02-11-1985 Council Packet - Laserfiche WebLink

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mlinnzapoais Star and Tribunin Established 1867 Roger Parkinson PuthshOr am Presiaem Joel R. Kramer Cxecutive Editor TIM J. McGuire Managing Editbr Robert J. White Editorial Editor 10A Friday, January 25, 1085 Cable TV struggles to find its place Rogers Cablesystems, the Minneapolis cable-televi- sior, franchise bolder, doesn't need to run snap ops:as: It is one. From many viewers' perspective, Rogers' tenure In the city must seem dominated by controversy, Instability, uneven service and efforts to renege on promises made to win the city fran. chm. Claiming financial distress, the company now wants further concessions from the city. De- spite the able company's mixed record here. short-term accommodation appears juaL'fied. Rogers backs Its request with strong financial evi- dence. While the Minneapolis cable system was expected to lose money In Its early years, the loses have exceeded forecasts. The resulting revenue shortfall requires Rogers to borrow more than anticipated to finish the system. The company's lender has already Olt off credit to another able company in a similar situation. Four factors are commonly cited to explain Rogers' weak ❑nenctal performance In Minneapolis. The first Is marketing Rogers says It has problems selling cable In Minneapolis, particularly to the city's older residents. Critics point to the company's failure to develop a strong marketing strategy. And its efforts do seem puny — a shortcoming shared by urban cable systems across the country. The Industry seems to have assumed that cable would Sell itself, and has been slow to respond when that proved unwe_ One reason the ssumption proved untrue, accord- Ing to Roger, Is Increased competition from video- cassette reeorden and other forms of entertain- ment. Moreover, In Minneapolis Rogers must com- pete with seven over -the -air television stations and a rich assortment of cultural and sports attractions. Some able-iodastry spokesmen cite a third factor over which system operators like Rogers have little control: programming quality. Rogers carries what production companies offer. And nationally the Industry is under fire for falling to provide the wide variety of programming earlier foreseen. The fourth factor is poor service. In Its short association with Minneapolis. Rogers has acquired an unfortunate reputation for not responding well to customer concerns. Rogers made extraordinary financial and service commitments to secure the Minneapolis francIlLSe. But If the company promised much, the city ALSO demanded much, and Rogers' bank Judged the franchise a safe Investment. All were reacting to what, In hindsight. were unreasonable expectations for cable television. It would be unfair to force Rogers alone to bear the penalty for that shared misjudgment And Minneapolis won't benefit by demanding compliance with the existing contract If that means a weaker, leseffective cable system. As Rogers' record In Minneapolis shows, urban cable television is an infant Industry groping to find its niche In a highly competitive environment. Just as xrly expectations of cable were thnated, an may present estfmales be understated. In respond. Ing to Rogers' latest plea, Minneapolis should help ease the company's rloancial burden while the system is being completed. The city should also make clear that Rogers mist help limit by Improv- ing marketing and service. Long-term adjustments to the franchise should be avoided until the system Is finished and a clearer picture emerges of cable television's place in the Minneapolis entertainment and communication markets.