staff had held many meetings with proponents and opponents of merger, as well as public discussions, and had taken written comments as well. Kennard said none of commissioners has prejudged issue. He also asked that FCC be able to delay answering some of Bliley's queries because staff is working on decision.

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Canal Plus is on market, as 49%-owner Vivendi plans to sell 9% of French cable operator, largest in Europe, and several U.S. companies are said to be interested. Microsoft, which already owns stakes in U.K. cable companies Telewest and NTL, is said to be favorite candidate of Vivendi for Canal Plus. Other candidates reportedly are America Online or Time Warner. Meanwhile, News Corp. is said to be considering purchase of Deutsche Telekom's cable clusters. News Corp.'s BSkyB provides multichannel video to U.K., and Deutsche Telekom is considering entering U.K. market with purchase of Telewest.

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CNN must stand trial in suit brought by Mont. rancher for network's airing of law enforcement raid footage. Ninth U.S. Appeals Court, San Francisco, ordered trial.

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Warner Bros. (WB), which has been without deal to distribute its movies and programs to German TV, signed agreement with Kinowelt Medien AG. Financial terms weren't announced, but Wall St. Journal said deal was for about $300 million over 3 years. Deal gives Kinowelt over-air TV rights to about 70 movies produced in last 3 years and to all new WB TV series, made-for-TV movies, miniseries.

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FCC was hoping to place official notice on new ownership rules in Federal Register by end of last week, Mass Media Bureau Chief Roy Stewart said, but has been working on "transitional" questions such as how to handle multiple station acquisition requests filed on same day. Stewart, speaking at NAB Radio Show in Orlando, said that in some cases only one of requests in same market might be approved because at least 8 independent "voices" must remain after deals are completed. That has led some to predict "land rush" by station buyers to be first to file on day that rules take effect, which will be 60 days after Federal Register publication. Stewart said he hopes Commission will begin rulemaking soon on transitional rules to determine which of buyers' petitions to grant. Rulemaking would determine whether decision would be strictly first-come first-served, meaning minutes could make difference in multimillion-dollar deal, or by auction, lottery or even "fist fight." Bureau has been working with FCC 8th floor to get agreement on rulemaking, he told us, which probably would include "a really short comment... We need to work through this as quickly as we can." Stewart wouldn't say that Federal Register notice had been held up pending agreement on rulemaking, but did say that "pressure will begin to build to put it in the Register." Regardless, he said he expects rulemaking to be issued "in a reasonable time." Rulemaking also must deal with other transitional issues, including how to handle LMA entered into before ownership rules' effective date that affects number of independently owned voices in market.