AFFILIATES DECLARE WAR ON TV NETWORKS, ASK FCC FOR INQUIRY

Said NASA in seeking FCC investigation: “When a national network enjoys undue leverage over an affiliated station’s operations, the local licensee’s ability to select community- appropriate programming and to make all significant business and operational decisions is significantly undermined. Viewers’ television service suffers because the programming they watch tends to be dictated by a centralized conglomerate -- not shaped by local station licensees that know and care about their home communities.”

With relaxation of rules and regulations to help networks compete in changing video marketplace, they “unfortunately… are now using their increased strength to exercise ever-greater control” over affiliates, NASA charged. “In many cases, their actions violate existing FCC rules and policies. In still others, their practices threaten core public interest principles such as program diversity and localism.”

Among alleged illegal practices cited by NASA are that networks: (1) Demand provisions in affiliation contracts that “effectively” prevent stations from preempting network programming. (2) Attempt, by Fox, to require affiliates “to give up all control over their digital capacity.” (3) Use by Fox, NBC and ABC of affiliation agreements to “unlawfully manipulate” contracts in station sales, “thereby subverting local licensee independence… This amounts to the network having veto power over the sale of an affiliated station… Although CBS has not yet exploited station sales… recent CBS affiliation agreements expressly provide that CBS may terminate the agreement without any reason” if affiliated station is sold. Petition cites specific examples of where affiliation agreements allegedly have been used to “unlawfully manipulate” station sales that “erode or eliminate” licensees’ control -- including KRON-TV San Francisco (NBC).

“Improper” -- but not illegal -- network practices that FCC should probe, NASA said, include “collaborations in collection and distribution of news” (such as exit polling), their “growing reluctance” to provide affiliates program exclusivity, “extent to which networks are using the power derived” from their ownership of TV stations to “unfairly control the distribution of video programming.” NASA Chmn. Alan Frank, pres. of Post-Newsweek Stations, said petition was filed because of “disturbing trend by the networks to assume greater dominance… We are partners with the networks, but we cannot stand by and let them control our local stations… This petition establishes that those core values [localism and diversity] are at risk.”

NASA knows it will be difficult to get new Republican- dominated FCC to start inquiry -- particularly in light of Chmn. Powell’s often stated view that marketplace should be main regulator (CD Feb 23 p1). With that in mind, group plans to lobby Congress heavily to apply pressure on agency. “We've got an uphill fight with Powell,” NASA official said, “but the Commission can’t neglect its responsibilities.” Pleading had more than 18- month gestation period, and purposely was withheld until after Presidential election. Affiliates’ plan wasn’t disclosed to NAB in advance of its filing at FCC. Assn. official said NAB had no comment at this time: “We're in the process of analyzing it.”

Only network to speak up by our deadline was CBS, which called filing “ill-advised and extremely disappointing, particularly giving CBS’s strong commitment to the network/affiliate relationship.” CBS official “categorically denied” network had undertaken any “unlawful activities whatsoever” and said it was “confident the FCC will find no merit in these baseless and irresponsible charges.”