NOTEBOOK

Television Digest with Consumer Electronics, Feb 22, 1999

If NTIA Dir. Larry Irving leaves before end of President Clinton's term, one potential candidate has lined up some high- powered Hill support to replace him. Situation is touchy one for Irving, who isn't openly looking for new job but has said he probably won't stay until end of Administration in 2001.

Greg Rohde, telecom counsel to Sen. Dorgan (D-N.D.), is being backed to be NTIA head by 15 senators, including Majority Leader Lott (R- Miss.) and Democratic Leader Daschle (D-S.D.). Senators diplomatically wrote to Clinton Feb. 18 that Administration "is considering a possible successor" for Irving and that if he leaves, Rohde has "broad bipartisan support in the Congress and if nominated, we are confident that he would be swiftly confirmed, ensuring that there will not be a gap of service at this important position." Rohde is key Hill staffer on telecom issues, particularly for his role on "Farm Team" of staffers from rural states. Those signing letter included Dorgan, Senate Commerce Committee Chmn. McCain (R-Ariz.), Senate Communications Subcommittee Chmn. Burns (R-Mont.), Senior Commerce Committee Democrat Hollings (S.C.), Commerce Committee members Stevens (R- Alaska), Snowe (R-Me.), Brownback (R-Kan.), Ashcroft (R-Mo.), Breaux (D-La.), Cleland (D-Ga.). Also on board are Sens. Kerrey (D-Neb.) and Johnson (D-S.D.). NAB will present its Distinguished Service Award posthumously April 19 to family of James Cox during NAB convention in Las Vegas. Cox, who served 3 terms as Ohio governor and was Democratic candidate for President in 1920, formed newspaper firm more than 100 years ago. Radio (WHIO[AM] Dayton) was added in 1934, WSB-TV Atlanta in 1948 as South's first TV station, with cable in late 1950s by what is now Cox Enterprises. Company has remained under control of Cox family, and Award will be accepted by Cox Chmn.-CEO James Kennedy, grandson of James Cox. Senate Commerce Committee member Bryan (D-Nev.) said Feb. 18 he won't run for 3rd term next year. He sponsored major Web privacy legislation last year that was enacted as part of budget agreement, also was active for years on behalf of broadcasters to repeal bans on commercials for gambling. Bryan is former Nev. gov. and attorney gen. CEMA will sponsor DTV conference March 2 at Tysons Corner, Va., with co-sponsors MSTV, NAB, NCTA, SBCA. CEMA said focus, on building DTV business, is first to involve all 5 associations. Meeting is open and runs all day at Ritz-Carlton -- 703-907-7605. News Corp. gave up on effort to buy 80% of pay-TV venture in Italy, apparently as result of govt. decision to prevent it from carrying soccer games on pay-per-view basis. Channel, called Stream SpA, is owned by Telecom Italia. News Corp. had bid $1.2 billion for Italian soccer broadcast rights. Meanwhile, London Sunday Telegraph said there's opposition to another News Corp. international TV venture, this time in Russia. Company was negotiating to buy up to 20% of ORT, most popular Russian TV channel, but key govt. officials have voiced objections to any foreigner owning part of it. Cable rate increases are 1/3 lower in parts of Detroit area where there's competition, according to survey in Feb. 16 Detroit News. It said increases averaged 12% in 66 communities where Ameritech New Media hasn't overbuilt, 8% in 34 where it has. Meanwhile, Ameritech New Media started cable TV service in Woodhaven, Mich., Detroit suburb with 5,300 households. Incumbent is TCI. Barry Baker, who left Sinclair Bcst. Group about 2 weeks ago as chmn.-CEO, has been named pres.-COO of USA Networks and will be elected a dir. In new post, he will oversee Home Shopping Network and USA Studios, as well as USA Networks, reporting to Chmn.-CEO Barry Diller. Baker had joined Sinclair 2 years ago when it acquired River City Bcstg. (founded by Baker) for $1.2 billion. CWA Feb. 16 endorsed Vice President Gore for president in 2000, nearly year before first primaries or caucuses. CWA Pres. Morton Bahr said Gore's work on high-tech issues and support among membership contributed to early backing. "No other leader in public life can match Al Gore's understanding of the changes taking place in the information age economy," Bahr said. Union said polling of its 630,000 telecom, broadcast and health care members showed "overwhelming" support for Gore, even before other Democrats begin actively campaigning. "Building Bridges for Our Future," designed to increase opportunities for minorities in advertising, is subject of Feb. 22 lunch at Waldorf-Astoria Hotel, N.Y., sponsored by American Ad Federation Foundation. Speakers include Vice President Gore, FCC Chmn. Kennard, FTC Comr. Thompson, Reps. Menendez (D-N.J.) and Kilpatrick (D-Mich.), Robert Wehling of Procter & Gamble, Henry Cisneros of Univision, and Don Coleman of ad agency bearing his name. Paul Allen's Charter Communications will acquire 460,000 additional subscribers through purchase of MSOs InterLink Communications and Rifkin Acquisition Partners (RAP), 2 Rifkin & Assoc. (R&A) partnerships, Charter said Feb. 16. All parties are privately held and terms weren't disclosed. However, Allen's recent purchases involving per-subscriber fees at $3,400 per share would value deal at $1.6 billion, and we're told acquisitions fall in that general range. InterLink has more than 270,000 subscribers, including Miami Beach (43,000), Va. and W.Va. (43,000), Ill. and Ind. (45,000), N.M. (22,000). RAP has more than 190,000 in suburban Atlanta (60,000), central Tenn. (108,000), Ill. (23,000). Charter CEO Jerald Kent said deals add to its southeast U.S. clusters acquired in InterMedia. Tenn. operations will triple to nearly 400,000 subscribers, Kent said, with Ga. presence doubling to 250,000. Parties said they expect acquisitions to close in 3rd quarter. Charter is negotiating separately with R&A Management, which manages InterLink and RAP systems, to have it continue operating systems in noncore Charter markets. After sales, R&A will own and operate systems with 100,000 subscribers. Charter source said MSO was likely to announce further deals soon. This will be busy week for Satellite Home Viewer Act with 3 hearings on tap Feb. 23, 24 and 25, with some witnesses appearing at more than one of sessions. First will be Senate Commerce Committee, Feb. 23, 9:30 a.m., Rm. 253, Russell Bldg. Witnesses: Eddy Hartenstein, pres., DirecTV ; Andrew Fisher, exec. vp-TV affiliates, Cox Bcstg.; Gene Kimmelman, co-dir., Washington office of Consumers Union. House Telecom Subcommittee has Feb. 24 hearing, 2 p.m., Rm. 2123, Rayburn Bldg. Witnesses will include Fisher and Kimmelman as well as Sophia Collier, chmn., Northpoint Technology; Al Devaney, pres., Newsweb Bcstg.; Jack Perry, pres., Decisionmark; Deborah Lathen, chief, FCC Cable Services Bureau; Charles Hewitt, pres., Satellite Bcst. & Communications Assn. (SBCA); David Moskowitz, senior vp, EchoStar; John Hutchinson, exec. vp, Local TV on Satellite TV. House Intellectual Property Subcommittee will hold hearing Feb. 25 on related issues, 10 a.m., Rm. 2237, Rayburn Bldg. Witness list wasn't available, but is expected to include numerous representatives of satellite industry, copyright holders, others. Subcommittee Chmn. Coble (R-N.C.) is expected to introduce bill similar to one already offered by Senate Judiciary Committee Chmn. Hatch (R-Utah) that would reduce copyright royalty rates and allow local-to-local broadcasting. It's expected to add requirement that consumers be told when they buy satellite dish what rules are on distant signals, language picked up from bill introduced in 104th Congress by then-Subcommittee Chmn. Moorhead (R-Cal.). Judiciary Committee bills deal with copyright issues, such as royalty rates and local-to-local authority, while Commerce Committee relates to must-carry, white areas, related issues. Disney said it's constructing new building on its Burbank, Cal., lot for some 240 ABC jobs being shifted to Cal. from N.Y.C. ABC hq will remain in N.Y., along with most of its 4,500 employees based there. Pres.-CEO Robert Iger, along with several other network executives, will have offices on both coasts, ABC said. Planned move was announced last June but became news this week when 211 N.Y. employees (other 39 positions currently are vacant) were told that their jobs are being shifted to West Coast. Veronis, Suhler & Assoc. will form 3rd equity buyout fund aimed at midlevel media and communications companies, it said. VS&A Communications Partners III has $1 billion equity and is targeting about 15 companies valued at $100-$500 million. Fund will carry over managers from Partners II, which closed in 1995 and posted annual return of 45%, VS&A said. FCC will close temporary filing facility at 1919 M St. NW Feb. 26. All paper filings will have to be delivered to agency's new Portals hq starting March 1.