FOX WANTS ANTITRUST WAIVER FOR STATIONS TO NEGOTIATE WITH CABLE
LAS VEGAS -- Fox TV Network Pres. Tony Vinciquerra wants antitrust exemption from Justice Dept. to permit all TV stations in one market to negotiate jointly with cable systems on retransmission rights. Speaking at deregulation panel at NATPE convention here, he said waiver was needed because of cable’s monopoly in many markets and “we have to be able to deal with that monopoly.” He said pending merger of AT&T Broadband with Comcast would make that monopoly even worse. Young Bcstg.’s Debbie McDermott immediately endorsed Vinciquerra’s proposal, but panelist Jay Ireland, pres. of NBC TV stations, said network didn’t have position on issue.
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Bear, Stearns analyst Victor Miller said broadcasters had to “figure out a way to stop acting defensively” on cable matters and other issues. He called for repeal of cross- ownership restrictions, saying if newspaper, TV and radio were commonly owned “you will have somebody who can move offensively in the market.” Miller said upcoming great debate would be over “what is a voice” as defined by FCC, to which Vinciquerra responded: “The term is a mask… There is no definition.”
RTNDA Pres. Barbara Cochran said a major impact of ownership consolidation had been loss of localism in news. She expressed concern about direction local news was taking, which she called “the most valuable commodity” station had. Management must protect “the integrity of that news,” she said. McDermott, whose company owns independent stations in L.A. and San Francisco, said such stations that produced local news were seeking ways to co-produce news with other outlets, conceding that it would cost jobs. But, she said, in many local markets “there’s a lot more bonding going on” in local news production. NBC’s Ireland said farming out production of local news wasn’t good idea.
On deregulation, Ireland said “in practice, it has been excellent” by enabling groups to combine many functions in one place and save money. Miller said, without explanation, “central focus” of many rules changes had been “to choke off the oxygen that feeds” local stations. After small NBC affiliate complained from floor that under new network contract it would lose compensation in 2006, Miller said many small affiliates would fail without compensation and networks must prevent that from happening. Ireland said Big 4 networks not long ago had 85% of audience but “now everybody [cable and DBS] is eating our lunch.”
Miller said “I have never understood why there is so much animosity” between networks and affiliates “when there should be so much camaraderie.” He said networks must make sure local distribution system remains strong and healthy.
FCC Comr. Martin seemed to endorse cable must-carry requirement, but said Commission must establish new guidelines: “The biggest threat is inaction on our part… We need a level playing field.” NAB TV Vice Chmn. Michael Fiorile of Dispatch Bcst. Group said deregulation had helped provide better content because of “cost-saving measures” stations had been able to take as result. However, member of audience said: “In terms of providing programming diversity for the audience, I don’t see deregulation having any positive effect [and causing] more bad programming in the hands of fewer people.”
NCTA Exec. Vp Peggy Benzel said “competition is here” for cable: “The public has more and more of what it wants -- and that’s competition.” DBS competition “has certainly speeded the rollout of digital cable,” she said. Satellite Bcstg. & Communications Assn. Pres. Andrew Wright said govt. needed to take steps “to encourage high-speed [digital] rollout” DBS serves 18 million homes, he said, but only 129,000 subscribers have broadband data capability. Wright charged that must-carry was “absolutely the work of the devil,” violated First Amendment and “that’s bad for the public.” He said satellite operators should have right “to edit our channels to put in what consumers want.” Benzel said “somebody has to edit” and it should never be govt.