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NW aOISlaOXT <br />i33ais ^vn lih „woo 31QVD vxiw 3>vn <br />SllVM h3dlSN3r <br />T6/^?/VO I bfliliiOOCO MD <br />INSIDE <br />TVGukto <br />Ejfw Moiitiiljr <br />Firm pitdud caMi.’ <br />guide to operators . <br />atNCTA^w/Z <br />FNN:An <br />Bttsorr <br />Auction set as <br />judge, FTC change <br />ruiesoftkegame/4 <br />la Gives <br />Encore Boost <br />MSOwUl offer <br />new service as <br />negative option / A <br />• <br />Jones Returns <br />IMtoBystenis <br />Nets shifted as <br />partofJones-USA <br />settlement/Z <br />ngM Record ^ <br />Seen lor TVKO <br />Foreman bout <br />seen yielding <br />heavyweight take / 20 <br />8AND ANOTHER THING <br />TECHNOLOGY_____ <br />INTERNATIONAL.-.___12 <br />OPERATIONS____ <br />ADVERTISING—. <br />PROGRAMMING- <br />ON SCREEN____ <br />MARKETING—.— <br />BUSINESS___—. <br />...20 <br />.22 <br />.24 <br />..28 <br />MARKETPLACE. <br />Gloomy Day in Court <br />UL’s Preferred Case: <br />Long, Winding Road <br />Just Gets Longer <br />piCKT Yeak after a tiny start-up firm sued <br />■■(he city of Los Angeles over its cable TV <br />franchising procedures, a U.S. Disfict Court <br />on April 17 threw out some of the city's fran ­ <br />chise requirements as unconstitutional, af ­ <br />firmed the city's right to demand franchise <br />fees and performance qualifications from ap ­ <br />plicants. and set the stage for the return of <br />the case to a U.S. appeals court <br />In a long-await^ written opinion in Pre­ <br />ferred Communications v. Los Angeles. <br />Judge Consuelo Marshall ruled that the <br />Constitution forbids Los Angeles from im­ <br />posing public access programming require­ <br />ments and limiting access to its cable mar- <br />S*t LA. on page 27 <br />Cable takes a beating <br />in separate court rulings <br />on taxes, franchise renewals <br />By Barnett Parker <br />at)d Vincente Paadeloup ^3 <br />^ABLE Television lost two important court <br />W cases last week. <br />In the more economically stinging of the two <br />judgments, the Supreme Court ruled states can <br />tax cable TV services while exempting other <br />media without breaching the First Aimendment <br />Tlie Arkansas Cable Television Association had <br />challenged a state sales tax that applied to cable <br />services and not to other media such as broad ­ <br />cast television, magazines and newspapers. <br />In the other decision, a U.S District Court in <br />SL Louis upheld the right of RoOa. Mo., to deny <br />the refranchising bid of Omega Communications <br />Inc., the first time a U.S Distikt Court has ruled <br />See COURT on page 27 <br />Discovery-PBS Talks <br />Revived With a Twist: <br />The Learning Channel <br />By Petty Ziegler <br />^HE D iscovexy Channel 's on again. off again <br />I relationship with the Public Broadcasting <br />Service may be on once again after the cable <br />network completes its deal to acquire The <br />Learning Channel. <br />Discovery Channel chairman John Hen­ <br />dricks said he will reopen discussions with PBS <br />for a “partnership or alliance* related to The <br />Learning Channel. “I want to explore that.* <br />Hendricks said. <br />PBS and Discovery last fall discussed <br />launching a basic cable network, but the talks <br />See TALKS on page 7 <br />SPOrniNO APPEAL <br />Of caN* .N'XtWWM pninn*. In' r <br />^ w 1 ' L '• Ti. I , • <br />\. <br />i