03-23-1992 Council Packet - Laserfiche WebLink

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imoH I'rogrammers re r 3 iz ny KIM MITCIIKI.I. nislraic*! cnbic pfogrnniiiicfs k liuit week lo<*k lime mil lo as- I sc,ss llie poicniial damage of S 12, llic cable re rcgulalion bill lliey feel will sliflc ll»e conlimi- ing ileveinpmeni of original pro- graniniing, srpiasli cfforls lo slart op new nclworks and Ilircalen llie cxislencc of newer and smaller nclworks siniggling for tlislribu- lion. If rale rrgnlalion Ivcomcs law, program rlevelopmeni and nel- work slarliip cosis will l»c diffi- coll lo pass on lo opcralors. As a resijll, programmers say, llie qnnnlily and «|oalily <»f cable pro- giainmiiig will suffer, while broadcasters improve Ibeir pro gramming with a new. second revenue slreain. While mosi programmers said il is slill loo early lo comprehemi rmc points of the bill and ils minicrons aincmlmenls. as well as lo «lclormiiie llieir long lenn effects, they agreed ibal iimsl-carry. rciransmissimi cirnsent rides ami rinancial interest limitations will also impact their business llie bill insinicis the 1-c.leral roni- iiinnicaiions Conmiission lo set <ip roles dial would prevent r»|>craloi.s from rctpiifing pr«>grammers lo give a fi nancial interest in their service as a euiulilion for carriage. Umler the retransmission roles, bmadcaslers every three years wonli! Ik* given an o|>lion of eluxising cither niniidalnry carriage or negotiating with either cable operator for carriage, “Prom a programmer’s standpoint. •I •*.»»» 1 / '> V-/ / 'r anything lhal dcnecis money from a cable syslem is oncrons.” said l.loyd Werner, sndor vice president of sales and iiiarkeimg for (Ironp W S.ilellile Coinmnnicalions. wliitli mnikeis and disiribnics llie Nashville Netwoik and roimlry Music Television ' ll is b;id for smaller networks such as I'oiinirv Music Television ami even worse bn the networks wc baveiTl even an nonneed " Programmers oslimaled ili.il it can cost from SlOO million to S2M> nnlli.'ii to ianncli a i»ew ad snpjxuled ni*iu«>rk (de|H-ndmg on programming t <>* is) and III.,I it lakes nearly four years beloie the nelw'ork would run in the black Wilbmil ibe support of operator dol lars. II is nearly an imixissible feat 5 /2 WATCH: Pro'^jrarTi', like ihis one ^rorn ten MoTi'or Ck'O'^nel ro* I'coch consumcri if 5 1 2 passes, smaller networks fear. If operators arc forced lo pay »'• Iransmissiim fees and cap rales. ili*’se siip|sirling dollars will disap[>ear from llte cable scene, programiners lie' pMrgr.ammcrs' rmslraiions .tic U iiig fmlber fueled by what they perceive ;e. Iheir m.ibilily lo conliol the events that ilirnsi tin- cable industry to tin- precipice ol le regnlalion W'lnl*- im i.m- wauled 1 > say II lor llie re< *nd. many .igreed privately ibal il is pii m.odv tin- issues ol |>rice/v.dne per ceplion and ( le.loiner service - issues Mver uliicli llicy as pn ciamiiiers have iMHonlfol — ibal will lesiill ill rc reg nl.itioii Wliellier lln» ixTerpiion will widen llie ever growing 'it ln'lween opr'ra ."vf'.p.saM/,/, rAcr: <// CONTINUED pRO^Il'PAQBSl'^ - .. oi-, ion and piDgrvnui^ In the cable Indualry romaini to be aetaniirtca^ "Eiiher It will to i, mijoc idbacli fgnw reUtiooahlp wittv«Jefatori or wc’U all JoinVruii and work i< ouC* Mid the of ♦milato rty taiions at ono Q^t^prk^^Ca roinj Uf b© Interesting to Sto how(wlw,di lidea r©>ct.**.' “ If (bey (opcrato^l wilUng to'r^nsldef theU inMRM evea|light|y. 1(^9^ things oonaildorab|y4Ml(J4in^ otherprogianttngff'.. ■i.i'a’ - i ■ > ■ *y' vjSUU. bri3[9ttq^tor»; wki pfwy 0/ ‘They wan< cablodbb^ themouibf asituadoo^y are lit bdpauio, of liorrendoun buaiheas docUlooa lhay have nladc,'' said John varino. president and CEO of Prime Ticket Network.•‘'WeU.pO ono told them to go Qol and make © deal with the NFL that lost moricy.i No one told Uifcni to go out and make a deal with the OlyirtpKs.thal lost money. Thay'yc made insipid btuiness decisions and ndls^lhojr want the cable intjuslry to b^ them out. You can’t^havc it^boih ways." -1 ., ‘ "i'' , Must-carry is dn« IsstKi that cooocmed e^ectiiivcs si newer and, smaller networks. If operators have lo carry - very broadcast stnlion in a mnrkc(plf|ce, many Wopy lh.1t smaller netwv’rk.s will 1)C di-rplKerl and new networks will bo Unable lo obtain disiribulion. e.Ti ...............................-................ It would do a gf^ dlsservjcc 19 tto oontumer who Is looking Tm a choice ’* said Tbm Mohman,.vkjo president of a/niiate relations for !n.-pinid«'x5ai<IUre Network, Wtlch is afnUatcd wito ^e 750 cable •yatems reaching aboy* ^ million homes. ‘ ‘ "It's going to burden the cable operetors more than they are al ready." said Barbara Bellafiore Sandch,'executive vice president oP Tlw Monitor Channel Sanden rKJted that with channel space already at a premium, hiles calling for must-carry and retransmission fees would squeeze operators so light that they would be unable to ac commodate the distribution needs of new networks. ' Satellite delivered religious networks as well as foreign-language networks oouid to Ip >»P«dy as a result of those rules. jKOgrsmmen fear. ‘This could result In VISN and other low-cost basic cable net works being cut from an operator's lineup," said Bill Airy, president of VISN Network..‘‘m,’ Airy bad an additional concern U operetors are forced to xet i^de a xi peirentage of channel space for carriage of multidcnominationaJ religious networks such as VISN may leg; ,slated out of existence In favor of networks like those owned by sin gle <lcnomination Trinity Broadcasting Network, die naUon ’s single hugest broadcast llcen.se holder, according to Airy. , < , t i ••(>m principal concern is that the federal government is consid- rnnr a.lnr'mK a law that will inenrcl give ptefnrntiil tm.mrni to ..ne v>,. e of fchgious esprrvsion." I.r snid ’'Hint limus fn*e rtpie.s- M 1 n i l l»’ys f(*r ll,c sepirai! 'H of chimb an i st.oc H