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Hearing
<br />Ntr Thomson .aid TCI
<br />does not have a controlling
<br />interest in any programming
<br />entity, nor does the compare%
<br />want one He added that if it
<br />were not for TCI and other
<br />operators banding together,
<br />Turner Broadcasting Systeni
<br />Inc , in which TCI has a 12
<br />percent stake, would have
<br />"disappeared from the air-
<br />waves. "
<br />Sen. Metzenbaum said,
<br />"You don't have to have 50
<br />percent to have control. " Mr
<br />Thomnvri responded, "That
<br />well may he in general corpor-
<br />ate life," but that it is not true
<br />in votes in the TBS
<br />boardroom.
<br />Amos Hostetter, Continen-
<br />tal Cablevision Inc. chairman,
<br />pointed out that concentration
<br />in the cable business is not
<br />necessarily a bad thing because
<br />the cluslering of systems brings
<br />an efficiency of operations,
<br />marketing and service, which
<br />benefit the consumer
<br />Sen Metzenbaum chided
<br />officials of Viacom Inc , the
<br />parent of Showtime and other
<br />cable netivorks, for not tes-
<br />tifying at the hearing "It's an
<br />uncalled-for snub, and we re-
<br />sent it," the senator %aid
<br />IShowtime vice president
<br />Stu Ginsburg said Viacom of-
<br />ficials were asked to testify two
<br />weeks ego, but the company
<br />initially decided against it
<br />However, two days before the
<br />March I7, hearing, the mm
<br />pony changed its mind, but
<br />was told by the subcommittee
<br />staff that it was tcxi late be
<br />cause there were too many wit-
<br />oesses I
<br />NCTA's Mr Mooney
<br />pointed out that the cable in-
<br />dawy "had to come up with
<br />programming that was suffi
<br />ieiently different" to convince
<br />ermsumers of "the value in
<br />paying a monthly bill -
<br />"It's highly unlikely anyone
<br />slap, would put up the cork capi-
<br />twl and invest in these specialty
<br />artvices, , he add. l
<br />NCTA president James P. Mooney responds to a question at last
<br />week's hearings. Also testifying before the Senate antitrust
<br />subcommittee were (left to right) HBO president Joseph Collins,
<br />Continental Cablevislon chairman Amos Hostetter and Tele-Corn-
<br />municatlons Inc. vice president Robert Thomson.
<br />In another sparring match
<br />with Sen Metzenbaum over
<br />post -deregulation rate in-
<br />creases of 50 percent or higher
<br />in his home state of Ohio, Mr.
<br />Mooney said each of the 93
<br />systems would have to be luck-
<br />ed at individually to comment.
<br />"What could justify a 220 per-
<br />cent increase in Russell,
<br />Ohio?" the senator asked the
<br />NCTA chief
<br />Mr. Mooney pointed out
<br />that some places before de-
<br />regulation went into effect had
<br />"unreasonably low rates of $2-
<br />$4, end ended up, I'm sorry to
<br />say, having to pay more " He
<br />alvI noted that many operators
<br />instituted tier meltJowns in
<br />which subscribers were paying
<br />higher rates for basic service,
<br />but in return receiving many
<br />In terns of relations with
<br />broadcasters. Mr Mooney
<br />pointed out that NCTA twice
<br />has supported a compromise
<br />with the broadcasters on must -
<br />carry rules. only to have them
<br />thrown out by two federal ap
<br />peals courts "We're willing to
<br />go back and try again," he
<br />said
<br />Broad :aster representatives
<br />testifieoi how the loss of the
<br />must-csrn -ule was de.rimen-
<br />tal to the industry's existence
<br />because stations can be in-
<br />discriminantly dropped from
<br />systems, which, in turn, affects
<br />their ratings and advertising
<br />revenue
<br />William Finneran, chair-
<br />man of the New York State
<br />Conimission on Cable Trip -
<br />more channels
<br />vision, predicted that over-the-
<br />Sen Metzenbaum noted
<br />air bmadrsstina, as a sivifi-
<br />that the value of cable systems
<br />coat trsn•mi••N,n medium to
<br />has risen in the past years from
<br />the pwipulation at lame, will be
<br />$1,200 per subscriber to more
<br />extinct before the end of the
<br />than S2,000, meaning that
<br />century because of table's
<br />buvers are realizing "the per
<br />l for Iratci increases haw
<br />strength
<br />$enators to respond to calls
<br />not "
<br />not yet arriyetl
<br />The
<br />Federal nat(roarrlimuni�a�tion 'on
<br />live cable -TV broadcast
<br />Gimmission for its "failure to
<br />define effective competition
<br />U in `V comes to the state
<br />C apilQl t when Senate Media
<br />adequately," referring to the
<br />Sercicts presents its first live call -in
<br />FCC rule allowing cable sys-
<br />show -Capitol Callln" will be
<br />tempi to he free of hwal rate
<br />broadcast on Re�innal Cable Chan -
<br />regulation as long as three
<br />nel 6 from 4 to < p m., available for
<br />broadcast signsls cover the
<br />viewing by an esninatcd 250.000 ca-
<br />market He added that the
<br />ble subscribers in the 1 win Cities
<br />FCC's "strange definition" in-
<br />area. The prrgrsm also is scheduled a
<br />dieted a lack id public vim-
<br />wKk from today The wnstors who
<br />will respond to viewer questions to-
<br />eero
<br />day are Ember Reschgoit, DFL-New
<br />Hope; Crary Laidig, IA -Stillwater;
<br />parry Pogemilkt, DFL-Minneapx4n,
<br />f ntr Knask, DI L-white Bear Iake,
<br />and Allan Spear, DF"L-Minneapolis
<br />Viewers an call 296-I(ttltl to partici-
<br />pate
<br />, -, NQ
<br />%f.!X.g --4'tt'i1`1!� r
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