ABC, FOX REMAIN AT ODDS WITH TV AFFILIATES ON VARIETY OF ISSUES
Late Jan. west coast meetings of affiliate boards of Fox and ABC TV with network officials failed to solve divisive issues, with major problems of both groups put off for another day, according to accounts we've received from participants. Common problem with both groups has been practice of ABC and Fox of renegotiating affiliation contracts when station is sold -- which often results in reduction or elimination of compensation, even though network contract with station may have years remaining -- one of major issues about which affiliates complained in petition to FCC (CD Aug 24 p3).
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
At ABC meeting in Burbank, we're told by several sources that little or no progress was made toward resolving business issues dividing network and affiliates. One of biggest that expires this year is reluctance of some affiliates to continue to reimburse network $45 million annually toward cost of Mon. Night Football. Affiliates Chmn. Bruce Baker of Cox Bcstg. said board planned another meeting in about month, with football payments prime topic.
Another unresolved issue was ABC’s plan for program repurposing on Family Channel cable network acquired last year from Fox. Several sources said ABC officials were “very vague” about plans on cable programming. Subject of spring affiliates’ convention didn’t come up at ABC meeting, but network this week put end to rumor (which we first heard from ABC official) that it planned to host such gathering in Anaheim in May. Instead, official said, ABC again would hold series of regional affiliate meetings -- as it did last year after network canceled convention, also scheduled in Anaheim.
Biggest issue for affiliates at Fox meeting, we're told, was network’s desire -- in face of strong affiliate opposition -- to renew its prime-time inventory buy-back agreement with stations, which expires in June. Under deal, affiliates are paying network combined $170 million over 3 years for right to sell local spots in time periods formerly provided free by network. Fox’s poor prime-time ratings and depressed economy have made buy-back plan money loser for many affiliates, we're told. Fox agreement with affiliates to help pay for NFL rights still has year to run, so that won’t become issue until next year.
Tony Vinciquerra, newly-installed Fox TV Network pres., reportedly told affiliates network was determined to continue inventory buy-back plan in some form, but he was open to considering changes sought by affiliates. Issue was left open for further discussion, with another meeting planned in next few weeks. Affiliates generally are glad Vinciquerra, former group station executive at Hearst-Argyle, is heading network. “He’s one of us,” was sentiment of several.
As with ABC, Fox program repurposing plan for cable also was issue with affiliates, but nothing was resolved. Going into meeting, Fox affiliates expressed concern about network’s contract with 4Kids Entertainment to program Sat. morning, but Vinciquerra told us they came away well satisfied. Fox told affiliates 4Kids committed to making at least 3 hours of 4-hour weekly block “FCC friendly” programming under Commission rules. Under deal, 4Kids will pay Fox $25 million annually for programming time and affiliates will be able to sell locally twenty 30-sec. spots during 4-hour children’s programming.