01-27-1992 Council Packet - Laserfiche WebLink

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FOLLOW-UP A Broker’s Holiday Wish List w ith the acquisition market once again beginning to heat up and prices steadying (CV, 11/18/91). cable broker Jim Boyle of Connecticut-based Frank Boyle &Co. has calculated the hypothetical value of the Top 10" clusters of cable systems in the nation. In deference to the holiday season, he calls tliem his "billion-dollar toys." Ranking first on Boyle's list is Cablevi- sion Systems Corp.’s Long Island cluster, which he values at $1.4 billion ^.490/sub). Also above the $1 billion mark Is Time Warner Cable’s Orlando cluster, valued by Boyle at $1.04 billion ^,260/sub). Third and fourth place also go to Time Warner clusters: Manhattan (with Paragon) at $835 million and Brook lyn/Queens at $820 million ($1,990 and ^410/sub. respectively). Rounding out the topfive is Vboom’s Pliget Sound gro"p at $710 million ^1.870/sub). ‘The second ^ on Boyle’s holiday wish list are: Cox San Diego ($640 mil- lion/$l,970 per sub). Times Mirror Phoenix ($590 million/$2,000 per sub), KBLCOM San Antonio ($.^20 million/ $2,210 per sub), Hauser Maryland/Vlr pinia ($500 million/$2,3«0 [>er sub) and Maclean Hunter New Jersey ($500 mil lion/$2,220 per sub). If nothing else, Boyle’s list demon strates that only a company wtli Uie finan cial strength of a major telco can hope to penetrate the upper echelons of tlie cable business. • Tern Kener I Coble In 60.6% of Homesl M EW YORK — Cable penetration rose to 60.6 percent in November,II a 2.7 percent climb from November 1990, when penetration stood at 59 percent, according to figures from Nielsen Media Research. Cable penetration increased by 0J percentage points from July’s 60.3 percent even though the numbCT of cable homes estimated by Nielsen declined from 56.07 million to 55.79 million. That was because Nielsen revised its estimate of the total TV household universe downward in September from 93.1 million to 92.1 million. The rise in c^le penetration in November from the previous ratings in July came after a period of stagnation from May to July, when the number of cable homes remained flat at 56.1 million. ‘The numbers are gleaned from NMR’s Nielsen Station Index which is the company’s local marketing ratings service. 'The latest figures are more evideiKe that the increase in cable pene tration hu slow^ markedly. From November 1989 to November 1990. penetration had increased by 3.3'percent (See chart page 26.) ■ FCC Revises Rules For Political Ads W By JEANNINE AVERSA ASHINGTON — The Fedcr- ^ A - - si Communications Commis sion last Thursday revised its rules pertaining to political advertising on cable systems and broadcast sta tions. The rules don’t apply to ca ble networks. Cable systems that sell political advertising will continue to be re quired to offer candidates their lowest unit charge and must afford equal opportunities to each candi date’s opponents. Revised r jles include requiring both audio and visual sponsorship identification for 'TV ads and re quiring outlets to disclose to can didates all classes of time, discount rates and privileges afforded to commercial advertisers. The FCC also came out with a ruling that pre-empts state action on disputes involving the lowest unit charge. The FCC also ruled that a “rea sonable access” provision, which requires a station to make some air time available to federal carxltdates, does not apply to cable systems. The Notional Cable Television Association raised no objections to the FCCs actions. Because no complaint has ever been filed against a cable network, there's no body of FCC rules on political ads that applies to cable networks, said FCC genera] coun sel Robert IfettiL The policy on ca ble networks is expected to evolve on a case-by-case basis, he said. Pettit said he expects the numbo' ’ of political advertising complaints .lodged agains' cable to increase during the I99i' elections as more candidates turn ‘o this medium to distribute their n essages. ■ > ■