EXECUTIVES - World Radio History

C

Raclin Bays for TV PromotionThe Big Business of Doing Good

CHANN EISAUGUST 13,1990 THE BUSINESS OF COMMUNICATIONS $5.00

TELEVISION'S

TOPEXECUTIVESThey're not the biggest but they're amongthe best: Introducing four of television's

unheralded leaders in a special report on thepowers behind TV's 76 publicly traded companies.

A. H. Belo's Ward Huey Imagine's Brian Grazer

...(amnr-414.0

ko0114A 61mc_QA

Sock_

TCA Cable TV's Robert Rogers Tribune's James Dowdle

Sfill1 El ElCelebrating A Decade Of

More Movies, More Choice.

CHANNELS

CHANNELSTHE BUSINESS OF COMMUNICATIONS

VOLUME 10, NUMBER 11

FEATURES

PROGRAMMING

- COMMUNITY AFFAIRS' NEW LUSTREHow a broadcasting backwater turned into a hot marketing

tool, and why some people's jobs will never be the same.BY DAVID BOLLIER

IN FOCUS: TELEVISION'S TOP EXECUTIVES

LEADERS OF THE PACKSuccess means more than a high profile for these four executives.

COVERSTORY

AUGUST 13, 1990

- THE POWERS THAT RUN TELEVISIONThe leaders of TV's publicly traded companies: Where are

they headed and how do they plan to get there?COMPILED BY STEVEN BESCHLOSS, LUCIA BOZZOLA, MICHAEL BURGI, JOHN FLINN, ANDREW

GROSSMAN, CHERYL HEUTON, ALEC JOHNSON, RICHARD KATZ AND MARK SCHONE

18

2638

OPERATIONS

MARKETING & PROMOTION 14It's How You Play the GameCompetition has forced TV stations to take a page fromradio history. Once considered déclassé, station -sponsoredcontests may soon be as much a part of television cultureas the commercial break . BY ANDREW GROSSMAN

SALES 16LIN's True BelieversOne station group has taken to heart the maxim, "Bemarketers, not order -takers." All seven of LIN Broad-casting's stations are putting Marshall Marketing &Communications to work BY AL IAFFE

DEPARTMENTS

REPORTS 6MultiVision breaks new ground again-unfortunately .Jackie Bison is extinct .. . Crosstown feud in Charlotte.

WHAT'S ON 12A monthly calendar.

MEDIA DEALS 51Leveraged Cop-outCable deal -makers want to blame bank rules for the slowmarket. It doesn't work that way BY CHERYL HEUTON

DATABASE 52SOUND BITES 5 4From an interview with Richard Wiley, chairman of theFCC's Advisory Committee on Advanced Television Services.

RUNNING THE NUMBERS 56Crashing the PartyPACs mean extra advertising dollars for stations.

2 CHANNELS / AUGUST 13,1990

au:les 'lopsthe "Nit

Cosby isn't a factor.Neither is Cheers, Who's

The Boss?, Growing Pains,Mr. Belvedere, Night Court,or Family Ties, when itcomes to retaining audiences.

It just proves whatwe've been saying all along:"Stripping 'off -first -run' works."

Let us show you how CharlesIn Charge and Out 0 This World(available as a strip is Fall)can fill your bill.

% OF TIME PERIODSMAINTAINED OR

IMPROVED5/90 VS 11/89

C6DMF.11E3 78%

CHEERS 59%

WHO'S THE BOSS? 58%

GROWING PAINS 55%

MR. BELVEDERE 54%

NIGHT COURT 46%

FAMILY TIES 36%

THE COSBY SHOW 31%

Source: NSI as dated.

M CA TVFirst in first run© 1990. MCA TV. All Rights Reserved.

CHANNELS

FALL SEASONLINEUP

Here's a look at our fall season lineup

with six "not to miss" issues...

September 10th

Power Programming: Strategies For FallBonus Distribution at the Eastern Great Lakes Cable Shows

Closes for space Friday, August 24th.

September 24th

The Changing News Mission & MSO FuturesBonus Distribution at RTNDA & Atlantic Cable Show

Closes for space Friday, September 7th.

October 8th

TV Marketing: Selling Television To The ViewerBonus Distribution at SMPTE

Closes for space Friday, September 21st.

October 22nd

Annual Salute To Excellence In TelevisionCloses for space on Friday, October 5th.

November 5th

Syndicated FuturesCloses for space on Friday, October 19th.

November 19th

Forecast '91: Where the Ad Dollars Will GoBonus Distribution at TVBA and CBA

Closes for space on Friday, November 2nd.

For further information please call:

(212) 545-5202 or (818) 709-9816


CHAINNEIS

Editor -in -ChiefJOHN FLINN

Managing EditorMARK SCHONE

Senior EditorsSTEVEN BESCHLOSS, ANDREW GROSSMANCHERYL HEUTON, NEAL KOCH (West Coast)

JANET STILSONAssociate Editor

MICHAEL BURGIAssistantEditor

RICHARD KATZWashington Editor

PENNY PAGANOContributing Editors

JOHN F. BERRY, ALEX BEN BLOCKDAVID BOLLIER, CECILIA CAPUZZI

MICHAEL COUZENS, L.J. DAVISMERYL GORDON, WILLIAM A. HENRY III

DAVID LACHENBRUCH, MICHAEL POLLANJAY ROSEN, HARVEY D. SHAPIRO

ADAM SNYDER, JAMES TRAUBInterns

LUCIA BOZZOLA, ALEC JOHNSON

Art DirectorSUE NG

Assistant Art DirectorDAVID SPERANZA

Photo ResearchLAURIE WINFREY/CAROUSEL INC.

PublisherJOEL A. BERGER

Advertising Sales ManagersNELDA H. CHAMBERS, ISAAC DANNER JR.

RICHARD J. PETRALIAAdvertising Services ManagerJEANMARIE McFADDEN

Assistant to the PublisherJACQUELINE ALTAMOREAdvertising Sales Assistants

JULIE HARRIS, STACEY ROSOFF

Production ManagerRACHEL COHEN

Advertising Sales OfficesNew York: 401 Park Avenue South, New York, NY 10016,212-545-5100; Fax 212-696-4215, West Coast: 19725 Sher-man Way, Suite 380, Canoga Park, CA 91306, 818-709-9816;

Fax 818-709-5314

ACT III PUBLISHINGPresident

PAUL DAVID SCHAEFFERChief Operating OfficerROBERT C. GARDNER

Senior Vice President & Group Publisher,Media & Television Groups

DAVID PERSSONSenior Vice President,Operations & PlanningMARTHA A. LORINI

Vice President, Finance & AdministrationSAM SCHECTER

Director of Marketing & CommunicationsJENNIFER WARE

Director of CirculationSTEPHEN F. WIGGINTONDirector of Manufacturing

CRAIG C. BALICK

CHANNELS The Business of Communications (ISSN0895-643X) is published twice monthly except monthly in July andAugust by C.C. Publishing LP, an affiliate of Act HI Publishing, 401Park Avenue South, New York, NY 10016. Second class postage paidNew York, NY and additional mailing offices. Volume 10, Number 11,August 13, 1990. Copyright 0 1990 by C.C. Publishing Inc. All rightsreserved. Subscriptions: $65 per year; all foreign countries add $18.Please address all subscription mail to CHANNELS TheBusiness of Communications, Subscription ServiceDept., P.O. Box 6438, Duluth, MN 55806, or call 218-723-9202. Postmaster: Send address changes to CHANNELS, TheBusiness of Communications, Subscription Services Dept, P.O. Box

6438, Duluth, MN 55806. Editorial and business offices: 401Park Avenue South, New York, NY 10016;212-545-5100.

Unsolicited manuscripts cannot be considered or returnedunless accompanied by a stamped, self-addressed enve-lope. No part of this magazine may be repro-duced in any form without written consent.

43Er.

On Wednesday night,

NBC reported the unexplained

disappearance of 1,334,778

women within 30 minutes.*

IIIIIIREPORTSIIIIIICable's SpotlessRecord at Risk?

A possible default by Maryland Cable looms.

In the face of reluctantbankers and other sourcesof deal money, cable promot-

ers have defended their indus-try's debt -laden structure byboasting that no lender hasever foreclosed on a majorcable loan. But MarylandCable Corp., which lost $5.8million in the first quarter of1990, could end the streak.The system's troubles arecausing widespread worrybecause they result not fromfreak chance, but rather frommistakes and strategies fairlycommon to the industry.

Prime Cable sold the PrinceGeorge's County, Md., systemin 1988 for about $198 million,or $2,800 for each of the 70,000subscribers. The buyer, MLMedia Opportunity Partners,paid 12.5 times projected cashflow.

ML Media, formed by I.Martin Pompadur, his latepartner Elton Rule and Mer-rill Lynch & Co., is one ofthree limited partnerships thatown the systems operatedunder the MultiVision CableTV Corp. name. (Pompadur ischairman and chief executiveofficer of MultiVision.)

The '88 deal doubled Mary-

land's annual cash interestexpenses from $5.2 million to$9.6 million; total annual inter-est (including costs relating to

a junk-bond offering) is about$25 million. According to ananalysis by Standard & Poor's,first-quarter cash flow beforecapital spending covered only53 percent of total interestexpense.

In March, MultiVision namedDavid Van Valkenburg presi-dent and chief operating offi-

cer; under his leadership anew Maryland general man-ager was hired. The challengenow is to persuade lenders toaccept a variety of new terms,because losses have forcedMaryland Cable to violateminimum requirements forcash on hand relative to itsinterest payments.

Maryland's problems arePompadur's second industryembarrassment. MultiVision'saggressive rate hikes in west-ern Tennessee helped reignitethe regulation issue, which inturn has undercut systemprices. A foreclosure in Mary-land could further underminethe market.

ML Media's I. MartinPompadur: More troubles at aMultiVision system could focusadditional attention on highlyleveraged cable deals.

A few tactical errors helpedpush Maryland into its currentpredicament. In 1989, itlaunched a costly pay promo-tion based on slashed rates.Subscribers signed up, only tocancel-or just stop pay-ing-when the promotionended. In addition, the cost ofexpanding into non -cabled

areas proved higher thananticipated, requiring Mary-land to ask banks to waive thecapital spending limits theyhad set.

In June, Standard and Poor'slowered the rating on Mary-land's subordinated debt to"CC" from "CCC." In a creditbulletin, S&P analyst RichardSiderman states, "The down-grade reflects MarylandCable's increasingly limitedcapacity to meet scheduledprincipal debt payments andoperating cash requirements."

John Motulsky, MultiVisionsenior vice president, saysdiscussions with banks "areencouraging, though we're notfar into the process." Agree-ments that would end the fore-closure threat could takemonths, Motulsky says.

Maryland has strengths, saySiderman, Motulsky and oth-ers. Penetration is roughly 60percent; its monthly averagefee per subscriber is $40. Theproblem with high debt costs,however, is that they don'tleave room for setbacks, Sider -man says.

Other systems strugglingwith stymied growth, weakcash flow and debt are watch-ing Maryland nervously. "Ifthey go into default, thenother lenders will start lookingat their own cable loans," saysa cable executive. "They mightlet Maryland color their judg-ment, and in some cases itshould. But a lot of good sys-tems could get hurt."

CHERYL HEUTON

You're NoBart SimpsonJackie Bison doesn't make the prime -time cut.

It wasn't Jim and Bob's ideato compete with Bart andHomer. In fact, it was

Roger Rabbit that spurredthem to pitch NBC on an ani-mated prime -time show.

But by the time the pilot forThe Jackie Bison Show wascompleted in March, TheSimpsons was a nuclear -pow-ered hit. The comparison was

unavoidable, even thoughJackie Bison was heavily pop-ulated with show -biz animals,not real -life people. Suggestedone person at a privatescreening, "Maybe it shouldhave a Bart character in it."

If not for The Simpsons,writing partners Jim Steinand Bob Illes believe, NBCmight have taken a chance on

their show and bought a num-ber of episodes. Between poortesting and doubts that JackieBison would ever shine in thelight of The Simpsons, how-ever, NBC swallowed its

Jackie Bison: WithFox's Simpsons asthe new standard,Jackie wasn't whatNBC had in mind.

$700,000 -plus gamble. Steinand Illes had to settle for oneairing of their pilot, justbefore Independence Day.

That was a far different end-ing than they-or their anima -


A similar problem was

reported to have affected

1,012,575 men on

the same evening.*

tion partner Peter Rosen-thal-had originally envi-sioned. Rosenthal, a co-ownerof production company Broad-cast Arts, was brought into theproject after the comic writingduo pitched their concept toRick Ludwin, NBC senior v.p.,specials and variety programs.Inexperienced with animation,they were counting on therelationship to give them abetter sense of how to wedwords with visual gags.

Rosenthal will never forgetthe day in early '89 whenBrandon Tartikoff came toNew York to see the show'sstoryboards. "It was one of

the most exciting points in mycareer," he says.

But by various accounts theelation of that day did not last.It was soon dampened bybloody battles between thewriters and Rosenthal. Steinand Illes maintain that JackieBison could have been com-pleted prior to The Simpsonshad creative differences notslowed the process. But theyalso had trouble translatingtheir ideas (and their English)for the South Korean anima-tion house-ironically, thesame one that draws Homerand Bart-hired to finish thedrawing and photography.

Says Stein, "We were alreadyon episode 22 in our mind-and we were still strugglingto finish this one pilot."

In the end, what NBC gotwas a Jack Benny-esque for-mat that moved back andforth between the personaland stage life of Jackie Bison,a buffalo introduced as "Amer-ica's beast of buffoonery" bythe animal kingdom's EdMcMahon, Larry Lizard. Itwas a mixture of animation,live -action inserts, sitcomstorylines, commercial breaksand news segments, all over-laid with a laugh track andcanned studio applause.

Stein and Illes say theshow's structure recollectedthe hyperkinetic Laugh -In.NBC's testing process deter-mined that viewers found itjarring, missed a linear storyline and were not surewhether it was for kids oradults. Rosenthal says thevision of the show "got a bitdefused" and never tran-scended the format. "Theshow did not translate to acontemporary vision of oursociety in a meaningful way,"says Rosenthal.

The standard -setting Simp-sons are a tough act to follow.

STEVEN BESCHLOSS

Indie-Fox RivalryIn CharlottePride and $$ at stake in local battle.

There is hope for all thosenon -Fox indies strugglingto compete with the

searchlight hype of the FourthNetwork-just look at Char-lotte, N.C. There, independentWJZY-TV is winning its fairshare of skirmishes in a heatedbattle with the Fox affiliateacross town, WCCB-TV

Despite WCCB's Fox prime -time lineup and Charlotte Hor-nets basketball package, WJZY(channel 46) has given the Foxaffiliate (channel 18) a run forits money: Arbitron has themdead even at a 2 rating/6 sharesign -on to sign -off in its Febru-ary and May books. DuringFox prime time, WCCB is aclear winner-on Sundays inMay it pulled a 7/12 at 8 P.M.,versus a 1/1 for WJZY-but inother dayparts the two stationsare extremely close.

And the competition isn'tstrictly professional. MarkConrad, general manager atWJZY since its sign -on in 1987,was hired by WCCB's owner,Cy Bahakel, back in 1978 torun WCCB. The station wasmaking a transition from ABCaffiliate to independent afterbeing dropped by the networkin favor of a VHF signal. Con-rad handled the switch and hadWCCB's indie business boom-ing, but was fired a year later.

Charlotte insiders say Conrad'scontract with Bahakel gave himan unusually large percentageof the station's billings, andthey allege Bahakel dismissed

ager Steve Soldinger deniesprior knowledge of the stunt.

Personalities aside, WJZY,owned by Raleigh, N.C.-basedCapitol Broadcasting, has keptpace with WCCB by dint of its"very, very deep pockets andgood management," says CullieTarleton, senior v.p. and generalmanager of Charlotte's CBSaffiliate, WBTV "They built atechnical facility that rivaledanything in the market andthey have the funds to compete

WJZY's "Sky Jam '90" stirred community interest and made a profit

him because Conrad's bonuseswere so big.

More recently, Conrad hadbeen pitching Fox hard toswitch its affiliation to WJZY.When Fox chose to renew withWCCB earlier this year, theWCCB staff sent a fellowdressed in a fox costume overto WJZY. The furred messen-ger handed Conrad a note say-ing, "You've been outfoxedagain!" WCCB general man -

with the affiliated stations intown for syndicated program-ming." WJZY has Night Court,Who's the Boss? and it justbought Married . . . With Chil-dren. WCCB has a less glam-orous -sounding lineup, but thathasn't meant lesser ratings: InMay, WCCB's The Jefferson at6 P.M. beat Who's the Boss? onWJZY, 2/4 to 1C2.

Still, WJZY is less than threeyears old, so its overall perfor-

mance is impressive. Jeff Bor-den, the former TV critic forthe Charlotte Observer,attributes much of WJZY'squick success to its promotionand marketing. "Their on -airlook was so clean and stylish, itmade [Channel] 18 look clunkyin comparison," he says. WJZYspecializes in kitschy and cleverpromotion; a print ad for thesci-fi movie Strange Invaderspictured one of the extraterres-trial creatures with the head-line, "Illegal Aliens."

Nightly call -in contests dur-ing sweeps, annual sweep-stakes, direct mailers and spe-cial events are the otheringredients of WJZY's promo-tional philosophy, says promo-tion manager Steve Pickle. "Werun the station basically as anold-fashioned radio station," heexplains. WJZY staged "SkyJam '90," a music and hot-airballoon festival, over a weekendin June. Pickle estimates 10,000to 12,000 people attended.

Despite its gradual shift intoan affiliate via Fox, WCCB stillsees WJZY as a primarythreat. "We certainly view our-selves as being the independentcompetitor of JZY in kids,fringe, access and the twonights of prime -time movies,"says Jeff Arrowood, WCCB'spromotion manager.

For fall Arrowood is concen-trating on promoting his kidsblock with a revival of WCCB'skids club. WJZY also has a kidsclub, and will try to matchWCCB point for point. InCharlotte, stiff competition isbenefiting viewers of all ages.

RICHARD KATZ

8 CHANNELS / AUGUST 13, 1990

Fortunately, NBC authorities

were able to put a stop to

this strange behavior.

They signed

up for

therapy.

And now,

so can you.

woomm, Nn, DEAR JOHN (1/173/14/90) vs. FM (3/28-4/18/90). Adults 18-49.

The funniest single show on tele-vision is now available for syndi-cation in 1992. It's DEAR JOHN,and as NBC experienced, Wed-nesday nights are just not thesame without this broad appealcomedy. In fact, when NBCbrought in a temporary replace-ment, they subsequently lost over2,000,000 adult viewers 18-49.That's when they realized howmuch DEAR JOHN was missedand brought it back just in timefor the May sweep. So if you'relooking for a show with "staying"power, this is one half-hour ofcomedy you should sign up for.

WHAT'S ON

WesternSunrise?

BY RICHARD KATZ

AUGUST 21: The MTV Networks' affiliateadvertising sales workshop road showmakes a stop at the Syracuse Marriott inSyracuse, N.Y. The road show, in its secondyear, will bring Steve Houck, director of affili-ate ad sales for MTV Networks, and a staff oftwo to hotels in 30 DMAs this year. Theyadvise account executives at affiliate cable sys-tems and interconnects on how to sell localinserts on MTV, Nickelodeon, Nick at Nite,VH-1 and HA! "A lot of people think thatMTV, because its target audience is young,that the only people who advertise on MTVlocally are pizza places and record stores,"explains Mark Rosenthal, executive vice pres-ident of affiliate sales and marketing for MTVNetworks and the man to whom Houckreports. "So, we show them a success storyfrom another market where a local bank foundMTV to be the perfect vehicle to reach collegekids getting their first checking accounts."

SEPTEMBER 1: After 20 years on CBS, Gun -smoke went off the air 15 years ago today,marking the virtual disappearance of theWestern from network television. But withThe Family Channel's successful schedule ofboth off -net and self -produced Western series,ABC's renewal of The Young Riders andCBS's decision to keep Paradise alive as amid -season replacement, the Western, whilehardly dominating the ratings books, hasfound new life on the small screen. PaulKrimsier, vice president of programming forThe Family Channel, comments on therevived interest in Westerns. "About 15 yearsago," says Krimsier, whose network carries 17hours of Westerns a week, "television reallygot into reflecting current social issues andWesterns weren't able in the creative sense toplay out current social issues-terrorists anddrug deals didn't play out as well in a Westernas in Starsky & Hutch. We've been a littlesocial -issued out and now we realize regard-

less of what the social issue is, it's really anissue of character, the challenge and opportu-nity for someone to stand up and say, 'Here'swho I am.' This is so apparent in Westernsand makes them very attractive."

SEPTEMBER 9: The second massive CBS/Kmart fall -season promotion launches todaywith added new partners Pepsi, Isuzu andMastercard International. The networkdeclared last year's campaign a huge successwith premiere -episode ratings up 28 percentover the previous year, according to GeorgeSchweitzer, senior vice president, communi-cations for CBS. How did the affiliatesrespond? "I don't think it was a barn -burneras a revenue producer," says Barry Smith,senior vice president for Schurz Communica-tions and chairman of the CBS Affiliates Advi-sory Board. "It did increase sampling, so theywere happy with that." Mick Schafbuch, v.p.and general manager for KOIN-TV in Port-land, Ore., says morale was high for the pro-motion at this year's CBS affiliates meeting,mainly due to what is perceived as a muchstronger CBS fall schedule. "Last year, CBS'ssampling . . . was up significantly," he says."What happened, of course, is that the prod-uct didn't fulfill the promise."

SEPTEMBER 9-12: The National Associa-tion of Telecommunications Officers &Advisers (NATOA) celebrates its tenthanniversary as a cable -industry watchdog atits annual conference at the Hyatt Regency inDearborn, Mich. The 464 -member organiza-tion, made up mostly of cable regulators,favors the return of cable rate regulation tolocal government. Congressman John Dingell(D -Mich.), chairman of a House committeeweighing cable reregulation, and Black Enter-tainment Television president Robert John-son are penciled in as featured speakers.

AUGUST CALENDAR

August 15: Deadline for nomi-nations for Women atWork broadcast awardsfor news and entertain-ment programs, spon-sored by the NationalCommission on WorkingWomen. Contact: SteenaLand, (202) 737-5764.

August 17-20: Idaho CableTelevision Associationsummer show. ElkhornResort, Sun Valley, Idaho.Contact: Tim Brennan,(208) 345-0362.

August 22-24: Alabama CableTelevision AssociationAnnual Convention. TheGrand Hotel, Point Clear,Ala. Contact: Mary JohnMartin, (205) 834-2282.

August 23-25: West VirginiaBroadcasters Associa-tion 44th annual fallmeeting. The Greenbrier,White Sulphur Springs,'W.Va. Contact: MarilynFletcher, (304) 344-3798.

August 28: 1990 ProfessionalBreakfast Series, featur-ing Ruth Otte, presidentof The Discovery Chan-nel, sponsored by AtlantaWomen in Cable. WestinLenox, Atlanta. Contact:Pam Hayes, (404) 928-0333.

September 9-11: The SouthDakota Cable TelevisionAssociation Annual Show.Lead, S.D. Contact: SteveSchirber, (605) 886-7990


Which is the

only daytime

talk show that

grew this year?

MARKETING & PROMOTION

It's How YouPlay The Game

A tough marketplace has TV stationsimitating radio contests to win viewers.

BY ANDREW GROSSMAN

Carl Bauman isn't crazy about con-tests. Yet last May, during the rat-ings sweeps, the director of adver-tising and promotion for Memphis

CBS affiliate WREG gave away a house.Long the staple of radio stations thatface tough competition on a fragmenteddial, contests are becoming TV stations'hottest tool for hyping ratings and lur-ing new sponsors. Even those launchingcontests, however, have reservations. "It[says] something [about] the integrity ofTV stations," Bauman concedes. "Wewon't do a lot of them."

But in Dallas, Rick Davey, creativeservices director at independent KTXA,speaks of "Watch and Win" and "ThePhrase That Pays" with evangelical fer-vor: "You're going to find TV stationsacross the country doing things a littlemore creatively, coming out of the closetso to speak. Radio stations have beendoing it a long time. There must be areason why."

Despite his ambivalence, Baumanagrees that contests have a big futureat stations. While small-scale contestshave been around for years, Baumansays sluggish ad growth and competi-tion from cable and VCRs has turnedthem into major promotional vehicles.

'We're all fighting for audience. We'reall fighting for revenue. The quality andscope of these contests have beenbroadened so they have to be donemore professionally," says Bauman,whose station printed a million gamepieces. WREG's contest, promoted on -air and through local media and retail-ers, asked viewers to match symbolsunder two perforated windows on gamecards to win cash and prizes.

Consultants are also boosting con-

tests. "Stations haven't had to do it untilnow. They pretty much had their ownway," says Dave Spence, vice presidentof Audience Research & Development.Spence heads a new AR&D divisionthat will work with stations on sales -generating promotions.

Originally conceived as purely promo-tional tools to boost ratings in specificdayparts through "forced viewership,"contests are now used to generate adsales. "When we first started," saysBauman, "they were primarily audi-ence -driven: 'Let's find new ways of get-ting people to sample a program.' That's

Mn a Brand New REEVES-WILLIAMS Home...

LIkt.,,1%;da

WREG TV GIVEAWAYOr $5000 IN CASH - INSTANTLY'

Viewers snapped up all 1 million of WREG's game cards.

evolved to the point that if we're goingto spend this much money to generateaudience we should use the same vehicleto generate some revenue." Accordingly,WREG's "American Dream InstantGiveaway" contest had two elements;one which forced viewers to watch spe-cific shows to win, the other an advertis-ing and promotional vehicle.

Game cards were distributed at threeoutlets: Wendy's, an auto -parts storeand a drugstore chain. WREG airedmore than 300 on -air spots, telling view-ers where to get the cards. Besides theperforated windows, the cards had

room to promote the client's products,programming or a community -servicecampaign. Bauman says more than5,000 viewers have so far claimed prizesranging from video rentals to hamburg-ers to the grand prize, a house.

Bauman says he tells sponsors thatthey're paying to get traffic. "They'renot buying a spot schedule. They'repaying for the privilege of being part ofthe promotion as a direct outlet. Thatmoney helps pay for the contest."

The watch -and -win element ofWREG's game featured three CBSshows and Entertainment Tonighthosts John Tesh and Mary Hart. View-ers won if symbols displayed during theshows matched symbols on their cards.Those who called within 20 minutes wonfrom $100 to $1,000.

The result? From February to May,Bauman says share points rose on twoshows, Rescue 911 and Major Dad,although Murder, She Wrote lost sixpoints. He blames that on a 12 pointdrop in HUT levels, according toNielsen figures, although Baumanadmits falling HUT levels do not neces-sarily affect share points.

In Dallas, KTXA opted against anadvertising element in giving away$44,100, concentrating instead on boost-ing ratings. Viewers had to watch the 5P.M. to 7 P.M. block to pick up clues. At7:21, a crawl would run asking viewersto call in with "The Phrase That Pays"to win cash, $2,100 a day for 21 days.

"We kept it pure and simple," Daveysays. KTXA wanted to "drive anotherotherwise unattainable ratings point;"

Davey says the 5 PM. to7 P.M. sitcom blockgained 150 percent inMay from a year ago."The word of mouth thestation developed . . .

you had to be sittingacross from these peo-ple that never won any-thing in their lives,"he says.

There are potentialpitfalls: Bill Alfredo,

president of Unidyne Communications,which runs WREG's contest, advisesstations to protect themselves legallyby detailing the odds and prizes. Theyshould also be alert to possible abuseswithin the distribution channel-at oneradio station, employees were winningby blocking incoming phone lines.

Davey expects the number of contestson stations to skyrocket: "Radio sta-tions will tell you, it doesn't matterwhat format a station is running. Whenyou've got so many viewing choices,people are going to be motivated by theuniversal motivator-money."


SALES

LIN's TrueBelievers

Many stations pay lip service to market-ing, but the LIN group puts it into practice.

BY AL JAFFE

The concept that sellers of adver-tising should be marketing con-sultants and not merely peddlersof space and time is more than a

belief with LIN Broadcasting Corp.It's a matter of policy.

LIN has been placing its sales -devel-opment chips on researching the needsof advertisers via the "Target Dollars"system from Pittsburgh -based Mar-shall Marketing & CommunicationsInc. LIN has been working with Mar-shall since the marketer's early days inthe mid -'80s, and over the years hasbecome Marshall's biggest customer,with all seven of its affiliates-four inthe top 50 markets-now signed up.

Gary Chapman, president of the LINTelevision Group, says Marshall Mar-keting is helping "to transform oursalespeople into marketing people,"adding, "Have we made a completetransition? No. Are these the tools weshould use? Yes." Research servicessuch as Marshall's are necessary, Chap-man believes, in order for TV stationsto more effectively sell against newspa-pers, which have more resources forgathering qualitative marketing data.

The Marshall approach calls forheavy customer input to the researchstudies it conducts for client stations.The research/marketing company con-ducts annual telephone surveys thatinvolve interviews with anywhere from500 to 1,500 adults and take about 20minutes each. But what really makesMarshall distinctive, says the company,is its PC software, which enables sta-tion salespeople to convert an undi-gested mass of data into saleable facts.Marshall also incorporates psycho -graphics into its research, being an

accredited user of VALS 2 (see Chan-nels, July/August 1989). The "TargetDollars" system does not come cheap,however. It runs from $40,000 to morethan $100,000 a year, although a low-cost version for small stations is avail-able for about $20,000.

LIN's efforts are typical of ways Mar-shall's custom research can be used:

WISH -TV Indianapolis used a Mar-shall survey to help a hometown sport-ing -goods store, facing an invasion by amajor chain, uncover some unexpectedperceptions among potential cus-tomers. Scott Blumenthal, general

'Have we made a com-plete transition? No.

Are these the tools weshould use? Yes.'-Gary Chapman,

president of the LINTelevision Group

sales manager of WISH, says the storeowner was surprised to find that con-sumers regarded his inventory aspricey. He also found out why he had sofew female customers even though 50percent of his floor space was devotedto sporting apparel for women: Moststore decorations were male -oriented.Redecoration of the store and a cam-paign emphasizing value pushed salesup 40 percent in six months.

A single question asking how voterswere registered enabled KXAS-TV in

Dallas -Ft. Worth to attract consider-able political advertising with its Mar-shall survey during last year's contestto replace House Speaker Jim Wright.(The race involved a runoff won byDemocrat Pete Geren.) Notes g.s.m.Patty Parker: "Buyers for politicalcampaigns used to clear what theycould get. Now we could go to a con-gressional district and show data onvoter age, registration and viewinghabits." KXAS could sort by voting dis-trict because it had 1,300 respondentsto its survey.

WAND -TV in Springfield -Decatur -Champaign, Ill., signed up a brand-newOldsmobile dealership and began aseries of annual queries tracking namerecognition. "We also provided facts onattitudes toward the dealership," saysLarry Katt, station vice president anddirector of sales. According to Katt, thedealer follows the name recognitionresults closely, which suggests thattracking data is an effective tool forkeeping advertisers loyal.

LIN station executives note that theprocess of exploring an advertiser'sneeds when developing material for theMarshall questionnaire is an importantlearning experience, and helps sharpenthe marketing skills of a stationaccount executive. Jane Wallace, presi-dent and g.m. of KXAN in Austin,Texas, describes the building of a Mar-shall questionnaire in these terms: 'Wetell a business, 'If you'll share some ofyour knowledge with us, we'll give yousome new knowledge in return.' "

Marketing like this requires a differ-ent mind -set than selling, LIN's Chap-man believes, and he says it's notalways easy to change the orientationof salespeople. Douglas Adams, presi-dent and general manager of LIN'sWAVY -TV in Portsmouth, Va., says,"Some people have the knack; somepeople can learn." He notes that theveterans in his sales force, about 40percent of the total, have made thetransition well, but he knows of one sta-tion where "the people weren't able toadapt."

WISH's Blumenthal takes a crack atdefining the difference: "Marketing istaking people who have no interest inyour product or service and gettingthem to consider it. Selling is takingpeople who are considering your prod-uct and turning that into an order."

The ideal station salesperson blendsthe two. Warns WAVY's Adams,"There is a danger in putting too muchemphasis on consulting. You have to beable to chise a deal."

Al Jaffe is a New York -based freelancewriter who specializes in TV sales.


aVelp'21vMULTIMEDIREl I I EH I F-linmEnT The talk shy who listens.

Source Novell-81er F ebwar, May 88 89 a, 89 90 Maitarodia f ,tc,,Faa8.88.RIgna. Ft,erved

did someone say smarm?Turn on the tube these days and you may get buried in

an avalanche of broadcast do-gooding, a tsunami of warm,fuzzy feelings. In Baltimore, WJZ saluted the volunteer

"cuddlers" who hug infants at a pediatric hospital. In Lancaster,Pa., WGAL sponsored a "Coats for Kids" drive as part of its"Time to Care" campaign. From Tallahassee to Tacoma, hard-bitten executives suddenly go gooey at the heartbreak and tri-umphs of disabled kids, illiterate kids, abused kids and, for goodmeasure, blood drives, walk-athons and volunteer-athons.

Are broadcasters closet sentimentalists? Crypto-activists?Just good citizens who truly care about their communities?Yes, yes and yes. But increasingly stations also have a keen

financial incentive for undertaking community service cam-paigns. Much of the transformation in this once -sleepy area ofbroadcasting is fueled by competition. Faced with a chronic needto improve operating efficiencies and to differentiate themselvesfrom cable, more broadcasters are hammering communityaffairs into a competitive weapon-localism.

The "social conscience"that results, when skill-fully packaged, can flushout new advertisers, bur-nish a station's imageand generate pure gravyvia syndication. Corpo-rate underwriters lovethe halo effect, and non-profit charities aregrateful for the publicity.

It's a "win -win" situa-tion, as community af-fairs directors love toput it.

While the genre is notentirely new, its popular-ity is surging. No hardstatistics are available,but leaders of the Na-tional Broadcast Associ-ation for CommunityAffairs (NBACA) see anunmistakable shift in thejob responsibilities ofmembers. "We talkmuch more about sellingthese days," says PaulaMaes, president-elect ofNBACA and promotiondirector (formerly com-munity affairs director)at KOB-TV in Albuquerque. "We wouldn't have talked aboutthat five years ago. Now our people go out on sales calls." Maesalso represents a trend in station staffing: More and more com-munity affairs positions are being blended into promotion orsales titles. 'We simply can't afford the luxury of having publicaffairs and promotion people function on a mutually exclusivebasis," says Karen Lee Rice, programming/creative servicesmanager at KOIN in Portland, Ore., and the current presidentof NBACA.The chief vehicle for community affairs is the "total station

campaign," in which stations showcase their social consciencesby melding community affairs with station promotion, and coor-dinating the project with the news and sales departments. Asmore stations have adopted this model, a diverse array ofnational syndication and consulting services has emerged to ser-vice a booming niche market.

One of the most significant developments may be the entranceof Hearst Entertainment Distribution (a division of HearstCorp.) into the field with its "Great Expectations: The EducationProject," a campaign developed at Hearst's Boston station,

WCVB, and now sold in over 40 cities. The campaign usesgeneric vignettes, documentaries, dramatic specials andPSAs all of which can be localized-to focus attention on prob-lems in public schools. Stations also receive ad support and sug-gestions for tying in with local sponsors. A second national cam-paign is in the works.

In addition, a scrappy band of entrepreneurs is springing up tooffer their own creative variations on the genre. There's YarosCommunications"Weatherschool" curriculum, which some75,000 teachers have used to teach atmospheric science andgeography in the classroom-with each day's lesson tied to theweather report on the local news. Cecil Productions, an Okla-homa -based firm, syndicates PSAs profiling the founders ofmajor national charities, which can be customized with localfootage, news anchors and voiceovers.

Sensing a ripe market, enterprising stations such as Washing-ton, D.C.'s WRC and Salt Lake City's KUTV are starting tosyndicate their homegrown community affairs projects. TheRadio -Television News Directors Association (RTNDA) and

Broadcast Promotionand Marketing Execu-tives (BPME) have eachdevoted panels to com-munity affairs duringtheir annual conventions,aiming to educate mem-bers about the nuts -and -bolts workings of thesehybrid campaigns.

For years communityaffairs was the uglyduckling of broadcasting,the windowless officedown the hall where asecond -rung managerlogged in PSAs, pre-pared FCC -mandatedrecords, and perhapsproduced a somnolentSunday -morning talkshow. After the FCCeliminated most specificstandards for public ser-vice in the mid -'80s, com-munity affairs didn'twither, as many pre-dicted, but became aglitzy, market -drivenCinderella.With its hugely suc-

cessful 1985 innovation,"For Kids' Sake," Group W was the first to understand howcommunity affairs could be turned into a blockbuster. Group WTarget Marketing sells a fill -in -the -dots package, providinghigh -quality PSAs, image promos, documentaries and other cus-tomizable programming. Some stations throw it up on thescreen and do little else; others mount major community out-reach efforts around the campaigns.

Company spokespeople decline to name sums, but Group Wpackages appear to sell for more than $50,000 in mid -sizedADIs, and six -digit sums in major markets. With 104 stationssigning on to "For Kids' Sake," and many of them staying onwith follow-up campaigns for the past six years, Group Winvented a virtual money -making machine. The company is notabout to lose its hammerlock on this specialized market, butDavid Lalich, v.p., sales and marketing, Group W TelevisionSales, says he "doesn't take the new competition lightly." Herefuses even to name any of his rivals.

One major competitor, consultant Jerry Wishnow, is bestknown for helping the Anti -Defamation League design and mar-ket its acclaimed anti -prejudice campaign, "A World of Differ-

PROGRA MMING

CommunitYAffairs'

New LustreWin -win' is the rallying cry as sta-tions find the gold in doing good.

By David Bonier


ence," currently in 21 markets. He also sells a widelyadmired-and imitated-campaign to encourage pregnantwomen to obtain prenatal care. (See box on next page.) In mostof his projects, Wishnow works closely with stations, civicgroups and sponsors to assemble customized campaigns, usingtheir resources. By contrast, Group W and Hearst provide morepreproduced programming and less on -site assistance.

Wishnow explains why the new breed of "win -win" communityaffairs has such wide appeal: "You position yourself as a friendof the community and in that way gain viewer loyalty, and inthat way gain revenues. Suddenly, instead of community affairsbeing all but unnecessary, it is the motive force in generatingnew revenues."

Whatever its overall value, community affairs has proven itsability to successfully woo new advertisers. From remote Bain-bridge Island, Wash., Susan Levy's Health Marketing Solutionshas made a business out of finding new advertising/programvehicles for hospitals and other non-traditional advertisers whoinsist on a low-key approach. "We never utter the word advertis-ing," says Levy with amock shudder. "It's a`community educationalannouncement.' "

Going well beyondspots, Levy buildscustomized campaignsaround program -length"infomercials." AlthoughLevy's strategies vary, ahospital often providesmedical information fora program, a retailermight distribute promo-tional materials and sellproduct tie-ins, and thestation might producethe infomercial itself,especially if it is a largestation. Smaller stationsusually buy Levy's cam-paigns as a completepackage, avoiding theexpense of collaboration.

However it is assem-bled, the campaign aimsfor "win -win": A prime -time special on breastcancer, Why Me?, won a10 rating for Seattle'sKOMO, helped sell14,000 self -exam homevideos (over the air and through a local drugstore), and sparkedpatient referrals to a sponsoring medical center. Similarinfomercials have dealt with "weekend athlete" health problems,stress among working women and a diet program sponsored bya local hospital.

Perhaps because great care is needed to construct a "win -win"package, most broadcast do-gooders are not eager to ventureonto the front lines of political controversy. Why risk alienatingany segment of the audience? This finds some confirmation in a1989 study by Essential Information, a research group foundedby Ralph Nader, which looked at issue -oriented public affairsprogramming at 217 randomly selected TV stations in 50 mar-kets. It found an average 51 percent decrease in such program-ming between 1979 and 1988. Locally produced public affairsprogramming decreased 39 percent.

These statistics, however, do not reflect the phenomenalgrowth of local news, often the primary promotional vehicle forcommunity affairs campaigns. While a bracing crusade for oragainst nuclear power is not likely to be tackled here, even soft -core advocacy can have a significant impact. For example, a vol-

unteer recruitment drive sponsored by KRON of San Franciscoboosted volunteer referrals by 35 percent and gave a strongboost to KRON's local news ratings. As part of its "ProjectHome Team" campaign, Seattle's KING enlisted more than1,000 volunteers and 100 businesses to renovate 40 units of adilapidated, crime -ridden apartment complex, bringing freshattention to the issue of affordable housing.

he "win -win" approach may in fact result in some losers,however. A station's dependence upon corporate sponsorscan limit, often in subtle ways, how issues are framed to thepublic. Lucinda L. Kindred, director, corporate develop-

ment for Salt Lake City's KUTV, admits that her station's cam-paign for prenatal care did not focus on "how women got preg-nant or whether they should be pregnant. Had you stepped backthree paces, you would've had a very controversial program."

Similarly, the many campaigns inspired by Earth Day typi-cally dealt with individuals' lifestyle habits, not with industrialpolluters, inadequate laws or law enforcement, or outspoken cit-

izens' groups. "That'shandled by the newsdepartment," shruggedone community affairsdirector.The new linkages

among community af-fairs, promotion, newsand sales may help sta-tion image -making, butprobing news coveragecould suffer. "As we getinto more corporatesponsorships," worriesDon Lowery, public af-fairs and editorial direc-tor of Boston's WHDH,"that's going to be amajor issue. You're goingto have to have stan-dards, and uphold them,or you're going to getburned."

Yet that infusion of bigcorporate dollars is al-lowing production qual-ity to soar, and is open-ing up desirable timeslots. In another era,says Paula Maes of Albu-querque's KOB, "Wenever would have been

able to get two hours of prime time for a program on childabuse." The show, When Touching Is A Crime, funded by a localutility, went on to win an Emmy.

More corporate money is available, explains Maes, becausecommunity service campaigns "reach into different kinds ofmoney in corporate budgets." A fast-food chain or supermarketmay have maxed out its TV advertising budget but still havemore to spend for philanthropy or community relations.

While some community affairs experts look back wistfully atthe times when they did not have to go on sales calls, othershave no regrets. Traditional community affairs "runs counter toall good laws of marketing-namely, reach and frequency," saysBob Klein of Klein &, a Los Angeles -based marketing and pro-motion consultancy. "PSAs have lots of reach but no frequency.That's no way to make an impact."

But there's a difference between penetrating into viewers' con-sciousness-which admittedly is more ambitious than the goalsof most conventional PSA campaigns-and actually changingthings in the community. "The real test and legacy of a publicservice project," says Leonard Zakim, executive director of the

CHANNELS / AUGUST 13,1990 19

_1.

KING's "Project Home Team" enlisted more than 1,000 volunteers and 100 busin

Anti -Defamation League in Boston, "is what happens when itgoes off the air." ADL's campaign, "A World of Difference," hasbeen so fully embraced by civic groups in some cities that it con-tinues four and five years later. In Seattle, between 30 and 40percent of the volunteers recruited for KING's housing renova-tion project have shown up to work on other projects sponsoredby the station.

esses.

If community affairs campaigns are having moreof an impact than ever before, there is also a riskthat they are becoming more bland and homoge-neous. After reviewing lots of look -alike communityservice entries to a national awards program, mostof them from Group W -campaign member stations,one judge complained of the growing "cookie -cutterapproach" to community affairs. "If it's at theexpense of local sensitivity and creativity, that'sbad," he says. "If it's all a station can afford to do,that's not so bad. But syndicated campaigns doimply a lack of touch, and an unwillingness to serveunique community needs."

There seems little doubt that "win -win" commu-nity affairs will flourish and expand in the 1990s.Who doesn't like an upbeat tale of humanity tri-umphant? Whether the new community affairs willtake genuine risks, wade into controversy or bringa critical eye to uniquely local concerns is anothermatter entirely.

The final touchstone, as always, will be whether astation can do well, not merely do good. "I'm suspicious of any-thing that isn't in the self-interest of the business," confessesstation consultant Klein. "You don't do things just because itmight be nice."

Contributing editor David Bollier last wrote about TV public-service campaigns.

The Save -the -Babies RivalryConsultant Jerry Wishnow is understandably proud ofthe achievements of his "Beautiful Babies: Right fromthe Start" campaign, a program developed with WRC-

TV that helped reduce infant deaths and low birth weights inWashington, D.C. (During the campaign's debut in 1986-87,Washington's infant -mortality rate dropped from 24 to 19.6per 1,000.) Wishnow's humanitarian pride turned to competi-tive rage, however, when he discovered that Salt Lake City'sKUTV had not only developed asimilar project but was syndicat-ing it nationwide-for consider-ably less money.

KUTV's project, "Baby YourBaby," does have goals and meth-ods similar to those in Wishnow'scampaign. As an inducement forwomen to visit clinics, for exam-ple, both use coupon booklets thatgive discounts on baby merchan-dise. The similarities end there,insists KUTV general counsel PatShays. "Ours is run by local com-munity health-care people andtelevision. His is run by JerryWishnow. Ours is more coopera-tive, creative and hands-on. His is a turnkey operation."

The KUTV project originated, in fact, with the UtahDepartment of Health, which put out a request for proposalsand put up a portion of the funds through the federal Medi-caid program. KUTV's proposal won, and the station laterdecided to syndicate the campaign.

Since roughly one -quarter of the nation's babies are paidfor by Medicaid, the federal Health Care Financing Adminis-tration was eager to spread the word about a project that cuthealth-care costs-and provide half -funding to other eligible

-Fighting for custody: KUTV's "Baby Your Baby" project.

campaigns. Blue Cross/Blue Shield, which had been acosponsor of Wishnow's D.C. campaign, was also thrilled toalert state Blue Cross organizations to both projects.

But KUTV's fee certainly made its campaign more attrac-tive. Wishnow's project reportedly cost WBBM-TV ofChicago in the high six -figures, while KUTV's would sell fora five -figure sum in that market, says Shays. (WBBMrefused to confirm the figure, and Wishnow says it's inaccu-

rate. He says stations pay him an18 -percent commission on grosssponsorship sales, plus a fee dur-ing the development process-inWBBM's case, probably about$50,000.) So far, KUTV has sold"Baby Your Baby" to TV stationsand health departments in sevenstates.When Wishnow learned of

KUTV's campaign, he accusedthe station of stealing his idea,according to Shays, and began"saying negative things about usto Blue Cross/Blue Shield" andothers. Shays says Wishnow sentthe station two "legally threaten-

ing letters." Since an idea cannot be copyrighted-only spe-cific creative expression-the station sought a judgment infederal court that it was not infringing upon Wishnow'srights. Settlement negotiations between Wishnow and thestation have dragged on for more than a year.

Wishnow declines to say much about the contretempsexcept that the proliferation of imitators is "a sad situation,"adding, "I'm in a tricky position right now. [But] I'm totallyin the right." Shays is less combative: "It's unseemly thatpeople would sue over how to prevent infant mortality." D.B.


sieAng isefifinspaqiu

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Television's topGeneral Motors

Procter & Gamble

Philip Morris

McDonald's Corp.

Ford Auto Dealers Assn.

Kohlberg Kravis Roberts

Unilever

Sears, Roebuck

Anheuser-Busch

American Home Products

Johnson & Johnson

PepsiCo

Source: BAR

AT&T

Grand Metropolitan

General Mills

Chrysler Corp.

Eastman Kodak

Bristol-Myers

Toyota

Quaker Oats

Honda

Warner-Lambert

Coca-Cola

Nestle

"You probably thought we'd list stations..."

"OK. Here areNew York

INWORMCA

Broadcasting

Boston

WFXTBoston CelticsBroadcasting

Detroit

WKBDCox Enterprises

Sacramento

KTXLRenaissance

Communications

Charlotte

WJZYCapitol

Broadcasting

Los Angeles Chicago

KTTV WMAQFox Television NBC O&O

Stations

Pittsburgh

WPGHRenaissance

Communications

Portland

KPTV KOLDChris Craft

San Antonio Cincinnati

KABB WXIXRiver CityTelevision

Hartford Albuquerque

WVIT KOATViacom Pulitzer

Proadcasting Publishing

Indianapolis

WTTVCapitol

Broadcasting

Tucson

News PressGazette

MalriteCommunications

San Francisco

KTVUCox Enterprises

St. Louis

KMOVViacom

Broadcasting

Miami

WDZLRenaissance

Communications

Raleigh

WRALCapitol

Broadcasting

San Diego

XETVBay CitiesTelevision

Igoo cl P Coovmurdeetions All Rights Reser ved

the stations:'

MARRIEDio 10411/4

CiVs8*1)

The face of television has changed.

Columbia Pictures TelevisionA tillti t,f t dumbia Pitionts Entertainment. Inc

IN FOCUSTELEVISION'S TOP EXECUTIVES

InsideIN FOCUS

This special In Focussection on Televi-sion's Top Executivesis a companion pieceto Channels' annualAchievers issue (lune2S), which provideda financial guide tothe top 80 publiclytraded TV compa-nies. Behind everybottom line is a chiefexecutive's vision forthe company, andthis section openswith in-depth pro-files of four relativelylow -profile leadersof highly successfulcompanies. We thenoffer capsule sum-maries of the biogra-phies and strategiesof the top executivesat 72 other publiccompanies. Notethat in some cases,the executives pro-filed are not CEOs,but are the high-est executive inthe company withdirect responsibilityfor leading its TVoperations.

LEADERS OFTHE PACK

Four executives whose distinctive visionshave made a difference.

Ward HueyA.R. Belo Corp.

Ward Huey likes a good joke, but the sight of a Houstonsportscaster with his face painted blue and whitebefore an Oilers football game was not his idea of

humor. After all, Huey is president of the broadcast division ofA.H. Belo Corp., a company that prides itself on serious jour-nalistic roots winding back to the 1840s with the Dallas Morn-ing News. There was little doubt that the KHOUsportscaster-and the anchor who moonlighted with a coun-try-and-western band on weekends-would not last long afterBelo acquired the Houston station in 1984.

Since those days at KHOU, "We have gone from camp tocredibility," Huey has told his corporate v.p. of news, MartyHaag. And the CBS affiliate, a critical piece of Belo's $501 mil-lion purchase of the Corinthian stations from Dun & Brad-street, has gone from a distant third in the ratings to numbertwo overall. But credibility was not a foregone conclusion.

For while Huey was inclined to follow his conviction that solidnews operations will strengthen a station's identity and perfor-mance, he had inherited a station group rtm on the cheap andabout to suffer an overheated Southwestern economy. Over-production of oil and overbuilding of real estate combined todeepen the Texas bust when demand weakened in the mid -'80s.

After the 1984 D&B acquisition, Huey was responsible forthree stations in the Oil Patch. KHOU and WFAA in Dallas -Fort Worth, the ABC affiliate owned by Belo since the 1940s,accounted for two-thirds of the company's revenues. The dealalso included KOTV in Tulsa, Okla., KXTV in Sacramento andWVEC in Norfolk, Va. In the process, Huey moved into themanagerial ranks of a station group with two major -marketand three secondary -market stations. It was a time thatseemed full of opportunity-the only problem was the souringeconomy.

Almost from the beginning, Huey's mind was on the need to



Ward L Huey, 52, vicechairman of the boardand president of thebroadcast division atA.H. Belo Corporationsince 1987. The division

includes stations in

Texas, California, Vir-ginia and Oklahoma.First elected to theboard in 1982. Namedvice president and

general manager of allBelo broadcast

properties in 1975.

Joined Belo's WFAA-TV

in 1960. Named stationmanager, 1972, vice

president, 1973.

Southern Methodist

University

pump up spending, but he soon felt compelled to call for salaryfreezes, layoffs and other financial controls instead; plans fornew transmitter towers in Dallas and Tulsa and upgrading pro-duction equipment would have to be put on hold. "Our stylewas very different from Dun & Bradstreet, more decentral-ized, with stronger news franchises," says the 52 -year -oldHuey, who joined Belo 30 years ago as a camera operator. "Thefrustration we felt was wanting to implement this philosophyin an environment that was economically very soft and whereinvestment had to be curtailed to a much greater extent thanwe had wanted."

Based in Dallas, Huey spent a good deal of time on the road,talking to his managers, exploring alternate ways to developtheir markets, urging them to meet with their employees toprovide an accounting of the economic circumstances. "At atime like that, morale is a critical issue," Huey says. "What wewere struggling with was not to tighten down on the wrongthings." Rebuilding news operations and acquiring new syndi-cated programming, he felt, could not be delayed.

Huey, who held various sales and marketing jobs at WFAAbefore his promotion to station manager in 1972, was namedvice president and general manager of all Belo broadcast prop-erties in 1975. He was elected vice chairman of the Belo boardand president of the broadcast division in 1987. Years before hehad passed muster with Marty Haag, who was hired by Hueyas WFAA news director in 1973. Haag wanted the station to doconsumer reporting and name names, acknowledging to Hueythat the station could lose advertisers in the process. Hueywent to management and pushed hard for it, Haag says, andwon approval.

But Huey's commitment to news was given the acid test fouryears ago. Reporters at WFAA had spent six weeks following alead raising new charges against Southern Methodist Univer-sity's athletic program. SMU was already on probation withthe NCAA and additional accusations would put the school'sfootball program in jeopardy. Dave Lane, the general managerof WFAA, hired by Huey for WFAA local sales in 1967 and aclose friend, met with him and Marty Haag to discuss the newsdepartment's findings.

Huey is a 1960 SMU graduate, a board member of the Cotton

Bowl Council and SMU's Meadows Schoolof the Arts, and a former member of theSMU Alumni Association board. Thecharges were no small matter in a townwhere SMU football is more akin to reli-gion than sport. "He knew it would meanthey would lose their football status,"recalls Lane. "Literally, I could see tears inhis eyes." But Huey was convinced that thestation had the goods and did not stand inthe news department's way. After thefirestorm broke, says Lane, Huey heardfrom alums, many of whom are Dallasmovers and shakers. 'Ward did have a lotof tough times, with people claiming thatwe were unfair. But the bottom line was wewere right and they did go on probation."

During the past year, as the Texas econ-omy has begun to rebound, Huey has spent$6.1 million for a new transmitter in Dallas,a satellite newsgathering truck in Houstonand upgrading of other newsroom equip-ment. After several flat years, WFAAincreased its revenues by 16 percent to$73.3 million in 1989 from 1987 and KHOU

revenues increased by 9 percent to $46 million, according toestimates from the securities firm Donaldson, Lufkin & Jen-rette. With increased operating costs, cash -flow marginsremain slightly down from 1987.

The focus on news has pushed the ratings for news to num-ber one or number two at all the Belo stations except KHOUin Houston, and deepened Huey's interest in original pro-gramming. Like many station -group heads, he believes theintensified competition with other media and the explosion ofmedia outlets provide a rich opportunity to develop new pro-gramming. "The more crowded the broadcast sky, the morecompetitive the environment becomes," Huey says, "the morebroadcasters are going to be compelled and challenged todevelop programming."

Last year Belo took its 25 -year -old, Dallas -produced kids'show, Mr. Peppermint, and sold it in 108 markets for first -runsyndication. Regionally, WFANs Texas Country Reporter, a"Charles Kuralt-type show," has been sold in 22 Southwesternmarkets. And Belo is looking this year to syndicate two showsproduced at KXTV, its CBS affiliate in Sacramento: Scratch, anissues show hosted by and geared for high schoolers, andPulse, a medical magazine show.

In what may become its most substantial programming ven-ture, Belo entered into a production agreement last fall withKansas City -based Universal Press Syndicate to develop pro-gramming based on UPS's roster of comics and columnists. InMarch, Huey, Belo president and chief operating officer JamesSheehan and their partners at UPS initiated their first project,an animated strip based on Tank McNamara for both prime -time specials and interstitial interviews for network sportsevents. The animation would be created at the California stu-dios of Film Roman. UPS went with Belo rather than moreobvious candidates in Hollywood for reasons of size and fit.'We have had some unhappy affiliations with very big compa-nies," reports Robert Duffy, v.p. of sales for UPS. "It mademore sense to go with a company that thought the way we didand is at roughly the same stage of development."Beyond the obvious financial potential that such ventures

may provide Belo, they also take Huey in a direction he partic-ularly enjoys. "He's a broadcaster and interested in program -

CHANNELS / AUGUST 13, 1990 27

%Tails Does ItA Nation?

Cicely Blair James Earl SallyTyson Underwood Jones Kirkland

A V EAWorld Premiere

Of Devastating Power."Burn, baby burn!" That was the battle cry as seven daysof riots and destruction raged in the Watts district of LosAngeles. It terrified a nation in August, 1965. It will rivetyour viewers in August, 1990.

TNT's premiere production of Heat Wave hasbrought together a story and a cast that has majoraudience appeal by any standards.

As with all our original productions, we seek per-formers that are proven draws, as well as talented risingstars. We look for interesting, issue -oriented scripts andthe strongest production teams. Then we provide themwith the commitment and the resources to do the finestwork possible, both creatively and commercially. Whichmeans we'll look good to you, and you'll look good toyour subscribers.

The result is, and will continue to be, exclusivepro that delivers more viewers and morelo ad revenues.

Original programming at TNTis just one example of how we areleading the new age of basic.

©1990 Rimer Pictures. Inc

EXCLUSIVE

PREMIERE


ming ideas and not just a total preoccu-pation with operating these stations asmoney-makers," notes Marty Haag, whois also based in Dallas at WFAA. "One ofthe frustrating things for him in recentyears is he's been so involved at upperlevels making presentations to potentialinvestors or people from Wall Street.Sometimes he comes over here just towalk the halls. He says he misses this;this is where the fun is."

Huey has begun to spend more of histime talking to producers and syndica-tors to stimulate program development.His primary concern, he says, is withproducing for Belo stations, but he alsoenvisions expanding more into producingfor cable, maybe satellite and for themajor networks. He's also started torealize the potential of foreign markets."You can't help but see the opportunitiesfor horizontal and vertical integration."

While the future may increasingly takehim into the realm of production, Huey isstill chiefly involved with counseling hisstation managers. He has placed WFANs Dave Lane in Sacra-mento as acting general manager until he decides on a newg.m. there. And while the economies of Dallas and Houstonappear to be turning around, Tulsa still lags behind, causingheadaches at KOTV In Norfolk, which experienced a go-go

-'80s due to the Reagan administration's mili-tary buildup, the next few years are likely to be more trying.

Well-known as quick with the one-liners-once asked todescribe his boss, Huey said, "He's the sort of guy who entersa room and flowers wilt"-Huey can be expected to handle apotential downturn at WVEC in Norfolk with a sense ofhumor. Huey himself anticipates continued, albeit slower,growth there. If things go wrong, however, one should look forhim in the back room of his Dallas home. That's where the one-time aspiring jazz musician goes to pound his drum skins whenhe wants to unwind. STEVEN BESCHLOSS

Brian GrazerImagine FilmsEntertainment Inc.

As he tells it, Brian Grazer, hopelessly miscast as a first -year University of Southern California law student,was studying in his Santa Monica, Calif., apartment one

Friday morning in 1973 when through the screen door he over-heard other students in his building discussing their "cushy"law -clerk jobs in Warner Bros.' motion -picture business affairsdepartment. Grazer picked up the phone, called the boss,whose name his neighbors had mentioned, and got an appoint-ment for 3 P.M. that afternoon. By 3:30 P.M. he had a job.

Grazer never finished his first semester of law school, choos-ing instead to leverage his new job to the hilt. Frequently dis-patched with papers for agents and producers, he beganinsisting to secretaries that he had to make delivery in person.Once inside the executive suites, Grazer would ask questions

Brian Grazer, 38, co-chairman,co-CE0 of Imagine FilmsEntertainment. Producer oftelevision programming andfeature films.

Began career as a producer

of television projects withEdgar J. Sherick and Daniel

Blatt. Spent six years at

Paramount in the developmentand production of televisionpilots and motion pictures

before co-founding Imaginewith Ron Howard in 1986.

Graduated from USC in1973, BS.

about how Hollywood worked, usually getting answers, some-times spending ten or 15 minutes with the likes of agent JeffBerg, now chairman and chief executive of International Cre-ative Management, and producer Mel Brooks. Soon he'dtaken over the temporarily empty office of a fired senior vicepresident who had not yet been replaced. Grazer talked a para-legal and secretary into taking his messages and helping himresearch major industry figures, whom he then called toarrange appointments. He says he met with Jules Stein, thefounder of MCA, Lew Wasserman, its current chairman, Sid-ney J. Sheinberg, its current president, the writers BuckHenry and William Peter Blatty and producer David Picker,among others.

Such stories lend insight into Grazer's rise and help describethe management style with which he now runs Imagine FilmsEntertainment Inc., a growing small producer of TV programsand feature films, including last year's hit Parenthood. Grazershares the titles of co-founder, co-chairman and co -chief execu-tive officer with Ron Howard, known for his roles as Opie Tay-lor in The Andy Griffith Show, and Richie Cunningham inHappy Days, but who now also lists such directorial credits asthe films Parenthood, Splash and Cocoon. lbgether they own59.2 percent of Imagine. With Howard frequently off directing,however, Grazer is left in day-to-day control of the company,where he relies heavily on dogged aggressiveness and an abil-ity to get other people to foot the bill for his dreams. A seniormanagement team handles business affairs while Grazer con-centrates on the creative side.

"He has this theory that movies get made as a result ofenergy," explains David Friendly, Imagine's senior vice presi-dent for motion pictures, who says he fields 7 A.M. telephonecalls from Grazer nearly every day of the year. "He is relent-less. When you play tennis [with Brian], no matter how manytimes you hit the ball at him, it comes back." Recalls DeanneBarkley, a former NBC executive who helped Grazer get hisstart in TV: "I bet he never sleeps. He's one of those over -elec-trified people." For his part, Grazer admits, "I am an obses-sive -compulsive person-or, a compulsive -obsessive person."

At the beginning of Grazer's career, it was Warner Bros. thatpaid the bills. Now it's MCA and Viacom's Showtime pay-cable


This announcement is under no circumstances

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network, which have made production and distribution com-mitments to Imagine of $500 million and $150 million respec-tively. The structure of the deals leaves Imagine with little risk,but ample opportunity to profit.

At a time when small Hollywood production companies face achoice between the slim odds of surviving on their own or sur-rendering most of their freedom and profits to the large stu-dios that have become Hollywood's bankers, Imagine seems tohave kept an unusual degree of creative independence whilebankrolling a promising future. Grazer frequently consultswith MCA, but it's mostly to build good will; contractually, theonly approval he needs is on movie concepts.

"The company's positioned itself very well to succeed in tele-vision," says Christopher Dixon, an entertainment industryanalyst with Kidder, Peabody. "If the story in the televisionindustry in the 1980s was to acquire libraries," he says, "thestory of the 1990s will be to identify companies that will be ableto build new libraries." Among the most promising, he says,are Carsey Werner, Castle Rock Entertainment and Imagine.

Imagine's television efforts appear more promising now thanat any point since it was formed in 1985, or went public a yearlater. In an unusual deal, without a pilot, NBC committed tothe full license fees for 13 episodes of a weekly half-hour ver-sion of Parenthood for fall. In addition, MCA says it has signedmore than 100 stations to begin airing My Talk Show, a syndi-cated half-hour late -night strip created by Imagine and SecondCity Entertainment, an improvisational comedy company ofwhich Imagine's TV arm-a limited partnership withMCA-owns 50 percent. The show's premise is that a majorTV syndicator (MCA) has discovered and decided to distributea local -access talk show which takes place in a divorcedwoman's living room. Imagine is also producing a two-hourmovie for TNT and working on pilots for the HA! cable chan-nel and the Fox network.

How much personal credit Grazer deserves for the com-pany's fortunes remains unclear. First, only this fall will tellwhether Imagine's two new series will break the six -episodebarrier it hit with Knight & Daye on NBC last winter, Poisonfor Showtime in 1988 and Take Five on CBS in 1987. Imagineas a whole posted its first -ever profit of nearly $606,000 in fis-cal '89 on the strength of its movies, Parenthood, The 'Burbsand The Dream Team.

Second, Grazer is still trying to establish some stability inprogram production, having gone through three heads of TV inas many years. The latest, Andrew Susskind, started just twomonths ago. His predecessor, Robert Harris, Imagine's high-est -paid executive behind Grazer and Howard, departed understrained conditions. Neither Harris, a former senior v.p. of cur-rent programming at Universal Television, nor Imagine execu-tives will discuss the divorce, citing a contractual provision oftheir settlement requiring secrecy. But others close to the situ-ation suggest two points of friction. One was a clash of stylesbetween Grazer's aggressiveness and Harris' more relaxedmanner. Another was a difference in priorities. To get his footin the door to make movies, Harris agreed to build Imagine'sTV operation, even though his heart wasn't in it. He took thedeal because MCA, which owns 24.8 percent of Imagine'sstock, wouldn't let him out of his contract to go anywhere else.

Grazer's first break in television came while working at thenow -defunct Uflond Agency, the tiny talent agency he joinedafter about a year and a half at Warner Bros. He'd talked hisway into the office of Deanne Barkley, then an NBC program-ming executive, to sell the project of a writer he had in tow. "Abird she owned fell over and died in the middle of my pitch,"Grazer recalls. The writer took it as an omen and fled, reduc-

ing Barkley and Grazer to uncontrollable laughter and produc-ing an instant friendship. "It was then that I realized he was awinner," she says. "He didn't care what people thought of him."Grazer seized the opportunity to pitch Barkley on his own slewof story ideas, all of which, he says, she bought. While nonecame to fruition, he used those commitments and Barkley'srecommendation to land a job with producer Edgar J. Scher-ick. Barkley then took a chance by approving the 24-year-old'sfirst TV movie, Zuma Beach, a bathing -suit picture written bysomeone Grazer was championing, then -unknown John Car-penter, and starring two undiscovered actresses, SuzanneSomers and Tanya Roberts.

Grazer tried to make series, but found that the Big Threenetworks' "arrogance didn't work well with my personality."At the same time, he says he maintained a discipline of meet-ing at least three new people a week who were writers, pro-ducers, directors or executives, sometimes simply by yellingto passersby from the window of his third -story Paramountoffice. One passerby, he says, was Brandon Tartikoff, NBC'schief programmer. "He yelled back, 'If you jump, I'll give youa series commitment,' " says Grazer. "I was moving towardthe ledge." Another person he saw going by and later tele-phoned was Howard, then acting in Happy Days. Grazer hadheard a lot about Howard's interest in directing from Barkley.The two teamed to begin creating and making movies, includ-ing Night Shift and Splash.

Today, with more relationships and money, Grazer says, "I'mnot as noisy." But in those days, "I was bordering on beingobnoxious. I was impervious to rejection. My [four -year -old]son is exactly like that. He will ask the same question over andover again, but he will modify it a little each time, which iswhat I do when I really want something-which is often." Howdoes Grazer feel when his son does this? The father admits it'sannoying, but he says he and his wife reinforce the behavioranyway because they value curiosity.

"In this business," says the elder Grazer, "you're constantlyexposed to people and things that want to break down yourconfidence and energy because they want to get you into theirrhythm, so I'm constantly working to be a strong person."That includes making notes to himself in his Filofax, he says,like "Love," in the middle of reminders to do things like talk toTom Hanks about an Eric Bogosian idea. "I try to have posi-tive things in my consciousness and my aura." NEAL Kocx

Hobert RogersTCA Cable TV Inc.

Try to get Robert Rogers to talk about himself. Ask himabout TCA Cable TV Inc., the 36 -year -old cable com-pany that he and his wife literally built themselves, and

Rogers will chat freely. Dig deeper for some personal tidbits,anecdotes about his role as a pioneer in the Wild West days ofcable, and he'll do the verbal equivalent of riding off into thesunset.

"I prefer a low profile, I guess, I don't know," demurs the64 -year -old Texan. Reports one TCA employee, "At work, it'sstrictly business. He has little time for small talk."

That's too bad, because Rogers has a story to tell. He's ararity in the cable industry today, one of the last of a breed.The self-made men who wired remote rural towns in the1950s in order to bring Milton Berle and Lucy into far-flunghomes have largely given way to conglomerates whose inter-


This announcement appears as a matter of record only.

TCS Television Partners, L.P.

$35,000,000 Senior Notes due 1997

$10,000,000 Subordinated Notes due 1997

Financing related to the acquisition of

WRBL-TV Columbus, Georgia

WFWO-TV Terre Haute, Indiana

KQTV-TV St. Joseph, Missouri

We acted as financial advisorin connection with the private placement

of these securities to institutional investors.

Merrill Lynch Capital MarketsJune 1990

TELEVISION'S TOP EXECUTIVES

ests range from movie theaters to broadcast stations to mag-azines. Not Rogers and TCA. Besides a 39.6 percent interestin TCA and ownership of a small investment company,Rogers is like that copy -machine company: just cable andonly cable. In an industry that's intimate with red ink,Rogers' company is one of a handful that has reported netprofits for each of the last five years.

"We only want to do one thing and do it well," he says.Based in the East Texas city of Tyler, TCA has prospered

even though most of its franchise towns have been wracked bythe collapse in oil and gas prices. TCA reports positive earn-ings rather than just cash flow, meaning it makes money evenafter it pays off long-term debts. In 1989, it reported earningsof $10.8 million. Rogers has done this by taking the conserve -

starting them from scratch. In the early days, says his sonRandall-who manages TCAs Bryan/College Station, Texas,system-Rogers climbed poles to string together what istoday a 420,000 subscriber MSO with 53 affiliates concen-trated in Texas, Louisiana and Arkansas.

Rogers built his second system in Springdale, Ark., in 1958,charging $4 to deliver five broadcast signals. The first systemowned by TCAs forerunner was bought in 1965-all Rogers'properties eventually became part of TCA after it went publicand took its current name in 1982-and Rogers graduallybought more, specializing in turning around troubled systems.

"We were looking for classic markets away from big cities.Big cities had so many problems with franchising and politics.Life is too short. We bought only if it was a good town. You

can throw away equipment, but you can'tthrow away a town," Rogers says.

Rogers has always been more comfort-able with less -populated places. Born tomodest means in Buckner, Mo., a town ofabout 1,000 near Independence, Rogersdropped out of junior college near the endof World War II to enter the Navy, wherehe learned electronics. After the war, hehad little money, but, according to his sonRandall, managed to borrow and talk hisway into a small chain of drive-in movietheaters.

"The greatest skill he has is in talkingpeople into lending him money atfavorable terms. He'd buy a system withnothing down and say, We'll pay you backwhen . . .' He'd stay a step ahead of credi-tors," Randall says.

Rogers bought into cable when hedecided TVs, not drive-ins, were the waveof the future. He was not unlike othercable pioneers, many of whom were engi-neers rather than business majors. "Mostof the big boys stayed out because it was

financially risky," Randall says.Rogers stayed with small operations, always careful to keep

his long-term debts low enough-generally below 3:1 debt -tocash flow-to pay off through cash flow rather than sellingassets. TCA's largest system, in Lafayette, La., has 42,000subs. That strategy's not likely to change. While Rogers saysTCA will keep expanding, mainly by buying systems adjacentto its current ones, the company will never look like Tele-Communications Inc.

"We feel more comfortable with that. Besides, that hugeinterest payment is not bringing people any better televisionservice. Some of the worst things that can happen are [lever-aged buy outs] where you pay too much for a company andyou can't afford to give service any more. That hurts businessand demoralizes employees," Rogers says.

Lately, TCA has borrowed a bit more than usual. Lastyear's purchase of five Cooke Cablevision systems with86,000 subs for $185 million, or $2,150 a sub, upped TCA'sdebt/cash flow ratio from 1.4:1 to 4:1, still far below cable -industry norms, Rogers says. "It's much more than we'veever had, but we're paying it down. Our debt is half or two-thirds of what most other cable companies have."

Despite its low debt, TCA is not among Wall Street'sfavorite media investments. Analysts say the stock is tooexpensive compared to its private market value.

"The company does not have the upside potential of a more

Robert M. Rogers, 64,

chairman, president and

chief executive officer of

TCA Cable TV Inc. Owns

51 systems and manages

two others totaling420,000 subscribers inTexas, Arkansas,

Louisiana, New Mexico,Mississippi and Idaho.

Acquired first system inSulphur Springs, Texas,

in 1954.

Owner, operator of drive-in movie theaters aroundMissouri, late 1940s -

late 1950s.

U.S. Navy

Trustee, Baylor University

tive route to growth and avoiding heavily leveraged deals."They really pay attention to the details," says an admiring

analyst who prefers anonymity. "They don't have a nationalvision or a great scheme for cable consolidation or verticallyintegrating companies. What they have is a utility -like busi-ness that is run with a very close ear to the ground." It maylack glamour, but it works.

Analysts, colleagues and Rogers himself use words like"plain vanilla," "close-knit" and "very loyal" to describe thecorporate culture he has molded at TCA. His sons-three ofwhom are TCA managers-and colleagues describe a driven,shrewd, private but friendly man who inspires great loyalty.

"I really like Bob. There's a lot of sharp guys in the cablebusiness, but there aren't a lot of nice guys. Bob may put peo-ple off from time to time," the analyst says. "They don'tbelieve anybody is as plain as he purports to be."

Even after 36 years in the business, those close to Rogerssay he brings an intense passion to the intricacies of runningan MSO. "What he enjoys most is going to system offices andsitting down and talking one on one with technicians and[customer service reps] and just asking them about the busi-ness. He still enjoys the basics of the business," says BradHaile, an ex-TCA manager.

Starting with an 83 -subscriber "junker" system that heacquired in Sulphur Springs, Texas, in 1954, Rogers gradu-ally built TCA either by buying near -bankrupt systems or



highly leveraged company," says KenGoldman, an analyst with HanifenImhoff Inc. "Bob Rogers doesn't careheavily about that kind of upside. Hewants a more conservatively managedand steady [growth]. Basically he's cre-ated his company in his own image."

Analysts see little room for growth atTCA. They note its systems are classicheavily penetrated ones in economicallydepressed towns. Goldman projectsinternal subscriber growth at 3 percent,roughly half the industry average.

TCA does not dispute that figure, butexecutive v.p. and COO Fred Nicholswould rather emphasize the company'sannual internal cash -flow growth of 12 to15 percent. With revenue per sub at$23-$4 below the industry average-there's plenty of room to grow. Tieringand sluggish pay penetration havecurbed revenues, Goldman notes.

Rogers acknowledges all of that, butsays the numbers are growing. "[Rev-enue per sub] is not as low as it was."He'd prefer analysts focus on "a dependable cash flow, a mod-erate dependable growth, low debt, a clean operation."

Even analysts who don't recommend the stock praiseRogers' management style, which is described as a sort ofbenevolent omnipresence. "Bob Rogers is very hands on. . . .

He does things like reading complaints that come into hisoffice from customers. He likes to keep his finger on the pulse,[but] he lets his managers in the field manage," Goldman says.

Rogers suffered a heart attack two years ago, which thoseclose to him say hasn't slowed him down, only changed hisfocus. "He's a very driven guy," says an employee. While theillness did seem to change Rogers' attitude, the employeecontinues, he doesn't dwell on his health.

Rogers is showing signs of sitting back and smelling theroses. His family says he's taking more time to pursue hispassions of mountain climbing, hiking and traveling. "It [theheart attack] helped him get in shape. He started taking careof himself a little better," Randall says. "He's the kind of guywho likes to save all his energy for two vacations a year andgo on ten -mile hikes without getting in shape in advance."

But with reregulation and telco and DBS rivals on the hori-zon, is Rogers getting tired of the fight, and thinking ofretiring? Not a chance. `We're still bullish on the industry. Itwon't be growing as fast as it had in the past but it will stillbe growing. We've had [competition] before and we can han-dle it." ANDREW GROSSMAN

James DowdleTribuneBroadcasting Co.

/n 1985, when Tribune Co. bought Los Angeles independentKTLA from Kohlberg Kravis Roberts & Co. for $510 mil-lion, industry observers generally agreed that Tribune got

a good deal. Then they settled back and waited for the heads to

James C. Dawdle, 56,

president and CEO of

Tribune Broadcasting Co. since

1981; director,Tribune Co. Runs stations in sev-

eral major cities,Tribune EntertainmentCo., Grant/Tribune

Productions.

Vice president andgeneral manager, WTOG-TV

Tampa, 1973-81.

National sales manager, KSTP-TV

St. Paul -Minneapolis, 1964-73,

KWTV Oklahoma City, 1962-64.

University of Notre Dame, BS,

accounting

U.S. Marines

roll. Steve Bell, KTLA's general manager, had a reputation asan experienced, canny competitor who put together solid localnews and programming. His then second -in -command, MichaelEigner, was considered a valuable executive ready to managehis own station. Nonetheless, Bell and Eigner were presumeddoomed to the traditional fate of station management after asale: a short grace period, then the ax.

"If you spend that kind of money on a property, you have tomake the investment work out, and you just assume that theywant their own people in there to avoid the friction, to ensureeverybody's got the same ideas," says an executive fromanother Los Angeles station.

That's not what happened, however, because that's not howJim Dowdle does business. Dowdle, president and chief execu-tive officer of Tribune Broadcasting, is "very smart and atough competitor, but perhaps more impressive is that he is theultimate gentleman," says Al DeVaney, vice president and gen-eral manager of WPWR in Chicago and a longtime Tribunecompetitor. "Jim is reminiscent of a kinder, gentler broadcast-ing industry."

Instead of replacing Bell, Dowdle handed him the ball. "We'dbeen owned by investment bankers," recalls Bell, "and whileshort-term we were looking great, for long-term some of thelife had been squeezed out of us-discretionary [money] wasall going to the bottom line. In this competitive market, anyweakness met with competitive strength from other stations.There were investments that needed to be made.

"Jim made decisions quickly: program investments, moneyfor promotion-all the basics needed to keep on top in L.A. Hestaked us. It allowed us to bounce back to the top of the mar-ket so fast that even the competition said, `Gee, we neverthought you'd come back so quickly."

That was typical Dowdle, according to those who workwith, and compete against, him. No power plays, no machina-tions-just steady support for local management. Dowdle runsTribune's six television stations, four radio outlets, TribuneEntertainment, Grant/Tribune Productions, numerousco -ventures and other arrangements-and the Chicago CubsNational League baseball team. Yet despite the prestige andpower, "he's one of the few presidents of a major broadcast


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group who hasn't forgotten what it was like to run a station,"Bell says. "He's never forgotten what it's like to be in thetrenches."

Dowdle's own description of his style is self-effacing. "I try totreat people the way I've been treated through the years. I wasalways given authority and responsibility. I think we haveexcellent general managers-activists-they take things ontheir own, they assume responsibility."

He makes it sound as though things just happened, as thoughJim Dowdle stepped to the helm of Tribune Broadcasting,found everything running smoothly, and settled in for the ride.It might seem easy to conclude that with all Tribune'sresources and holdings, the broadcast and entertainment divi-sion would practically run itself. As one competitor says, "Whowouldn't do well, with those stations, in those markets? Withthose syndicated shows?"

Dowdle's low-key, decentralized style is deceiving. The cur-rent business didn't just happen. Dowdle made it happen,according to Mel Smith, vice president of programming forTribune Entertainment. "You have to look at what we are,and how we got here," says Smith. "Six, seven years ago wewere a station group with a small syndication arm. Now wehave ventures with foreign companies. We're into syndicationin a major way, and we're in coproductions for miniseries likeVoyage of Terror that will be sold all over the world. We'vegrown enormously-steady, straightforward growth thatrequired leadership and vision. The horizontal diversificationhas been crucial, and that's all Jim's doing: He planned for it,he rolled it out. He had a deliberate plan to recognize trends.He saw what was coming, even when nobody else did, and hegot us ready for

Dowdle says such decisions were outgrowths of his determi-nation to get Tribune involved in program development. It wasimportant for the company to grow "in capabilities, not justbottom line. If not, too big a gap can develop between thebiggest players and the rest, and the smaller ones lose controlover their own destiny.

"We already have some areas out of our control, such as howwhat is happening in Washington will affect us. So we have totake advantage of those things that are in our control, or thatcan be in our control. Among those are effective managing,production, acquisition, [and] marketing [of] new forms [ofprogramming]."

Dowdle has gained an industry -wide reputation as a vision-ary. While some of his ideas appear obvious in retrospect,many were surprising at the time. For instance, it was Dow-dle's idea to seek joint ventures with Turner BroadcastingSystems Inc. While Ted Turner looks like a winner now, theindustry consensus was different when Dowdle first voiced histhoughts. "Several years ago Jim said that Ted had vision. Butback then, everybody else was saying that Turner was crazy,"Smith says. In April, Tribune signed a ten-year deal withTurner under which Tribune stations become CNN affiliates;the companies will also coproduce documentaries, news spe-cials and miniseries.

Dowdle had a similarly contrarian opinion of Geraldo Rivera.After being fired by ABC, Rivera pitched Tribune the bizarreidea of a syndicated live special on the opening of Al Capone'svault. The show was panned by critics, lampooned by comedi-ans-and became the highest -rated syndicated special in his-tory. The relationship spawned a successful talk show. "Jim hadthe vision to put Gerald() into a daytime show," Bell says. "Itworked, but at the time it was far from obvious."

Certain Dowdle predictions have been downright eerie. Morethan five years ago, he told Smith that he expected to see a


Japanese company buy a major HollywSmith expressed doubt, Dowdle insisted isaid it "would be someone like Sony," Smi

Dowdle took the minority view on synmuch to the dismay of other independenthat judgment, too, is being borne out.Channels last year, Dowdle said the reincated exclusivity would result in manybeing dropped from outlying cable systependents have indeed been dropped, andthe audience increases independentsexpected from syndex have not beenrealized.

Some victories have resulted lessfrom vision than from old-fashionedcost analysis. When other stations wentCosby -crazy, Dowdle and his stationmanagers picked cheaper shows toschedule against the Huxtables. KTLAoften beats Cosby with Charles inCharge. WGN in Chicago does thesame with Cheers. "That sort of analy-sis really gives us discipline if we getinto a competitive situation," says Den-nis FitzSimons, WGN vice presidentand executive manager. "It's really anexample of disciplined planning, and ifJim has brought anything to the group,it's that."

Dowdle's most fundamental contribu-tion was recognizing the importance offirst -run programming. "He saw ityears ago," Bell says. When Dowdlejoined Tribune in 1981, it owned sta-tions in Chicago and New York, butlacked a presence in Los Angeles."KTLA, all $510 million of it, was per-ceived as the missing link. He had thevision of first -run programming, and heknew you needed L.A., Chicago andNew York to launch anything."

The 56 -year -old Dowdle started hiscareer at Tribune Co. He sold automo-tive ads for the Chicago Tribune aftergraduating from Notre Dame, wherehe played basketball and got a degreein accounting. He left to join theMarines, and after the service he tooka job with the Edward Petry Co. ad repfirm. He went from there to the KatzCo. "I really liked selling the intangi-ble," he says. In 1962, Dowdle becamenational sales manager of KWTV inOklahoma City. Two years later he leftto take the same job at KSTP in St.Paul, the flagship station of HubbardBroadcasting. In 1973, he was namedvice president and general manager ofTampa's WTOG, where he stayed untilrejoining Tribune in 1981.

His long-term goal for Tribune, saysDowdle, is to preserve the "habit ofgrowth." He emphasizes that there areonly five firms with TV outlets in NewYork, Chicago and Los Angeles. "With-

re

IN FOCUSSHAPING CABLE'S FUTURE

ood studio. Whent would happen, and

th recalls.dicated exclusivity,t broadcasters, butIn an interview instatement of syncli-gional independentsms. Now some inde-Dowdle argues that

out those cities, it's impossible to get new programming on theair. It's where we make a difference, and use an advantage."

Despite his reputation as a visionary, Dowdle thinks that toomuch effort can be wasted trying to catch the next program-ming craze: "Trends come and go. It's more important todevelop in many directions. You must move, you must continuegrowth, both in size and diversity. I would hope that at the endof the year we'd have new projects, progress, successes, hope-fully limited failures. But I'll only predict one thing for sure:We'll be moving." CHERYL HEUTON

71,000,000Senior and subordinated debt and a

$35,000,000 interest rate cap provided to an affiliate of

FALCON CABLE TVLos Angeles, California

for the acquisition of cable television systems

WESTINGHOUSE CREDITMedia Finance Division

Brian Conn, Pittsburgh 412/393-3215



THE POWERS THATRUN TELEVISION

The leaders of TV's publicly traded companies and their battle plans.

COMPANY/CHIEF EXECUTIVE AND RESUME PERFORMANCE

ADELPHIA COMMUNICATIONS: Cable systems serving750,000 subscribers. 1989 revenues: $187.6 million.JOHN J. RIGAS, founder, chairman, CEO/president; 66;Rensselaer Polytechnical Institute, BS; Started first cablesystem in Coudersport, Penn., 1952; increased cable sys-tems throughout Western Penn. and New York, 1956-1972; Adelphia Communications incorporated, 1972;went public in 1986 with the Rigas family retaining 80 -percent ownership.

ALL AMERICAN TELEVISION INC.: Producer and distribu-tor of TV programming; national advertising sales rep forother distributors. 1989 revenues: $16.9 million.GEORGE BACK, president; 50; Hofstra Univ., BA, businessadministration, New York Univ., MA, PhD; Co-founded AllAmerican, 1982; v.p., g.m. of Group W Productions, 1970;chief executive of Hughes Television Network, 1978;started All American's predecessor, George Back & Associ-ates, 1979; executive director of NATPE, 1978-1980.

AMERICAN COMMUNICATIONS & TV: Eighty percent ofNational Mobile Telephone and Radio Inc. (for sale), twoindependent stations, four mobile uplinks. 1989 revenues:$1.3 million.COY G. EKLUND, chairman/CEO/director; 74; MichiganState Univ., BS; Lt. Col., U.S. Army; With The Equitable LifeAssurance Society, 1938-1983, retired as chairman andCEO; currently chairman/CEO, Trivest Financial Services,general partner of Telentry and Astra Limited Partnerships.

AMERICAN FAMILY CORP.: Broadcast group owns sevenTV stations. 1989 revenues: $2.44 billion.LEROY PAUL, president American Family BroadcastingGroup; 60; Univ. of Alabama, BA; joined American Fam-ily in 1977; announcer at WAPI Birmingham and WJRDTuscaloosa and sports director at WSFA Montgomery,1946-1961; Royal Crown Cola Co., including v.p., mar-keting, 1964-1975.

Added 122,000 customers due tointernal growth and acquisitions.System upgrades and interestpayments associated with recentexpansion contributed to a netloss for 1989. The company setup a training program for CSRs,supervisors and technicians toimprove customer service.

Increasing the number of its adsales clients enabled All Ameri-can to significantly increasesales despite a soft market. Withmore spots to sell, along withnew distribution markets incable and overseas, says Back,All American has enjoyed asteady financial climb.

Eklund's Trivest rescued ACTVfrom the brink of Chapter 11,cutting h.q. staff, settling lawsuits,rebuilding Fox affiliate WTGSSavannah, Ga. Sale of NationalMobile Telephone pending. Com-bined value of WTGS and Utahindie KOOG has increased four-fold since Trivest's entry in '87.

American Family acquiredWTVM-TV in Columbus, Ga.,and sold KTIV-TV in Sioux City,Iowa. Using debt to finance itsrecent station buys, pre-taxearnings last year fell to theirlowest levels since 1981 withoperating cash flow essentiallyremaining flat.

OUTLOOK

Rigas, who expects net losses forboth 1990 and 1991, will con-tinue to acquire systems. His pat-tern has been to either buy themcontiguous to established clustersor purchase large systems inother areas that can serve as thebasis for new clusters.

Facing a crowded American syn-dication market, the emergenceof Fox, and no new program-ming ready for production, Backwants All American to hedge itsbets through aggressive expan-sion into other distribution mar-kets such as cable, home videoand international syndication.

With improved finances, ACTV islooking to buy. Purchase of indieWTAT Charleston, S.C., however,was aborted just before Hurri-cane Hugo struck. KOOG'stower relocation will quadrupleits coverage. Eklund seeking FCCapproval to expand WIGS cover-age into Augusta, Ga.

With the strongest ratings everlast year, Paul expects only mod-est growth this year, "belowwhat we expected." He has nosolid answers why, but he doesintend to tighten costs at hisgroup's seven small andmedium-sized network affiliatesin response.


TELEVISION'S TOP EXECUTIVES


AMERICAN TELEVISION AND COMMUNICATIONSCORP.: Second-largest cable MSO with more than 4.4 mil-lion basic subs, 82 -percent -owned by Time Warner. 1989revenues: $973.4 million.JOSEPH J. COLLINS, chairman/CEO, also chairman/president, Time Warner Cable Group; 46; Brown Univ., BA,Harvard, MBA; Named chairman, 1988; joined ATC in1972 as marketing director in Orlando. Fla.; transferred tocorporate, 1974; president, 1982; president of HBO, 1984.

BURNHAM BROADCASTING CO.: Five TV stations, twocompanies that produce commercials and training films.1989 revenues: $57.4 million.PETER B. DESNOES, managing general partner, CEO;45; Univ. of Arizona, BA; Formed limited partnership atBurnham, 1983; joined ABC in 1968 and held varioussales, marketing and research positions; general salesmanager, WLS-TV, Chicago; v.p. of sales and marketingfor ABC's O&Os; president and general manager, WLS.

CABLEVISION SYSTEMS CORP.: Ninth -largest MSO with1.5 million subscribers; Rainbow Program Holdings (jointventure with NBC) runs various cable networks; RASCO,regional cable advertising sales firm; CNI, cable rep firm.1989 revenues: $492.7 million.CHARLES F. DOLAN, chairman/CEO; 63; attended JohnCarroll Univ.; Organized Cablevision, 1973; founded Man-hattan Cable, 1961; started HBO, 1971.

Time Warner merger added toATC's power in industry.Rochester, N.Y., "cable indie"WGRC broke new ground inlocal origination territory, creat-ing new ad sales opportunitiesand some outcry from indepen-dent station owners around thecountry.

Slumping economies in threemarkets and a high debt loadfrom station purchases causedBurnham to miss payments onsome notes last year. "Last yearwe were not expecting the depthof market recession we experi-enced," Desnoes says.

Joint NBC -Rainbow venturereduced start-up risks for someservices but also incurred losses.Regional sports nets are moneydrains with long-term potential.Growth of American Movie Clas-sics has been explosive. Won bat-tle with MSG Network.

OUTLOOK

Regulatory concerns cloud futuredirection, taking up much ofCollins' time and leaving the

"in a holding pattern,"a spokesman says. By unifyingmanagement of the N.Y.C. sys-tems, Collins hopes to improvewhat is considered one of theworst -run systems in the country.

Burnham has reached an accom-modation with its lenders, saysDesnoes. He thinks firm's em-phasis on local programming will"make us successful regardless ofthe economic climate or the costof syndicated programming."Still, he concedes Burnham is atthe mercy of local market forces.

One of cable's most controversialCEOs, Dolan says basic is out-dated, that subs will eventuallypay only for what they want, e.g.,his N.Y clusters. Betting million!on Olympics on PPV, Sky CableDBS venture and expansion oflocal -cable news operations.

CAPITAL CITIES/ABC INC.: ABC Television Network,eight TV stations, seven radio networks and 21 radio sta-tions. 1989 revenues: $4.96 billion.DANIEL B. BURKE, president and CEO of CapCities/ABC; 61; Univ. of Vermont, BA, Harvard Univ.,MBA; joined Cap Cities in 1961 as g.m. of WTEN inAlbany, N.Y.; executive v.p. and director of Cap Cities'1986 purchase of ABC.

In June Burke completed theunusually smooth transition toCEO, replacing Tom Murphy, hisassociate for nearly threedecades. Burke takes over aftera year of record revenues andearnings, climbing network rat-ings and ABC's first -ever top -rated evening network news.

At the top of Burke's agenda isboosting ABC's fortunes inprime time. To spawn innovativeprogramming this year, the net-work has agreed to hefty devel-Dpment deals with top producer!such as Steven Bochco ancJames L. Brooks. Burke also ha:his eyes out for a successor.

CAROLCO: Motion picture production, TV production andsyndication (Orbis Communications), home -video distribu-tion (48 percent owner of LIVE Entertainment). 1989 rev-enue: $143.1 million.ROBERT L. TURNER, president, Orbis CommunicationsInc.; 48; St. John's Univ., BA and Graduate School of Busi-ness; Formed Orbis in February 1984, acquired by Carolcoin 1987; began career at ABC-TV Station Relations; 15years with Bristol-Myers in advertising services.

Orbis failed to meet expectationsdue to glut of second -tier barter -syndication product. Companyshifted efforts to first -run cashplus barter, clearing new Joker'sWild, its first game show, for fall;and created Carolco TelevisionProductions to produce andacquire made -for -TV movies.

Turner plans to continue shif-away from straight barter. "As thebusiness has changed, so havewe," he says. Acquisitions are onthe agenda: "not only programming but comparable companies,new lines of business-such asthe unwired network area, when_we see opportunity."

CBS INC.: Owns CBS Television Network, five TV stations,CBS Radio Networks and 20 radio stations. 1989 rev-enues: $2.96 billion.LAURENCE A. TISCH, CBS president and CEO since1987; 68; New York Univ., BS, Univ. of Pennsylvania, MS,industrial engineering; director since 1959 of LoewsCorp., which owns insurance, tobacco products andhotels; Loews chairman and co -CEO; acquired controllingCBS interest, 1986.

Another year of hard knocks atCBS, the third -rated major net-work overall with both continu-ing trouble in prime time andevening national news, once thejewel of the crown. Its balancesheet remains strong, howeverwith a substantial increase inbroadcasting group profits.

Of the Big Three, CBS underTisch has most fervently stuckwith broadcasting as the route bsuccess. With Jeff Sagansky atCBS Entertainment, Tisch is hol-ing for a programming turr -around. Meanwhile, he's spentheavily on sports and supportedtargeting of younger viewers.

CENTURY COMMUNICATIONS: Fifty-five cable systems,with more than 850,000 subscribers, four radio stations, 11cellular telephone systems serving five areas with a totalpopulation of 2.5 million. 1989 revenues: $191.2 million.LEONARD TOW, chairman and CEO; 62; Brooklyn Col-lege, BA, Columbia Univ., MA, PhD; Founded CenturyCommunications in 1973; teacher, 1953-1960; venturecapitalist, 1960-1963; management consultant, 1963-1964; senior v.p., Teleprompter Corp., 1964-1973.

Century is a rapidly expandingcompany with high profit mar-gins, and its management rankihave swollen to keep pace. Thecompany has a $700 millionline of credit; its cellular tele-phone subsidiary has a separate$250 million line of credit foracquisitions.

While Tow intends to acqui emore cable systems, his plansfor expansion center on the tel 3 -

phone industry. In addition to iscellular holdings, Century is alsothe single largest shareholder inCitizens Utility Company, D

which Tow was recently namedchairman and CEO.

CHANNELS / AUGUST 13, 19E0 39


COMPANY/CHIEF EXECUTIVE AND RESUME PERFORMANCE OUTLOOK

CHRIS -CRAFT INDUSTRIES: Seven TV stations, manufac-turing, plastic films, non -woven fiber products. 1989 rev-enues: $267.5 million.HERBERT J. SIEGEL, president, chairman, also chairman,CEO, United Television; 62; Lehigh Univ., BA; Becamechairman, 1968; president, chairman, General PicturesCorp., 1960; chairman, Baldwin -Montrose Chemical,1960, merged into Chris-Craft, 1968; chairman, United,1982; director, Warner Communications, 1984-1989.

The sale of Chris -Craft's interestin Warner last year made 1989the most successful year in thecompany's history. However,results from the core televisiondivision were disappointing; the7 -percent rise in revenues wasmore than offset by a 21 -percentincrease in program costs.

The reclusive Siegel and com-pany enter the '90s in strongfinancial shape due to relativelylow debt and plenty of capitalon hand from the sale of stockto Warner. Both factors shouldenable the company to continueto expand media operationsthrough acquisition.

CLEAR CHANNEL COMMUNICATIONS INC.: Five TVstations, 16 radio stations, two radio networks: Okla-homa News Network and Clear Channel Sports Network.1989 revenues: $45.7 million.LOWRY MAYS, president, CEO; 55; Texas A&M, BS,petroleum engineering, Harvard, MBA; U.S. Air Force,1958; Co-founded Clear Channel in 1972; senior v.p./corporate finance, Russ and Co., 1962-1975; chairmanof the joint board, National Association of Broadcasters.

Capitalizing on what Mays terms"a window of opportunity,"Clear Channel has rapidlyexpanded into TV, acquiring fourFox affiliates and one indepen-dent within the past 18 months.Despite a net loss, the companyhas succeeded in increasing itscash flow.

Noting that the number of invest-ment opportunities has recentlydecreased, Mays is very doubtfulthat Clear Channel will continueat its current pace of expansion.He plans to "substantiallyincrease local programming" andpropel stations with strong mar-keting and promotions.

COLUMBIA PICTURES ENTERTAINMENT: Production anddistribution of feature films and TV programs; motion -pic-ture theater ownership. 1989 revenues: $1.25 billion.GARY LIEBERTHAL, chairman and CEO, Columbia Pic-tures Television; 44; Cornell Univ., BS; Named president ofpredecessor company Embassy Telecommunications in1982; named chairman/CEO in July '86; oversaw mergerof Embassy, Columbia TV and Tri-Star TV; began career in1968 with Arbitron.

Acquisition by Sony USA meantchange in top studio manage-ment, though Lieberthal re-mains. TV division successfullylaunched Who's the Boss? insyndication, and shored up net-work development by signinghigh-priced deals with topwriter -producers.

Lieberthal will be under somepressure from Sony to spikeactivity: Syndication is off toa good start with the rolloutof Married . . . With Children.Lieberthal must also now takesigned producer talent andconvert it into network seriescommitments.

COMCAST CORP.: Owns cable systems with 2.5 millionsubscribers, 50 percent of SCI Holdings Inc., minority inter-ests in Heritage Communications and Garden State Cable -vision, cellular telephone. 1989 revenues: $562.3 million.BRIAN L. ROBERTS, president; 30; Univ. of Pennsylvania,BS, Wharton School of Finance; President, Feb. 1990; con-troller of Comcast system in Trenton, N.J., 1981; assistantmanager, Flint, Mich.; manager, Trenton,; regional v.p.,Comcast Cable; exec. v.p., Comcast Corp., 1987.

A critic of lavish cable -networkspending for sports rights,Roberts says such spending willincrease rates. Supports COM-cast's investments in cable nets,sits on the boards of QVC, Turnerand Viewer's Choice. Cash flowgrew 28 percent last year, mak-ing red ink manageable.

Strong cash flow means Robertshopes to buy more systemswhen the market is friendlier.Says 60 channels is causing"sensory overload" among view-ers and calls for stronger pro-gram promotion. "We have tohelp the consumer understandwhat we really offer."

DICK CLARK PRODUCTIONS: Television production, tal-ent booking, restaurant ownership/licensing (The AmericanBandstand Grill). 1989 revenues: $25.6 million.RICHARD W. CLARK, chairman and CEO; 59; SyracuseUniv., BA; Clark formed company in 1957, the year heconvinced ABC to carry WFIL Philadelphia's local Band-stand show, which Clark hosted; took the company publicin January 1987; right-hand man for two decades is FranLa Maina, the company's president and COO.

Suffered a setback in first -run astwo series, Trial by Jury andAmerican Bandstand, were can-celed. Rebounded with two newseries: The Challengers for falland Let's Make A Deal, now onNBC; both with Buena Vista.Consistent specials business.

Concentrating on producing lightentertainment and game shows:"Costs are out of whack" for dra-matic series or sitcoms, La Mainasays. Clark will focus on develop-ing game shows and expandingthe Grill; La Maina focusing onthe talent agency and Grill mer-chandising/franchising.

E.W. SCRIPPS CO.: Nine TV stations, five radio stations,22nd -largest MSO with 537,000 subscribers, 19 newspa-pers; syndicates/licenses news features and comics. 1989revenues: $1.3 billion.LAWRENCE A. LESER, president/CEO, Scripps HowardBroadcasting; 55; Xavier Univ., BA, accounting; Becamepresident, 1985; Deloitte, Haskins & Sells, 1957; joinedScripps as secretary -treasurer, 1968; financial v.p., 1975;executive v.p., 1984

Cable has fueled much of thecompany's financial growth, theSacramento system in particular.Stations suffered from a soft admarket, but the company hasbenefited from going public in1988, and paying off debt obli-gations incurred since then.

Analysts feel cable segment hasunderperformed compared toother MSOs, but expect it to keepleading Scripps' growth. Leser'shopes are pinned on Sacramentowith customer service consideredthe key. Debt reduction also cru-cial, unless "a really attractive sit-uation presents itself."

FALCON CABLE TV: Nineteenth -largest cable MSO with800,000 subscribers (including all seven partnershipsunder the Falcon umbrella). 1989 revenues: $30.1 million.MARC B. NATHANSON, founder/chairman/CEO; 45;Univ. of Denver, BA, Univ. of California -Santa Barbara, MA;Founded Falcon, 1975; director, corp. devo. and market-ing, Cypress Communications, 1969; v.p., marketing,Teleprompter, 1973; chairman/president/CEO of EnstarCommunications since 1988.

Strategy of buying "classic" sys-tems in rural areas has paid offin some ways, but hurt in others.Revenues are growing, butdebt has risen accordingly.Nathanson asked for-andgot-permission from his boardto increase debt to 65 percent ofall assets.

Sees customer service as key toFalcon's future. Noting that hisexpertise lies in building andoperating systems, he also looksforward to exporting it toEurope, having already "gottenour toes wet" with the BritanniaCable partnership in England.




FINANCIAL NEWS NETWORK INC.: Financicl-newscable network, data services, first -run programming, TheLearning Channel (47.5 percent). 1989 revenues: $44.6million.EARL BRIAN, M.D., chairman and CEO; 48; Duke Univ.,pre-med and medical degrees; Founded FNN, 1981; U.S.Army Medical Corps in Vietnam, Silver Star, 1968-1970;California Secretary of Health and Welfare, 1970-74;taught at U.S.C. School of Medicine prior to founding FNN.

FNN gained distribution andappears to have beat back CNBCchallenge. Brian says competitionstrengthened FNN's identity.Advertisers liked removal ofinfomercials; number of nationaladvertisers doubled in 1989. ThisMorning's Business, syndicated byViacom, renewed through 1991.

Brian plans expanded coverageto match NYSE's new hours, andto push data services aimed atmarket professionals. Brian onprogramming: "We're Falfwayup the S-curve-we haven'tapproached maturity level. I

anticipate improving the fare astime progresses."

FRIES ENTERTAINMENT INC.: TV production and syndi-cation, home video. 1989 revenues: $34.8 million.CHARLES W. FRIES, chairman, president, CEO; 61; OhioState Univ., BS, business; Founded Fries Entertainment,1974; vice president of production administration, ScreenGems, 1960; vice president of feature -film procuction,Columbia Pictures, 1968; executive vice president of pro-duction for Metromedia Producer's Corp., 1970.

Several TV projects proved to bedisappointments. Fox did notpick up K-9000 for fall, and TheCrucible for HBO has yet to finddirector. Domestic syndicationsales stagnant. One bright spotis home -video division which is"increasing substantially," saysFries.

Given his success in the past,Fries says he will concentrateheavily on producing TV movies.Since home -video produc-ionand distribution is "way up,"says Fries, this area will clso geta lot of attention.

GANNETT CO.: Owns 10 TV and 16 radio stations, plusnewspapers and outdoor advertising businesses. 1989revenues: $3.52 billion.CECIL WALKER, Gannett Broadcasting president andCEO since 1986; 53; Univ. of Nebraska, BS, businessadministration; joined KUSA Denver in 1965, serving asbusiness manager and later v.p.; president and generalmanager, WXIA Atlanta, 1984-1986.

Revenues continued theirupward tick in 1989, but groupexperienced a 6 -percent drop inoperating income, which Walkersays is explained by tough adsales and significant program-ming increases. Group also car-ried the burden of USA Today onTV, cancelled in January.

Walker has encouraged Gannettstations to expand local pro-gramming, increasingly localizenews and demographically tar-get viewership to boost ratings.With that, he says, "our stationswill improve in a tough televisioneconomy."

GENERAL ELECTRIC CO.: Broadcast division includesNBC, its seven owned stations and partnership with Cable -vision Systems in 11 national and regional cable channels,including CNBC. 1989 revenues: $54.57 billion.ROBERT C. WRIGHT, NBC president, CEO since 1986; 47;Holy Cross College, BA, and Univ. of Virginia Law; lawyerat GE, 1969; returned to GE plastics business, 1973; exec.v.p. of Cox Broadcasting, president of Cox Cable, 1980-1983; president, COO of GE financial services, 1984.

NBC continued its ride as thetop -rated network for fifthstraight year. Yet tumbling ratingsafter changes on The TodayShow, unsure efforts to revampthe evening news, slippingprime -time performance andsofter ad -sales projections spelltrouble ahead.

Wright has devoted himself toending the finsyn rules for net-work production, holding June'sannual affiliates meeting inWashington to put pressure onlegislators. That, combined withexpanding NBC in cable, satelliteand overseas, is what he believeswill insure the network's fortunes.

GRAY COMMUNICATIONS SYSTEMS: Three TV stations,one newspaper, warehouse distribution centers, air ser-vice fixed -base operation, real-estate development firm.1989 revenues: $28.5 million.TERRY R MCKENNA, chairman and CEO since 1987; 65;Executor of the estate of James H. Gray (deceased ownerof Gray Communications); senior partner with Heymanand Sizemore, Atlanta.

Group has been in a holdingpattern since 1986 when com-pany founder James Gray died.McKenna reluctantly took overand proceeded to sell off variousunproductive elements duringthat time. WALB, Albany, Ga.'sonly affiliate and Gray's flagshipstation, dominates its market.

At press time, James Gray Jr. hadproposed to take contol inginterest, but had yet to arrangethe necessary financing. Com-pany sources doubt that owner-ship change will radically changethe modus operandi of the group.After transition, McKennc wantsto return to lawyering.

GREAT AMERICAN COMMUNICATIONS CORP: (Ameri-can Financial Corp. owns 65 percent.) Five TV stations,12 radio stations, Hanna -Barbera Productions, leisureproperties, satellite transmission broker, 42 percent ofSpelling Entertainment. 1989 revenues: $300.6 million.GEORGE E. CASTRUCCI, president/COO GACC, chair-man/CEO, Great American Broadcasting Co.; 52: XavierUniv., BS/BA; Named president/COO, May 1990; execu-tive v.p. finance, 1978; president/CEO, GABC, 1987.

Castrucci has admitted to being"deeply disappointed with ourfinancial performance." Flat adrevenues have stunted broadcastgrowth. Hanna -Barbera makesmoney, but has been on and offthe selling block. Parent companyAFC's significant debt obligationswill be hard to meet.

Castrucci seems to have writtenoff improvement at all stat onsexcept WBRC in Birmingham andTampa's WISP. Greatest potentialis seen at Hanna -Barbera,through licensing and retailing ofwell-known cartoon characters,and international programdevelopment.

HERITAGE ENTERTAINMENT: Feature -film production,television syndication, 77 movie theaters. 1989 revenues:$6.6 million.ARTHUR "SKIP" STELOFF, chairman, president and trea-surer; 66, U.S. Naval Academy, BS; U.S. Navy; salesman,WWDC Washington, D.C.; started the original Heritage 21years ago, sold out to Metromedia and started again.

"We've cut back our film opera-tion substantially this year," saysSteloff, anticipating a total outputof two or three titles for 1990,"and we're putting our assets intoa chain of art theaters." Heritageacquired the screens of twochains, Landmark and SevenGables.

Steloff wants 150 theaters by theend of 1990, with an ultimategoal of 200. After its "purposefulwithdrawal from a very crowdedmarket," Heritage will begin toregrow its feature -film operctionnext year with three or four ow -budget pictures. Continues tosyndicate features to television.




HERITAGE MEDIA CORP.: Owns six TV stations, 11 radiostations and in-store advertising companies. 1989 revenues:$165 million.JAMES M. HOAK JR., chairman and CEO; 46; Yale Univ.,BA, Stanford Univ. Law; Legal asst. at FCC, 1969; prac-ticed law in hometown of Des Moines, 1970; co-foundedand was president and CEO of Heritage Communications,1971; formed Heritage Media in a buy out when TCIbought Heritage Comm., 1987.

HOME SHOPPING NETWORK INC.: Electronic retailingvia the Home Shopping Club cable network, broadcast TVstations (all carrying HSC programming), marketing ser-vices. 1989 revenues: $774.3 million.ROY M. SPEER, chairman and CEO; 58; SouthernMethodist Univ., BA, Stetson Univ. of Law; Launched com-pany nationwide with Lowell "Bud" Paxson in 1985; previ-ously in private law practice, real-estate development andradio station ownership.

JEFFERSON -PILOT COMMUNICATIONS CO.: Two TVstations, ten radio stations, sports syndication and produc-tion, computer software services for stations, consulting.1989 revenues: $1.14 billion.JAMES G. BABB, president; 58; Belmont Abbey College,BA; Named president, 1988; joined JP as publicity super-visor, WBTV Charlotte, 1956; g.s.m., v.p. and assistantg.m., WBTV, v.p., g.m., WWBT Richmond, Va., v.p., manag-ing dir, WBTV, 1966-1978; exec. v.p., JP Comm. 1978.

JONES INTERCABLE: Tenth -largest cable operator with1.4 million subscribers. 1989 revenues: $65.8 million.GLENN R. JONES, chairman/CEO, also chairman/CEOof Jones Spacelink and Jones International; 60; AlleghenyCollege, BA, economics, Univ. of Colorado Law School;Formed Jones Intercable in 1970; represented cableoperators in acquisitions, 1961; lost race for Congress,1964; bought first system, 1967.

KING WORLD PRODUCTIONS INC.: TV program distri-bution and production; barter ad sales; TV station owner-ship (WIVB Buffalo, N.Y.). 1989 revenues: $396.4 million.MICHAEL KING, president and CEO; 42; Fairleigh Dick-inson Univ., BA, marketing; Began career selling ad timefor WORC-AM in Worcester, Mass., then WAAF-FMWorcester; in 1976 moved to WKID-TV Ft. Lauderdale,where brother Roger was working; took active role inKing World, which father Charlie King founded in 1964,in 1977.ROGER KING, chairman; 45; Also worked in sales inWorcester radio, moved to WKID-TV Ft. Lauderdale asgeneral sales manager; joined King World, 1977; he andMichael also worked for Colbert Television Sales in 1978selling CTS shows; King World bought syndication rightsto Wheel of Fortune, January 1983.

LEE ENTERPRISES: Five TV stations, eight daily newspapersand specialty publications; 1989 revenues: $269.4 million.GARY N. SCHMEDDING, vice president for broadcasting;52; Univ. of Missouri School of Journalism, BA; Named v.p.in 1989; joined Lee in 1974 as program and news directorat KHQA-TV in Quincy, Ill.; served in various managementpositions there, named general manager, 1984; generalmanager, WSAZ-TV in Huntington -Charleston, W.Va.,1986.

All six of Heritage's secondary -market stations had flat ordeclining revenues last year, de-creasing expenses to maintainmargins. Because of slowdown innetwork TV sales, Heritage pur-sued alternative media, acquiringActmedia Inc., nation's largestprovider of in-store advertising.

Speer terms fiscal year '89 a"turbulent" time for HSN. Com-pany incurred significant lossesreorganizing after aggressiveexpansion. Closed down mail-order pharmaceutical operation;"reduced substantially" financial-services operation. Settled withGTE after losing lawsuit.

Babb says strong managementof expenses and "creative sell-ing"-convincing non-traditionaladvertisers to buy time-hasspurred the company in a slowad market. New productionsincluded the Tour de Trump andother Olympic -style events forTV.

Major cable acquisitions such asCentel's Chicago systems in1989 boosted revenues but hurtthe bottom line. Company's sys-tem (and telephony) building inthe U.K. makes sense to Jones,who says, "the world is globaliz-ing, borders are coming down.We want into the EC."

Well supported with a strongexecutive roster, Roger focuseson sales and marketing, andMichael, who is the company'sHollywood presence, overseesprogram development and cre-ative services. Company suc-cessfully resuscitated InsideEdition after a rough launch inJanuary '89; sold Only Yesterdayfor fall '90 debut; but failed toplace Monopoly in syndication.A summer run for the show onABC may provide momentumfor a renewed push. Continuedmultiyear renewals of most suc-cessful shows, locking in Wheelof Fortune and Jeopardy throughAugust '92, The Oprah WinfreyShow through August '93.

Operating margin grew primarilydue to cost controls at Honolulu'sKGMB, previously a problemspot. "Due to the ratings down-turn for network affiliates and theuncertainty of national advertis-ers," he says, "we began to refo-cus much of our attention onlocal and regional revenues."

OUTLOOK

Hoak has urged boosting rev-enues by increasingly relying onlocal ad sales. Hoak's strategyhas emphasized smaller -than -average staffs, accepting lowerratings if a station's sales forcescan successfully sell them. Allfive NBC and ABC affiliatesranked second or third.

Remaining "private label" retaildivisions such as vitamins andcosmetics are being enhanced.Speer is also focusing on expand-ing the company's direct -market-ing efforts: HSN provides800/900 telephone services forHBO's marketing efforts andthird parties.

Babb has aggressive expansionplans for JP. Wants to take JPbeyond sports into entertain-ment production and syndica-tion. On the station side, he'strying to sell "events"-forexample, a Paramount tie-in ona motor race for Days of Thun-der-rather than lust spots.

Jones is best known for his com-mitment to technological ad-vancement, and that plays a bigrole in his future. Predicts that byyear-end 1990, 22 percent of allhis systems will have a fiber-opticbackbone, jumping to 45 percentby the end of 1991. Fiber know-how could be exported to U.K.

Michael King cites programdevelopment as top priority.Company's Research & Develop-ment Network station coopera-tive will be testing one -hourstrip starring Tim and DaphneReid this fall; King hopes to takethe show to NATPE in January.Also launching new CandidCamera under auspices of AlanFunt and Vin De Bona (Amer-ica's Funniest Home Videos).King cites late -night syndicationand cable first -run as growthareas, and also says, "We havea very large war chest. And wethink that the '90s are going tobe an excellent time for acquisi-tions."

Schmedding says more localizedadvertising approach starting topay off. "Our goal," he says, "isto increase revenues two per-centage points higher than weincrease expenses, although thatis confused by reduced networkcompensation and the uncertainpolitical advertising issue."




THE LIBERTY CORP.: Cosmos Broadcasting owns seven TVstations, Liberty Life Insurance Co., real estate and invest-ment concerns. 1989 revenues: $334.6 million.JAMES R. SEFERT, Cosmos Broadcasting president andCEO since 1984; 61; Ohio State Univ., BA, broadcastingmanagement; With Crosley Broadcasting, 1954-1960; withPeters, Griffin, Woodward Inc., 1960-1980; became presi-dent and chairman, 1976; joined Cosmos 1980 as v.p. cor-porate development, became senior v.p. operations, 1982.

Revenues for 1989 were downslightly, attributed to less politi-cal advertising and no OlympicGames, but Cosmos continuesto benefit from five strong NBCaffiliates. In December Cosmossold off WDSU in New Orleans."We couldn't see a bright futurethere," says Sefert.

At a time of slower revenuegrowth, Sefert has focusedgroup's efforts on local sales insecondary markets. Spendingmore time rethinking ad strate-gies beyond TV to competemore effectively. Anticipatesmaking an acquisition over thenext 18 months.

LIN BROADCASTING: Cellular telephone operations,seven TV stations, specialized publishing. Purchased byMcCaw Cellular lost year. 1989 revenues: $250.7 million.GARY R. CHAPMAN, president, LIN Televisions Group; 46;Southern Illinois Univ., BS, radio and TV communications;Named president in December 1988; began in sales withKSDK-TV St. Louis, 1967; general manager, WLNE (Free-dom Newspapers), 1979; elected chairman of NAB Televi-sion Board, June 1990.

TV revenues rose just 1 percentlast year, but Chapman nonethe-less launched an aggressiveexpansion of local news andinformation programming, up 27percent among the seven sta-tions. Chapman sees early morn-ing as especially promising.

Chapman expects to stay thecourse: "Control the expenses,and move the television proper-ties forward in terms of news,localism. It's very importcnt thata TV station carve out an identityin the local market." He says newowner McCaw Cellular isn't dic-tating any changes in direction.

MACLEAN HUNTER LTD.: Owns cable systems in Canada,Europe and the U.S with 387,000 U.S. subs; Canadianholdings: two TV stations, 23 radio stations, TV and filmproduction, magazines, printing, newspapers, paging ser-vices. 1989 revenues: SCan. 1.4 billion.RONALD W. OSBORNE, president/CEO; 44; CambridgeUniv., French/German; Named CEO, 1986; partner, ArthurYoung, Clarkson Gordon in Brazil, 1976; joined MacleanHunter as v.p., finance/CFO; president/COO, 1984.

Acquisition of Selkirk Communi-cations, the largest in MacleanHunter's history, added signifi-cantly to cable subs and radioholdings, but cost the companyin debt. Soft ad markets hurtboth magazine and newspapergroups in North America.

A joint venture with 3ritishbroadcaster Blackburn Group torun three Canadian stationsshould add to the company's TVreach. Osborne is placing muchhope in the U.K. cable venture'ssuccess, having just shy of 1 mil-lion homes passed available tocultivate.

MCA INC: Theatrical, TV and home -video production anddistribution, TV station (WWOR New Jersey), cable network(50% USA Network), theme parks, recorded music, bookpublishing, other. 1989 revenue: $3.4 billion.AL RUSH, chairman, MCA Television Group; 64; ColumbiaUniv., BA, Columbia Law School; Appointed president of TVGroup in October 1986; began career in NBC legal; joinedMCA Artists Limited, 1956; rejoined NBC in 1973, thenNBC Sports; president of MCA Program Enterprises, 1978.

A strong year for the companyoverall, with network and foreignsyndication revenues helping tooffset lower domestic syndicationrevenues. Rush says goal wasdiversification within TV group.Moving forward with partnershipswith Imagine, the Arthur Co. andKing World.

Rush sees opportunities mostly inforeign and cable; says f rst-runand network are mature. He'salso hired several new execu-tives, one to oversee interna-tional coproductions, one tohead up children's programmingand animation.

MCGRAW-HILL INC.: Four TV stations, magazines, books,educational materials, financial data. 1989 revenues: $1.8billion.EDWARD T. REILLY, president, McGraw Hill BroadcastingCo.; 43; St. Francis College, BA; Appointed president in1987; started with McGraw-Hill in financial services, 1968;became editor -in -chief, financial publications; joinedbroadcasting division in 1985 as senior v.p., became exec-utive vice president and COO for broadcasting in 1986.

Market softness in Denver andIndianapolis as well as industry-wide ad slumps slowed revenuegrowth, though all but Denvermade gains in afternoon, earlyevening news and access. Broad-casting accounted for 10 percentof company operating profit ononly 5 percent of revenues.

Reilly plans continued emphasison local news and program-ming. Plans to seek new adver-tisers by reaching out to busi-nesses that don't currently useTV. Programming buys for Den-ver's KMGH (Oprah Winfrey,Wheel of Fortune and Jeopardy)lead effort to escape third place.

MEDIA GENERAL INC.: Owns three TV stations, two cablesystems, newspapers, magazines and a newsprint operation.1989 revenues: $606.4 million.J. STEWART BRYAN III, chairman, president and CEO;52; Univ. of Virginia, BA; Editorial, sales and productionjobs at Media General papers, 1963; v.p., exec. v.p. andpublisher of Tampa newspapers, 1968; publisher of Rich-mond, Va., papers, 1978; Media General vice-chairman,then COO, 1985-1989; current title since July.

After seven years of constructionand a net investment of $125million, Media General's FairfaxCable-ranked first in the nationin average revenue per sub-scriber-nearly doubled its oper-ating profits in 1989. This helpedthe company offset weakenedperformance at its stations.

While his father remains chair-man, J. Stewart Bryan has com-pleted his rise to overall control ofthe Bryan family's Media Gen-eral. Bryan anticipates a flat 1990at best. He plans further stream-lining of operations, selling offsome newspaper assets butexpanding cable operations.

MEREDITH CORP.: Seven TV stations, magazine andbook publishing, real-estate marketing and franchising,printing. 1989 revenues: $792 million.PHILIP A. JONES, president of Meredith Corp. Broad-casting Group; 46; Univ. of Missouri, BA, Harvard Busi-ness School Executive Program; Named to position, 1989;station jobs include g.s.m., WTAF-TV Philadelphia, 1968;g.m., WGR-TV Buffalo, 1976; v.p./g.m., KCTV Kansas City,1979; exec. v.p., Meredith Broadcasting Group.

It was a "very tough year," Jonessays. Sluggish ad sales, higherprogramming costs and lowerratings hurt the CBS affiliates inparticular, although the Fox andNBC stations did well. Phoenixindie KPHO faced competitionfrom two new independents.

To deal with the slow stationeconomy, Meredith is aggres-sively cutting adminis-rativecosts. To control programmingcosts, says Jones, Meredith, likeother station groups, is runningoff inventory instead of buyingnew shows. Jones wants toacquire more stations.

CHANNELS / AUGUST 13, 1990 =3



MGM/UA COMMUNICATIONS CO.: MGM/UA Televi-sion Production, MGM/UA library. 1989 revenues: $876.5million.DAVID GERBER, chairman and CEO, MGM/UA TelevisionProduction Group Inc.; 59; Univ. of the Pacific, BA; Namedto current position in 1988; started in advertising; hired by20th Century Fox Television, 1965; formed productioncompany, 1972, affiliated with Columbia Pictures Televi-sion; went to MGM, 1981; president, TV division, 1986.

Hollywood's star takeover tar-get, MGM/UA is waiting out atroubled, on-again-off-again bidby Pathe Communcations Corp.Much of the company's opera-tions have slowed while futureremains unclear, yet boasts threeprime -time shows and successfulfirst -run syndication series.

Gerber says success results fromTV division operating like anindependent satellite. "TV's beena source of pride for the com-pany, so we get support." Gerberwants more foreign coproduc-tions and innovative program-ming, but main goal is "to keepgoing until things get settled."

MULTIMEDIA INC.: Four TV stations, TV production andsyndication, 330,000 cable subscribers, seven radio sta-tions, newspapers, video production. 1989 revenues:$462.7 million.WALTER E. BARTLETT, chairman and CEO; 62; BowlingGreen State Univ. of Ohio, BA; Named chairman, 1989;senior v.p. supervising TV for Avco Broadcasting until 1976;joined Multimedia, 1976, named president of broadcastingdivision, 1977; president and COO, 1981; CEO, 1985.

Multimedia reorganized in 1985with an LBO led by management.Debt payments are ahead ofschedule; debentures wereredeemed before interest wasdue. Cash flow for 1990expected to nearly double 1985'sfigure. Cable ad sales were prof-itable despite slow market.

Purchase of interest in WKYCCleveland is pending, andBartlett says $375 million in newfinancing will be used for similaracquisitions. New productionssuch as first -run Big Break withNatalie Cole could help diversifylineup dependent on talk (Don-ahue, Sally Jessy Raphael).

NFL0 N.

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NELSON ENTERTAINMENT: TV and film producer anddistributor, with home -video distribution. 1989 revenues:$109 million.BARRY P. SPIKINGS, president/COO, Nelson Entertain-ment; 51; Worked in various executive capacities at ElstonStudios in the late '70s; produced 1978 Oscar winner TheDeer Hunter while at EMI, chairman of EMI, 1980-1982;established Spikings Corp., a film production company,which was acquired by Nelson in 1985.

Plans were made for newlyformed Nelson Television to pro-duce series, made -fors andminiseries. Entertainment groupalso signed on exclusive 15 -filmdeal in 1989 with Showtime/TMC, opening up another TVwindow for Nelson's Theatricalproduct.

Nelson TV president/CEO SteveSohmer resigned in late july, butwill complete current projects.Parent company is in the processof major reorganization, con-centrating on its core business ofmaking and marketing motionpictures. Television division isbeing deemphasized.

NEW LINE CINEMA CORP.: TV production, film productionand distribution, owns one -fifth of RHI Entertainment Inc.,which makes miniseries and made -for -TV movies. 1989revenues: $57.2 million.ROBERT SHAVE, president and CEO; 50; Univ. of Michi-gan, BA, Columbia Univ. Law School, Fulbright Scholar;Founded New Line in 1967 after earning law degree andstudying in Sweden; still works as a producer and director,including exec. producer for TV series Freddy's Nightmares.

Profits from some films (TeenageMutant Ninja Turtles, House Party)yielded big gains despite disap-pointing earnings for others andpoor showing of first -runFreddy's Nightmares. Paid off alldebt, expanded its line of creditand is weighing numerous offersfrom producers and distributors.

The RHI deal offers a new areafor growth with minimal initialrisk. Shaye has indicated that heplans to blend New Line'sexpertise as a producer of low-cost, youth -appeal entertain-ment with RHI's experience as aTV deal -maker.

NEW YORK TIMES CO.: Thirty-seven newspapers, 17magazines, forest products, five TV stations, two radio sta-tions, a news service, a features syndicate and databasecreation and licensing. 1989 revenues: $1.77KATHARINE P DARROW, v.p., broadcasting and informa-tion services, corp. devo.; 46; Univ. of Chicago, BA,Columbia Univ. Law; Joined Times out of law school; gen-eral counsel since 1981; director of information servicesgroup, 1987; v.p. of broadcasting/info. group, Feb. 1989.

The Times stations, all Big Threeaffiliates, rank one or two intheir markets. Stations haveadded news and local program-ming to strengthen local adsales. Sale of lone cable systemin Philadelphia produced recordper-share earnings.

Stations continue to add newsand local programming. Market-ing research has been introducedto help them compete. The Timeshas passed up opportunities toexpand in broadcasting, a prof-itable but undeveloped part ofthe company; division is not focusof current operations.

NEWS CORP.: Fox Inc., a unit of News Corp., includesseven stations, Twentieth Century Fox, Twentieth Televi-sion, Fox Broadcasting, CBS/Fox Video and DeLuxe Labo-ratories. 1989 revenues: $6.4 billion.BARRY DILLER, chairman and CEO of Fox; 48; joinedFox in 1984; was chairman and CEO of Gulf + Western'sParamount Pictures for ten years prior; ABC Entertain-ment, 1966-1974; v.p. for programming, 1968; v.p.,prime -time television, 1970.

Fox upped its revenues andearnings, benefiting from thestrong performance of bigmovies such as Die Hard andBig, such first -run syndicatedprograms as A Current Affairand the ratings bonanza on theFox network from The Simpsonsand Married ... With Children.

Diller pins his optimism on thenetwork's intention to roll outfrom three to five nights of pro-gramming, launch a nationalnewscast and provide affiliatesan afternoon block of children'sprogramming. Says he spends aquarter to a third of his daywatching news.

NOSTALGIA NETWORK INC.: Operates basic -cablechannel Nostalgia Television. 1989 revenues: $4.1 million.MICHAEL E. MARCOVSKY, chairman, CEO; 46; New YorkUniv., BS, communications arts; Fordham Univ., MBA; U.S.Signal Corps, Vietnam; Became chairman in January; vicepresident, Warner Cable (QUBE), 1976; vice president,pay -TV, Buena Vista Distribution; formed Marnell Associ-ates, cellular phone interests, out of which grew Gold 'N MCommunications, TV/film production, 1980.

Marcovsky says Nostalgia,established in 1985, was histori-cally under -capitalized. Pledgedto put more funds into originalprogramming aimed at over -45audience. With about 9 millionsubscribers, channel has dou-bled its base since January1989.

Marcovsky will pursue affiliatesby beefing up sales staff andconvincing operators that its orig-inal lifestyle programming-funded through joint ven-tures-will appeal to hard -to -reach older adults. Hiring of LBSCommunications as national adrep gives credibility, he says.

44 CHANNELS / AUGUST 13. 1990



ORION PICTURES CORP.: TV production and syndica-tion, producer and distibutor of films. 1989 revenues:$468.9 million.GARY NARDINO, chairman and CEO, Orion Television;54; Seton Hall Univ., BA; Joined Orion in 1989; startedas agent, 1959; senior v.p., ICM's New York TV depart-ment; then head of William Morris' New York TV depart-ment; joined Paramount Television as president, 1977;left in 1983 to produce movies and cable first -run.

OSBORN COMMUNICATIONS CORP.: Five TV stations,17 radio stations, partly through private subsidiariesNorthstar Television, Fairmont Communications; Muzak;cable TV to hospitals. 1989 revenues: $19.4 million.FRANK D. OSBORN, president and CEO; 43; Univ. ofPennsylvania, BA, Wharton School of Business, MBA; Lieu-tenant, U.S. Navy; formed Osborn, 1984; v.p., finance &administration, NBC Radio, 1978; v.p./g.m., WYNY radio,1981; senior v.p., radio, Price Communications, 1983.

OUTLET COMMUNICATIONS: Two TV stations in Colum-bus, Ohio, and Providence. 1989 revenues: $99.3 million.DAVID E. HENDERSON, chairman/pres./CEO; 62; Univ.of Virginia, advanced management program;Producer/director WFIL Philadelphia; Gray & Rogers Adver-tising, account exec.; sales and management at WBZBoston, KYW Philadephia, WJZ Baltimore; president ofGroup W Productions, 1969; president of Outlet Broadcast-ing since 1972; CEO, president and chairman since 1989.

Nardino, hired to revitalizeOrion's TV production arm, hada brutal first year. Crimewatch,The New Hollywood Squares andSunset Beat died; Equal Justicesurvives as midseason replace-ment. Nardino's connectionshelp attract talent and deals.Formed Orion TV International.

Osborn won raves from analystslast year by paring his debt andselling assets just prior to thedownturn in the media market.He further reduced the com-pany's risk by buying into andmanaging private TV and radiocompanies.

"Our revenue performance hasbeen disappointing," says Hen-derson, "the Northeast particu-larly, but it's our belief that theworst is over." While company lia-bilities have been reduced, rev-enue targets were not reachedexcept at the Washington, D.C.,radio station, since sold.

OUTLOOK

Nardino says his priority is to getOrion's product flowing, and hehas signed sought-after produc-ers with network commitments.Rumors persist, however, thatOrion majority shareholder JohnKluge wants to sell, a move thatcould disrupt all current plans.

Paring debt allows Osborn toform private subsidiaries in theentertainment area outside ofstations, such as his hospitalcable venture. "I see the commu-nications industry going towardsan enormous number of alterna-tives for consumers, a tremen-dous number of services."

The worst may be over, but toolate for Outlet. Its two UHF TVstations and two radio stationshave been sold, leaving twoVHFs. According to Henderson,"[Outlet's] current assets willmost probably be sold in thenear term." If not, Outlet willhave to restructure.

PARAMOUNT COMMUNICATIONS: Paramount Pictures,Paramount Pictures' Television Group, Paramount HomeVideo, 83.3 percent of six TV stations, movie theaters, MSGNetwork, half of USA Network. 1989 revenues: $3.39 billion.MARTIN S. DAVIS, chairman & CEO; 63; offended CityCollege of New York, New York Univ.; With Paramountsince becoming director of sales and marketing in 1958;became senior vice president, 1969; elected CEO, February1983; became chairman of the board in December 1983.

Mixed results for feature filmshave weakened stock price.Paramount will have eight shows,three returning, on fall's networkprime -time, plus three midsea-son replacements. First -run andhome video are also strong.Stake in stations upped to 83.3percent.

The acquisition of the TVXBroadcast Group, says Davis,"broadens our participation inthe television industry and pro-vides a strong base for expan-sion." Paramount's "unprece-dented cash assets give us theability to move quickly as condi-tions merit."

PARK COMMUNICATIONS: Seven TV stations, 19 radiostations, newspapers and other publications. 1989 rev-enues: $152.5 million.ROY H. PARK, founder and chairman; 80; North CarolinaState, BA; Bought first TV station, 1962; held various edito-rial jobs, including owning two national magazines, 1930-48; formed Hines -Park Foods, advertising arm of DuncanHines, 1948; by 1977 owned seven TV, 14 radio stations.

"We're pushing news on the sta-tions," says Park. "Why should youhave to wait until the network's 6or 11 P.M. news to find out whathappened today? So we'reputting on earlier newses. News issomething you can do locally andput your own imprint on it."

"We're looking at acquisitions,"says Park, "but we don't want tobuy something that's going torun in the red for a while." Six ofthe seven stations are strategi-cally located in the rapidly grow-ing Southwest.

PLAYBOY ENTERPRISES: Entertainment group includesPlayboy at Night pay -per -view and pay-cable services,home video, Alta Loma Productions; Playboy also ownspublishing and licensing/merchandising groups. 1989 rev-enues: $166.2 million.ROBERT FRIEDMAN, president, Entertainment Group; 34;Vassar College, BA, Columbia, MBA; Named president in1989; joined Warner -Amex Satellite, 1981; became seniorv.p., marketing, promotion for MTV Networks, 1988.

Reposition of faltering pay-cableservice to PPV streamlined oper-ations and cut costs. Began sell-ing programming to Europeanmarkets and networks. AfterHours, a joint syndication ven-ture with Spelling Entertainment,will return revamped in 1991after a dismal season.

Friedman's plan is to emphasizethe Playboy trademark "to cutthrough the clutter on TV." Thatmeans a movie -of -the -week onone of the Big Three this fall,increased original programmingon the PPV service, and moreproduction from Alta Loma withan eye to overseas.

PRICE COMMUNICATIONS CORP.: Three TV stations, sixradio stations, outdoor media, legal journals and newslet-ters, cellular telephone services. 1989 revenues: $67.3million.ROBERT PRICE, president; 57; New York Univ., BAColumbia Univ. Law; Took Price public, 1982; served asAssistant U.S. Attorney; ran John Lindsay's first N.Y.C. may-oral campaign, Nelson Rockefeller's presidential bid; exec.v.p., Dreyfus Fund; general partner, Lazard Freres, 1972.

Company posted losses in 1989,but Price says that reducing debtand waiting out the currentslowdown are part of regularbusiness cycle: "I saw similarconditions before, during thelate '70s, and I believe this isstill a very good business."

Price is looking to cellu ar tele-phone business for big growth incoming years, and formed PriCel-lular with Time -Warner. 'We'll beputting a lot of time into cellular,"Price says. "It's a new tecnnology,the licenses are available-it's awhole new ballgame."




PULITZER PUBLISHING CO.: Seven TV stations, tworadio stations, three daily newspapers. 1989 revenues:$402.2 million.KEN ELKINS, president, CEO of Pulitzer Broadcasting Co.;53; two years at Univ. of Nebraska; Named to current posi-tion, 1982; part-time cameraman KEN Omaha, 1960;engineer, 1961; chief engineer, 1967; general manager,KDUB Dubuque, 1970; operations manager, KEN, 1972;g.m., 1975; g.m. of Pulitzer's KSDK St. Louis, 1980.

Following conservative course ofwhat Elkins calls "orderly expan-sion," Pulitzer sold Fort Wayne'sWPTA to support purchase ofWDSU in the larger New Orleansmarket. While struggling to holddown operating costs, Pulitzerhas remained financially stableand reduced its debt.

Although Elkins says Pulitzer willalways entertain thoughts ofacquisitions, look for the com-pany to continue its conservativeagenda of decreasing debt.Local news will remain the thrustof Pulitzer's TV operations whileElkins concentrates on expand-ing the radio division.

QVC NETWORK INC.: Electronic retailing, limited manu-facturing and mail order. 1989 revenues: $453.3 million.JOSEPH M. SEGEL, chairman and CEO; 59; Univ. ofPennsylvania, BS, economics, Wharton School of Business;Founded QVC, 1986; previously founded and led a varietyof entrepreneurial ventures, including Presidential Airways(founded in 1975, sold in 1980) and The Franklin Mint(from which he retired in 1973).

QVC more than doubled in sizeby acquiring CVN. Homesreached grew from 16 million to36 million. At the same time, 30of the largest MSOs extendedcarriage agreements to years2004-5, in exchange for convert-ible preferred stock at a favor-able price.

Sales doubled last year throughCVN purchase, and Segelexpects another doubling beforesettling into 20 percent annualgrowth. "We're avoiding promo-tions," he says, "and focusing ondeveloping awareness of the pro-grams, then offering the bestvalue and service."

REEVES ENTERTAINMENT: TV production, video servicesand equipment. 1989 revenues: $79.3 million.MERRILL GRANT, chairman and CEO; 57; City College ofNew York, BA; Columbia Graduate School of Business, MA;Benton & Bowles Advertising, from trainee to head of pro-gramming, 1957-1970; senior v.p., Grey Advertising;senior v.p., Viacom; producer, That's Incredible; joinedReeves, 1979; president and CEO, Reeves Entertainment;president and COO, Reeves Communications.

Grant blames volatile program-ming market and 1989 buy outby Thames Television for a "hecticand somewhat disappointing"year. Thames' capital shouldsolve Reeves' money problems,Grant says, adding Reeves wasconcentrating as much on sellingitself as selling shows.

Reeves' syndication hopes restwith CBS' Doctor, Doctor and itsoff -net financial workhorse, Kate& Allie. The Thames buy out willallow Reeves to adapt Thamesconcepts for American TV. Withtwo shows in production, Grantis also aggressively pursuingcable and foreign ventures.

REPUBLIC PICTURES CORP.: TV production and syndica-tion, home -video distribution, theatrical films. 1989 rev-enues: $46.5 million.RUSSELL GOLDSMITH, chairman and CEO; 40; HarvardUniv., BA, business, Harvard Law School; Named to cur-rent posts in 1986; founding partner of law firm specializ-ing in entertainment law; COO and director of LorimarInc.; founded The Paragon Group investment partnership,which acquired interest in Republic.

Republic profited from packag-ing vintage TV shows andmovies for syndication, and alsoexperienced the first significantrevenues from internationalsales of Beauty and the Beast.Home video and license feeshelped offset failed projects suchas the canceled On Trial.

Goldsmith plans to focus effortson miniseries, TV movies andhalf-hour comedies, giving hour-long dramas low priority. A jointventure with United Artists Enter-tainment Co. provides fundingfor new productions, and Repub-lic will continue packaging showsfrom its library for syndication.

SPELLING ENTERTAINMENT INC.: Aaron Spelling Pro-ductions, Laurel Entertainment and Worldvision Enterprises;46 -percent -owned by Great American CommunicationsCo. 1989 revenues: $144 million.JULES HAIMOVITZ, president/COO; 39; Brooklyn Col-lege, BA, MA; Named president/COO, 1989; statistics andaudience research, ABC, 1971; director, planning/adminis-tration for pay TV, Viacom, 1976; president, Viacom enter-tainment group; president, Viacom networks group.

While many in Hollywood saySpelling is in a tailspin,Haimovitz asserts that "we're avery healthy company. We haveone of the best balance sheetsin this business." The companyhad been on the block until July.

Haimovitz points to Spelling'sagreement to distribute Lynch -Frost Productions' shows TwinPeaks, American Chronicles asproof of future potential. A firmbeliever in international distribu-tion, Haimovitz hopes to fostergrowth through Worldvision.

STAUFFER COMMUNICATIONS INC.: Seven TV stations,five radio stations, newspapers, shoppers and printingservices, computer library systems, computer services.1989 revenues: $132.6 million.GERALD N. HOLLEY, vice president, Stauffer Broadcast-ing; 51; Baker Univ., BA; In current position since 1977;WIBW-TV, Topeka, booth announcer, 1960; promotionmanager, 1962; rose through Stauffer radio managementjobs until 1969, when appointed g.m. of WIBW.

Stauffer has spent to improveequipment, news and program-ming at stations, Holley says.Company's profits fell slightlybecause of spending to rebuildrecent acquisition KCOY-TV inSanta Maria, Calif., and a newtransmitter for KMIZ-TV inColumbia, Mo.

Holley says that efforts focus onbuilding current holdings. "Untilwe have all our balls in the air,we're not interested in growth.We took over properties with noequipment, no background, nonothing. You don't fix thatovernight."

TELE-COMMUNICATIONS INC.: Largest cable MSO inthe country, with 8 million owned or controlled sub-scribers, interests in a number of cable networks; major-ity -owns theater group. 1989 revenues: $3.0 billion.JOHN C. MALONE, president/CEO; 49; Yale, BS, JohnsHopkins, MS, PhD, operations research, New York Univ.,MS; Named CEO in 1973; economic planning and R&D,Bell Labs/AT&T, 1963; group v.p., General Instrument,1970.

TCI is one of the first MSOs totake preventative action to wardoff cable reregulation. Earlier thisyear, Malone announced that TCIwould spin off its programmingholdings and some systems intoa separate company. Major inter-est in regional sports services andPrime Network.

Industry leader Malone preparesfor reregulation while trying tostave off draconian measures.Unbundling of some basic net-works and "lifeline" services areseen as attempts to show he'sconcerned about rates. Seniorv.p. Peter Barton heads spin-off,but Malone remains in charge.

46 CHANNELS ' AUGUST 13, 1990



TELEMUNDO GROUP INC.: Spanish -language network,six owned stations (including Puerto Rico) and 22 affili-ates. 1989 revenues: $116.4 million.SAUL P. STEINBERG, chairman and CEO of Telemundoand founder, chairman and CEO of Reliance Group Hold-ings, Telemundo's parent; 50; Univ. of Pennsylvania, BS;Founded Leasco Data Processing Equipment Corp., 1961;acquired Reliance Insurance Co., 1968; began acquiringstations and building Spanish -language network, 1986.

Heavy debt and slower thanexpected ad growth in the His-panic market caused Reliance toinfuse Telemundo with cash.Network increasing its quota ofU.S.-produced programming tohelp lure new advertisers.

Steinberg anticipates profitabilitywithin two or three years. Expectsnetwork to benefit from newnational Nielsen data, and is get-ting more involved with attractingnational advertising business:"We must make programmingthat's more germane to the His-panic condition in the U.S."

TIME WARNER: Interest in three MSOs: American Televi-sion & Communications (82 percent), Paragon Communi-cations (50 percent), Warner Cable (100 percent); HomeBox Office, TV production, libraries, interest in WhittleCommunications, Turner Broadcasting System; magazineand book publishing. 1989 revenues: $10.78 billion.STEVEN J. ROSS, chairman and co -CEO; 62; RogerSmith College, BA; Named chairman in May after servingsince July 1989 as co-chairman and co -CEO, followingmerger of Warner into Time; founded WCI in 1961, thenknown as Kinney Service Corp.; took company public,1962; acquired Warner Brothers Inc., 1969.NICHOLAS J. NICHOLAS, president and co -CEO; 50;Princeton Univ., AB, Harvard Business School, MBA;Named president of Time in September 1989 and co -CEO in May; joined Time in 1964; served in variouscapacities, including CEO of Manhattan Cable, chairmanand CEO of HBO, CFO and executive vice president ofTime.

The merger between Time andWarner would have produced anunder -leveraged media giantbut for Paramount Communica-tion's eleventh -hour attempt topurchase Time, which forcedTime to acquire Warner as atakeover defense, resulting in ahighly leveraged operation. Still,analysts note that the companyhas adequate interest coverage,and certain accounting conven-tions practiced by the companytend to downplay earnings andworth of assets. Its cable opera-tions are massive and producehealthy cash flow, and the syndi-cation arm is strong.

Time Warner must reduce debt,and looks to cable and syndica-tion, sources of steadiest cashflows. It isn't afraid to invest inefforts by known high -rollers: It

has formed a partnership withPrice Communications as anentry in the cellular telephonefield. It offered to underwritePathe Communications Corp.'sattempt to purchase MGM/UA,though withdrew when Pathecouldn't close the deal. Mean-while, observers point out thatalthough merger agreementsays Nicholas eventually takescontrol, Ross is the dominantexecutive and shows no signs ofstepping aside.

TIMES MIRROR CO.: Four TV stations, cable MSO with1.1 million subscribers, newspapers, magazine anc bookpublishing. 1989 revenues: $3.52 billion.DONALD F. WRIGHT, senior vice president; 56; Univ. ofMinnesota, BS, mechanical engineering, MBA; Named tocurrent position in 1987; started at Minneapolis Star in1957, rose from assistant production director to executiveeditor; president and COO, Newsday, 1977; presidentand COO, Los Angeles Times, 1982.

Broadcast losses resulted fromsoft retail market on local leveland overall national slump, butalso from difficulty turningaround troubled St. Louis stationKTVI. MSO Dimension, with 62systems in 13 states, has seengrowth in penetration, revenuesand operating profits.

Company confronted broadcasttroubles with recent hiring of Carl"Bud" Carey, 44, as president ofbroadcast operations. Carey, for-mer general manager of WNBCNew York and KNBC Los Angeles,plans to compete by improvinglocal news and working to attractnon-traditional advertisers.

TURNER BROADCASTING SYSTEM: Owns basic -cable net-works CNN, Headline News, TBS SuperStation and TNT; pro-duces, syndicates, licenses TV programs; owns Atlanta Braves,Atlanta Hawks, real estate. 1989 revenues: $1.1 billion.R.E. "TED" TURNER, chairman/president; 51; attendedBrown Univ.; account executive, Turner Advertising Co.,president/COO in 1963; purchased Atlanta indie WTBS,began national feed to cable systems, 1976; started CNNin 1980, Headline News in 1982, TNT in 1988.

Thanks to Turner's knack for find-ing successful programmingniches, TBS is inching towardsprofitability. Superstation, CNNand TNT perform strongly, helpingto offset Turner's indulgences (i.e.the Braves baseball team, peren-nial cellar -dwellers). The GoodwillGames were a major risk.

The flamboyant Turner hasembraced ecology, putting mil-lions behind Captain Planet. He'snever been conservative as abusinessman either. A newregional sports net, which maysiphon events from TBS, launchessoon, and he's paid Columbia$22 million for a film package.

TVX BROADCAST GROUP INC.: Owns six stations,including four major market independent stations. 1989revenues: $130.5 million.JOHN TRINDER, president and CEO since 1988; 49;Univ. of Bridgeport, BS; sales executive at WTAR-TV inNorfolk, Va., 1970-1979; general sales manager, thengeneral manager WTVZ Norfolk, also v.p. and sales direc-tor for (TVX founder) Television Corp. Stations, 1979-1983; TVX executive v.p. and COO, 1983-1987.

Last year Trinder completedTVX's recapitalization plan todivest itself of five small andmid -sized stations with negativecash flow. Aided by the Fox phe-nomenon at its three Fox affili-ates and Arsenio Hall at all itsstations, TVX registered double-digit revenue growth.

Credited for keeping TVX togetherduring its recapitalization, Trinderthis year should reap the satisfac-tion of a substantial financialupturn -50 to 60 percent cashflow growth, says chief financialofficer Gray Kiger. Now he facesnew majority owner Paramountloading up the TVX board.

UNITED ARTISTS ENTERTAINMENT: Third -largest cableoperator with more than 2.6 million subscribers; movie the-aters. 1989 revenues: $1.2 billion.STEWART D. BLAIR, vice chairman, CEO, director; 40;Univ. of Glasgow, MA, economics and political science;Named CEO of UA in 1986, became vice-chairman ofmerged UA-United Cable company, 1989; joined Tele-Communications Inc. as director -financial and operationsdevelopment, 1981; v.p., 1982; senior v.p., 1985.

The merger with United Cableand the acquisition of Daniels &Associates' systems last yearracked up huge debt. Blair isattacking the debt by selling offassets, mostly theaters, to thetune of more than $400 millionsince the merger.

Contrary to UA's pre -mergeraggressive acquisition strategy,Blair will continue actively sell-ing assets to lower debt. Blairwill also focus on expanding thecompany's cable operations inthe U.K.




UNITED TELEVISION: Majority -owned subsidiary of Chris-Craft, owns and operates five TV stations. 1989 revenues:$106.9 million.HERBERT J. SIEGEL, chairman, CEO, also chairman, presi-dent of Chris-Craft Industries; 62; Lehigh Univ., BA;Named chairman, 1982, CEO, 1983; president, chairmanGeneral Pictures Corp., 1960; chairman, Baldwin -Mon-trose Chemical, 1960, merged into Chris-Craft, 1968.

Sale of WCI stake dramaticallyimproved firm's finances, virtuallyrelieving it of long-term debt.Four of the five stations postedmodest revenue growth, and thefifth, KUTP Phoenix, improved itsratings, mostly due to the popu-larity of Phoenix Suns basketball.

Rising programming costs causedoperating income to decline lastyear, but with the company'sexisting investment in program-ming and the cost of program-ming appearing to moderate,operating income should im-prove over the next few years.

VESTRON: Film distribution, film production, home -videostores. 1989 revenues: $236.2 million.AUSTIN 0. FURST JR., chairman/CEO; 47; Lehigh Univ.,BS; Chairman of the board and CEO since Vestron'sinception in 1981; president of Computer Television Inc.;v.p., programming HBO, 1976-1979; exec. v.p. of HBO,1979-1980; president and CEO of Time Life Films Inc.,1980-1981.

Vestron revenues traditionallycame from home -video distribu-tion. Major program suppliersincreasingly distribute featuretitles themselves, cutting intoVestron's business, which it hasessentially abandoned. Vestron's1986 move into low -budget fea-ture -film production has failed.

Vestron still owns rights to pro-duce a Dirty Dancing sequel, butfinancial realities prevent it.Vestron will have to seekbankruptcy protection if not soldor merged, so is trying to sell allassets. LIVE Entertainment pro-poses to acquire entire companyin return for equity securities.

VIACOM INTERNATIONAL INC.: Five TV stations, MSOViacom Cable with 1.23 million subscribers, MTV Net-works, Showtime Networks, Showtime Satellite Network,interest in Lifetime. 1989 revenues: $1.44 billion.FRANK J. BIONDI, president and CEO; 45; PrincetonUniv., BA, Harvard Business School; Joined Viacom, 1987;started at Shearson Lehman; director, business affairs,Children's Television Workshop; joined HBO, 1978, namedchairman, 1984; CEO, Coca-Cola Television, 1985-1987.

Rigid cost controls and the sale ofassets (interest in Orion Pictures,two regional cable systems) per-mitted company to show stronggrowth during 1989, leaving itwith reduced debt and stream-lined operations. Last year sawViacom achieve nearly completerecovery from 1987 LBO.

Biondi associates say his goalwas reducing debt so Viacom canconcentrate on using earningsfrom Cosby syndication and MTVNetworks to build productionflow and improve Showtime Net-works. "Frank wants us ready togrow, ready to jump on opportu-nities," says a Viacom executive.

VIDEO JUKEBOX NETWORK: Interactive music TV ser-vice operating on 66 cable systems and 34 low -power TVstations. 1989 revenue: $3.8 million.ANDREW H. ORGEL, president and CEO; 38; IthacaCollege, BS; Came to VJN in 1988; sales manager, FMnational sales for CBS, 1974; vice president, WarnerAmex Satellite Entertainment Co., 1980; vice president,affiliate sales and marketing, MTV Networks; same posi-tion, Arts & Entertainment Network, 1984.

Operating units increased tenfoldsince early 1989, allowing 7.5million households to buy videoson demand via telephone. Hiredbroker Communications EquityAssociates, which is affiliatedwith VJN Partners, the company'sprincipal owner, to find a strate-gic partner or equity investor.

Orgel, known for start-up exper-tise, plans a slew of narrowcastproducts. Predicts "greater indus-try emphasis on localized pro-gramming and viewer choice."Plans VJN expansion and "bring-ing out other niche programmingconcepts tailored to the needs ofindividuals and communities."

WALT DISNEY CO.: The Disney Channel, one TV station,TV production and syndication, film production and distri-bution, amusement parks. 1989 revenues: $4.59 billion.MICHAEL D. EISNER, chairman and CEO; 48; DenisonUniv., BA; Joined Disney in 1984 at current position;joined ABC as manager of talent and specials in 1966,rose to senior vice president for prime -time productionand development; president and COO, Paramount Pic-tures Corp, 1976.

Banner year overall, but TV pro-duction division didn't deliver anew prime -time hit and DisneyChannel still struggles for audi-ence. First efforts in syndicationwere successful, and Eisner'sdecision to revive animation paidoff big with Chip n' Dale's RescueRangers and DuckTales.

Eisner is enthusiastic about firstbroadcast venture, Los Angelesindependent KCAL. Other big TVbuy, Henson Associates Inc., washurt by the death of founder JimHenson. Company is focused onEuropean theme parks andmovies, but Eisner is looking tosyndication to boost TV operations.

THE WASHINGTON POST CO.: Four TV stations, Post -Newsweek Cable, and newspaper and magazine publish-ing businesses. 1989 revenues: $1.44 billion.RICHARD D. SIMMONS, president and COO since 1981;55; Harvard College, Columbia Univ. Law; At Dun & Brad-street as president of Moody's Investors Service, presidentof D&B Inc., vice chairman and director, 1969-1980; alsov.p. and secretary of Southeastern Public Service Co. andassociate lawyer at Satterlee and Stephens law firm.

Company experienced a rough1989, hurt particularly by weaknational sales, although operat-ing income was bolstered by sta-tion cost cutting. Operatingincome grew more than a quar-ter at its cable -system operations,acquired four years ago fromCap Cities for $350 million.

Benefiting from the dominance ofits Miami ABC affiliate, WPLG,and the highest -rated NBC affili-ate in the nation's top ten mar-kets, WDIV in Detroit, Simmonsanticipates modest growth thisyear. He is encouraging invest-ment in new cable franchises andcable development in the U.K.

WESTINGHOUSE BROADCASTING CO.: Owns five TVand 22 radio stations, Group W Productions and Group WSatellite Communications. 1989 revenues: $12.84 billion.BURTON B. STANIAR, chairman and CEO since 1987;48; Washington & Lee Univ., BA, Columbia Univ., MBA;joined Group W Cable in 1980 as senior v.p., marketingand programming, became president and COO, 1982;mid -'70s owned and operated Artcraft Concepts after jobsat Colgate-Palmolive Co. and Church & Dwight Co.

Forgetting House Party (the now -dead first offspring of Group Wand NBC Productions), Group Whad a big year, acquiring eightmajor -market radio stations,expanding into European pro-gramming and pay -per -view andinking new sales and marketingdeals with cable networks.

With formation last month ofFuturlmages, a joint film -makingenterprise of Group W and Euro-pean companies Telelmages andNavas, Staniar continues strategyof expanding into internationalproduction and syndication; sayshe intends to broaden Group W'sinternational presence.


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MEDIA DEALS

Leveraged Cop-out by Cheryl HeutonYou can't blame the cold new realities of the deal market on HLT rules.

The popular explanation for thelack of media deals is that loanmoney vanished when financial

regulators issued a new definition of"highly leveraged transaction" last year.The theory also holds that regulatorswill soon permit banks to drop mostmedia loans from the HLT category.Then loan money will flow and priceswill soar.

In other words, 1988 will return.That theory's full of holes. HLTs are

the most visible reason for tight credit,but other factors are at work too. "The'80s are over, and it's not just media,"says Fred Pickering, director ofCitibank N.A.'s media department.An HLT is a loan that leaves a com-

pany's debts far in excess of assets.Banks must list loans that meet certainliability -asset ratios, and regulatorsfocus unwelcome attention on HLT-heavy portfolios. The stock marketacknowledges them too, usually byslamming the stock values of guiltybanks. Consequently, banks can't getaway from HLTs fast enough.

Earlier this year, rumors said the fedswould shift the rules to permit perform-ing media loans to be dropped fromHLT lists, even if they met the liabilitycriteria. There is currently little evi-dence such relief is coming, despiteindustry lobbying. Regulatory agenciesdeny plans to spare specific industries."Regulators have just been through theharrowing S&L collapse," says a bank-ing analyst. "There is little constituencyfor leniency."

Moreover, the economic slowdownmakes many loans less solid as compa-nies get hit by reduced cash flow. Muchof the current capitalization is actuallydesigned not for new deals, but forrestructuring the old highly leveragedones to make them affordable. "Whatwe're doing is dealing with the complica-tions left over from the high -yield bondcapital structures," says Gregg Seibertof Merrill Lynch Capital Market. Seib-ert says two kinds of companies seek torecapitalize: Some want to take advan-

`Regulators havejust been through

the harrowingS&L collapse.There is littleconstituencyfor leniency.'

tage of improved credit, but others arein trouble because debt costs are out-stripping cash flow.

Despite the scramble to find relieffrom debt costs, many insist that indus-try loans remain strong overall. Cableproponents, like broker Brian Deevy ofDaniels & Assoc., argue that HLT rulesunfairly target cable, where values relyon cash flow, not assets. Yet there hasnever been a major cable default.'We've been unjustly picked out of loanportfolios," Deevy says.

Still, some systems are indeed demon-strating the trouble a highly leveragedoperation can encounter. Take MarylandCable Corp., which lost $5.8 million dur-ing the first quarter of 1990. Purchasedby ML Media Opportunity Partners in1988 for around 13 times cash flow, it asstruggling with finance costs (See"Reports" in this issue.)

Deevy acknowledges that there will bedefaults, but says they shouldn't taint anentire industry. The question forbankers remains whether MarylandCable is an anomaly, or a harbinger.

Even optimists admit, however, thatthere won't be more deals at 11 or 12times cash flow. "Those prices were setby buyers with lots of leverage," saysDavid J. Londoner of WertheimSchroder & Co. "Now lenders are reluc-tant to go beyond five or six-maybeseven times for a very good property.But sellers are still holding out for 11times. If HLT definitions are removed,we'll see some more activity, but not theprices we saw nine months ago."

Clearly, if HLTs alone were restrain-ing an otherwise hot market, then for-eign banks, insurance companies andother institutions would step in. They'renot offering the higher multiples, either."Let 'em have the business if they canmake it work," says Citibank's Picker-ing, "but they have the same considera-tions we do."

One of those considerations is reregu-lation. Cable buyers can't ignore thechance that revenues will be constrainedby rate caps and customer service rules.And capital investment expenses con-tinue to be high. Plus, worries aboutcompetition from phone companies andthe diversion of money into cellular havetheir impacts.

Considering these factors and theHLT rules, buyers and lendersmust think more about value, and

depend less on speculation. Says Ken-neth Berents of Alex Brown & Sons,"Regulations have put the financialplayers out of business." Does thatmean prices during the 1980s were oftenunrealistic? "In retrospect, yes,"Berents says.

"HLTs are over, but deals get done,"says Pickering. "They always did, andthey always will. There's lots of moneyout there for good companies with goodmanagement-when there's a goodchance of getting paid back."


EDITED BY MICHAEL BURGI

Affiliate Shares Still SufferWhether in total TV households, cable homes or non -cable homes,

network affiliates suffered viewer erosion compared to othertelevision programmers between Apri11989 and April 1990. Indieshave also been responsible for cutting into affiliates' shares, except

in cable homers,

STATIONS CABLEAffiliates Independents Public Basic Pay

(1990 viewing share/1989 viewing share)

Total TV Households

Mon. -Sun. 24 hours 55/59 23/23 3/3 18/15 7/6

Mon. -Sun. 8-11 P.M. 64/70 20/18 4/4 16/12 6/6

Cable Households

Mon. -Sun. 24 hours 42/45 20/21 2/2 26/24 19/18

Mon. -Sun. 8-11 P.M. 53/57 18/17 2/2 24/20 18/17

Ncn-Cable Households

Mon. -Sun. 24 hours 70/73 29/27 4/5 NA NA

Mon. -Sun. 8-11 P.M. 77/83 24/20 5/5 NA NA

Source: Nielsen Television Index, April 1990. NA -Not applicable.

ABPay Homes' Viewing Habits

Cable's rapid growth in the early '80s was driven in large part by pay cable'sappeal as a programmer of theatrical films. In 1986, however, pay cable's

viewing share dropped about 10 percent, possibly due to the explosion of homevideo that year. As pay tries to push its numbers back up, it could run intocompetition from home video again as sell -through giants like Batman and

Who Framed Roger Rabbit are bought and watched.

Year

mrwrfaver puy V IttYV 1,19 1-uw IL/ILI t v

in pay homes viewing in pay homes(minutes / week) (mir Ltes /week)

Average pay viewingshare in pay homes

1983 604 3,435 17.6

1984 610 3,496 17.4

1985 621 3,496 17.8

1986 557 3,420 16.3

1987 602 3,438 17.5

1988 636 3,458 18.4

1989 635 3,416 18.6

Source: Paul Kagan Associates, Inc., Nielsen, Channels.

r -WW1_ 111

TOP NETWORK SERIES

First 43 weeks of season, Sept. 18,1989, through July 15,1990

SERIES / NETWORK RATING / SHARE

1 Cheers/NBC 21.4/35

2 Roseanne /ABC 21.3/33

3 The Cosby Show/ NBC 21.0/36

4 A Different World/ NBC 19.5/32

5 America's FunniestHome Videos/ABC 18.9/32

6 Golden Girls/ NBC 18.4/33

7 60 Minutes/CBS 18.2/33

8 Empty Nest/NBC 17.8/32

9 The Wender Years /ABC 17.5/28

10 Grand/NBC 17.2/27

TOP BARTER SERIES

First 42 weeks of season, Sept 18, 1989, through July 8, 1990

SERIES /SYNDICATOR RATING

1 Wheel of Fortune / King World 13.9

2 Jeopardy! /King World 12.3

3 Star Trek: The NextGeneration/Paramount 9.8

4 The Opreh Winfrey Show/King World 9.2

5 The Cosby Show/Viacom 9.0

6 A Current Affair /20th Century Fox 8.4

6 Wheel of Fortune (weekend) /King World 8.4

8 Entertainment Tonight/Paramount 8.2

4 Universal pictures DebutNetwork /MCA TV 7.8

10 Columbia Night at the Movies /Columbia 7.4

TOP CABLE NETWORKS

Averoge ratings , projected households, June 1990

NETWORK 7 A.M. TO 1 A.M. PRIME TIME

1 TBS 1.6 / 875,000 2.0/1,094,000

2 USA 1.5 /796,000 2.4 / 1,273,000

3 ESPN 1.0/561,000 1.9 / 1,066,000

4 Nickelodeon 1.0/518,000 .9/466,000

S TNT .9 /423,000 1.4 / 658,000

6 CNN .7/387,000 1.0/553,000

7 MTV .7 /363,000 .6 / 311,000

8 FamilyChannel .6 / 298,000 .8/397,000

9 TNN .5/273,000' 1.1 /576,000

10 Lifetime .5/248,000'' .8 / 396,000

9 A.M. to 3 A.M. **Lifetime reports on °Monday -Saturdaybass. Note: Coble ratings ore percentages within the varyingpopulations that con receive each network. Networks areranted by projected number of households rather than ratings.Scum Nielsen Media Research data.


DATABASE

June

HOME VIDEO'

Top Videocassettes/Rentals1990

TITLE / PUBLISHER % TOP 50

1 Back to the Future II /MCA 7.02 Look Who's Talking /RCA/Columbia 5.63 The Fabulous Baker Boys /IVE 4.64 The Little Mermaid /Disney 4.2

5 Harlem Nights/ Paramount 4.1

6 Black Rain/Paramount 4.07 Sea of Love / MCA 3.9

8 Christmas Vacation /Warner 3.8

9 Tango and Cash /Warner 3.5

10 Dead Poet's Society /Touchstone 3.5

11 Sex, Lies and Videotape /RCA/Columbia 2.9

12 Field of Dreams/MCA 2.5

13 Next of Kin /Warner 2.5

14 The Abyss /CBS/ Fox 2.5

15 Dad/MCA 2.4

16 Parenthood / MCA 2.3

17 Steel Magnolias/RCA/Columbia 2.3

18 Always /MCA 2.2

19 The Bear / RCA /Columbia 2.2

20 Honey, I Shrunk the Kids/Touchstone 2.0

Top Videocassettes/SalesJune 1990

TITLE / PUBLISHER % TOP 50*

1 The Little Mermaid / Disney 47.6

2 New Kids on the Block: Step by Step /CMV 3.1

3 Honey, I Shrunk the Kids/Touchstone 2.6

4 Lethal Weapon II / Warner 2.4

5 Indiana Jones and the Last Crusade /Paramount 2.4

6 Top Gun /Paramount 2.3

7 Harvey /MCA/Universal 2.0

8 The Wizard of Oz /MGM/ UA 1.7

9 Bambi / Disney 1.7

10 Lethal Weapon/Warner 1.3

11 Sink the Bismarck/CBS/Fox 1.2

12 Bugs Bunny's Wacky Adventures/Warner 1.1

13 Teenage Mutant Ninja Turtles:Cowabunga / Family Home Ent. 1.1

14 Road Runner vs. Wile E. Coyote /Warner 1.1

15 Back to the Future/MCA 1.1

16 Batman/Warner 1.1

17 Cinderella /Disney 1.0

18 Who Framed Roger Rabbit/Touchstone 1.0

19 Teenage Mutant Ninja Turtles: On theHalf Shell / Family Home Ent. 1.0

20 The Enemy Below/CBS/Fox 1.0

Source: Vicleodome Enterprises, Dallas. 'Title as percentage of top -50topes total volume.

Top Ten Network News Stories of 1989Despite the end -of -the -year rush to democracy in Eastern Europe, 1989's top news story covered

the exact opposite -the crushing of a democratic movement in China. According to AndrewTyndall, publisher of the Tyndall Report, the massacre and its aftermath were the top news story for

15 successive days in June. Other important stories, however, were overlooked. An article in theColumbia Journalism Review blasted all American news media for generally ignoring the wave ofdemocratic elections to the south, in Brazil and Argentina. Neither country's elections (the first in

decades) even reached Tyndall Report's top 50 listing. .

SubjectABC CBS NBC

(In minutes)Total

Chinese crackdown on student protest 228 284 253 765

Panama's Noriega under fire, ousted 156 180 155 491

East Germany's political reform:Berlin Wall opened 98 99 122 319

Iran -contra affair prosecutions 85 127 108 319

Exxon Valdez oil spill in Alaska 100 78 92 270

Abortion rights political debate 92 92 84 268

Drugs: Colombian cocaine cartel crackdown 67 94 98 260

Defense secretary John Tower nomination 81 81 75 238

Beirut hostages: Col. Higgins hanged 74 87 73 234

Israeli -Palestinian conflict 89 86 41 216

Source: ADT Research.

Growing UpLong the underdog of the broadcast industry, low -power television(LPTV) is slowly but surely establishing its own niche as a legitimatebroadcasting vehicle. It's also growing in membership: John Kom-pas, president of the Community Broadcasters Association (CBA,LPTV's industry association) estimates that 17 new stations aresigning on per month. Low power is also waging a struggle onCapitol Hill, trying to pass legislation placing its stations withinmust -carry guidelines. "Both the Senate and House Commercecommittees have given us much support," says Kompas.

With all this action surrounding low power, CBA commissioned ateam at Marquette University to conduct an annual survey of nearly100 LPTV stations across the country. Among the results, it wasfound that local advertisers (and to a lesser extent, national adver-tisers) are turning to LPTV as a low-cost alternative buy for theirproducts and services. Some other highlights from the survey:

An average 15 percent of advertising in 1989 came fromnational sources, compared to- 5 percent the year before. All otheradvertising is local.

Stations program an average of 29 percent of their schedulewith syndicated shows, purchased through barter, cash or a combi-nation.

Twenty percent of the stations surveyed are minority -owned,much higher than the 2 percent for full -power stations, accordingto the NAB. Here, minorities include Blacks, Hispanics, Asian -Americans and Native Americans.

Three out of four stations remain on -air 24 hours a day. Most of the stations do local programming, with an average of

24 percent of their schedule taken up by locally produced shows. Two thirds of the stations responding reported increasing

revenues.

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fanning for a high -definition tele-vision system in the U.S. moves onestep closer to completion this fall whenthe Advanced Television Test Center inAlexandria, Va., gets up and running.Representatives of the cable and broad-cast industries then kick off a year-long test of seven contending systems, aprocess expected to begin in December.Overseeing this $30 -million effort isRichard Wiley, chairman of the FCC'sAdvisory Committee on AdvancedTelevision Service. Wiley served asFCC chairman from 1974 to 1977, andis currently a senior partner in theWashington, D.C., law firm Wiley,Rein & Fielding. He recently discussedthe HDTV selection process with Chan-nels editors Janet Stilson and PennyPagano.

The Future Isn't NowThe timetable has slipped quite a bit.And the reason it's slipped is, numberone, the proponents weren't ready.Number two, the testing equipmentwasn't around. It's all being invented.We've been waiting for the very impor-tant piece called the format converter,which would make all these formats thesame, for purposes of evaluation.

So yeah, we've slipped. But now theFCC has given us a deadline of Septem-ber 30, 1992, to try to turn in a finalreport. We think that if we start testingthis year, by the end of the year, and ifeverything works well, we can do it. Butwhen I say "if everything works well,"keep in mind that we're sailing in anuncharted sea here. This equipment hasnever been manufactured before. Thisis just a whole new world.

Our main concerns are that the testing

May TheBest HDTVSystem Win

Richard Wiley's FCC committee will helpdetermine which HDTV standard the U.S. adopts.

Wiley and company have a tough job ahead.

procedures and the testing equipmentwork-and the laboratory systems. Andalso whether any of these systems reallygive us something better than we've hadbefore. Nobody knows that. We've had alot of talk. We've had computer simula-tions. But most of that stuff is taped. It'sall been redone. Over the air we reallyhaven't seen it. But now we're going tosee it under laboratory conditions.Hopefully, in a year, we'll be able todevelop a recommendation.

First, the objective tests. First, thehardware, the laboratory tests. Thenwe are going to work with Canadians onjoint, subjective tests. We're going tobring in experts, and we're going tobring in laypeople to look at these dif-ferent proponents. At the very end,probably the winning one we'll subjectto over -the -air testing, and confirm theresults of the objective and subjectivetesting.

Why are we doing it with Canada?Because there's a laboratory up there,there's some money up there, andthey're going to work in harmony withus. We're going to have both Americanexperts and Canadian experts working.

Apples, Oranges, BananasWe're going to test seven proponents.Two are enhanced systems, and five aresimulcast high -definition systems. Now,keep in mind, these proponents are fun-damentally different. You know, thetelevision set today is made up of 525lines, and it's read every other line. Soyou're really getting about 260 lines outof the television set today. The theory ofhigh -definition television is to doublethe lines of resolution, either by reading525 progressively, or doubling the num-

ber of lines to 1,050, or maybe 1,250, orwhat have you. These systems have dif-ferent formats. Some of them are, forexample, 1,125 lines, and some of themare 787 lines; some of them are 525 withevery line being read. Well, you're com-paring apples, oranges and bananas,basically. That's not easy.

Double VisionThe simulcast systems all require

another 6 megahertz channel. The con-cept of simulcast is that you continue towatch television just as you want, but ifyou buy a new television set, then youcan watch it in high definition. Everybroadcaster, in theory, would get twochannels. One he'd broadcast [in thecurrent National Broadcast SystemCommittee Standard], and the otherchannel he'd broadcast high definition.

Enhanced definition takes away theghosts that you have-ghost canceling.But it doesn't have any additional lines.

One argument is that it is going to bevery expensive for broadcasters to con-vert to simulcast. So maybe we ought tojust go with an enhanced system for thenext few years, until fiber optics becomeavailable, and that's good enough.

Other people say, "Well, how can wedo that? Our citizens will travel abroadto Japan and Western Europe; they'llsee satellite -delivered HDTV, they'll seea lot better system-and they'll want ithere." That's a decision the governmentwill have to make. We will make recom-mendations to the government. We willtell the trade-offs, economically, techno-logically and spectrum -wise, in pickingan enhanced system or a simulcast sys-tem. It's not a decision I should make; itshould be the government.


Where's the Channel Space?Keep in mind, the FCC has said, "Onlydeal with the spectrum already allo-cated to broadcast." We're not going tofind a new band [for the simulcast chan-nels]. So we are trying to find ways touse the spectrum more efficiently. Wethink we can do it. We think by lessen-ing the mileage between stations, bylessening the interference protectioncriteria, by having a more robust signal,we can use additional UHF channels.And we are going to have to use thoseUHF channels or else we're not goingto be able to give every broadcaster anadditional channel [for HDTV]. That's areal problem.

Until the FCC sets a standard, it'shard for stations and operators to makeany definitive plans for this. They don'tknow whether it will be enhanced orhigh definition. There are a number ofbroadcast and cable -industry associa-tions working to prepare for this com-ing transition. And it will be a transi-tion. We're not all going to suddenly goout and buy high -definition televisionsets.

Made in the U.S.A?All the companies with proponents haveAmerican affiliates, if you will. FaroudjaLaboratories is in California. It's con-trolled by a French guy who is natural-ized. I think he's now a U.S. citizen, orhe's becoming one. So how do you countthat? I don't know. Then the otherenhanced one is the David SarnoffResearch Center. The Sarnoff Labora-tory itself is U.S.-owned and it hasbackers that are partially foreign andpartially U.S. So how do you count that?Then you have NHK, clearly foreign.North American Philips has a simulcastsystem, clearly that's foreign. Then youhave the American systems: MIT,Zenith Electronics and General Instru-ments-which has the digital system.

Should the government try to assistU.S. industries in being competitive?That's a very controversial issue thatmay go beyond the FCC, involving theCommerce Department, probably theCongress and the Administration.

We are probably going to purchasemore high -definition television setsthan any other country in the world. Soa lot of people feel that the U.S. shouldplay an important role in the industrialaspects of this new technology, whichcould be a multi -billion -dollar industryin the future. Some people say $50 bil-lion a year. It's going to be a big deal.

What [FCC chairman] Al Sikes hassaid is that he is going to look to seewhether or not proponent systems aredoing R&D in the United States. Hethinks that will add to the future of tele-vision in this country. That's going to be

It's a big step.We aren't going to

take it lightly. To picka new standard for

television inthis country-hell,we haven't done it

for 40 years.'

important to him. We'll make recom-mendations not based on that, but that'san issue the FCC will decide. That's notsomething the Advisory Committeeprobably will spend a lot of time on.

Playing Catch-upThe Japanese are working very hard onHDTV They are starting over -the -airfield tests an hour a day, and they'llexpand that. The Western Europeansare making progress. So we're hustlingto catch up, because we are very farbehind on this. I think the AdvisoryCommittee has proved a spur to theindustry in this country to do some-thing. But we came to the party verylate. The Japanese have been workingon this thing for almost 20 years. Nowthey are working on a digital system. Soit may well be that a lot of the work thatwas done will be outmoded slightly [bythe time U.S. testing is completed]. TheFCC and chairman Sikes have said thatif something comes along that's revolu-tionary, we're going to have to open upour system and take somebody else.But we are planning to limit our consid-eration to these seven systems.

Hard Choices[The selection process] is going to bevery pressurized. Now, keep in mind,the Advisory Committee is made up of25 leaders of broadcast, cable, programproduction and set -manufacturing com-panies. They're all private -sector peo-ple with different interests. Along withthose 25 are hundreds of volunteers.

Then there's the testing laboratories.Some of the same people work in bothareas. But they are separate. The test-ing laboratories are funded by thebroadcast and cable industries. The the-ory is that you've got all these privateinterests; they're all competing againstone another, and that out of all the wel-ter of private interest, all operating in apublic mode, [is likely to come a fairevaluation].

So far [establishing a consensus has]been pretty good. But I think it willbecome more contentious. Inevitably so.If we can't make a recommendation ona single system, let's say, maybe we canrecommend certain things to the FCC.We'll help them in their decision. I thinkit will be hard, [but] I think it would beimpossible and inappropriate for a pri-vate -sector group to make this stan-dards decision for the country.

It's a big step. We aren't going to takeit lightly. To pick a new standard fortelevision in this country-hell, wehaven't done it for 40 years. So this isgoing to be a monumental decision forthe FCC to make in a very short timeframe. Will this all happen? I don'tknow. We're going to try and do it.

CHANNELS / AUGUST 13,1990 55

tsso't'''cl Crashing the Party

144vitt°n 1980, the Republicans took control of the Senate by defeating 12 Democraticincumbents. They won with the help of conservative political action committees(PACs); whose technique of buying television time independent of any candi-

date or party set a trend for the '80s. Through 1988, PACs had wracked up a totalof $72 million in independent campaign expenditures, virtually all of it on televi-sion. Dan Carol, head of opposition research for the Democratic National Commit-tee and source of the figures below, believes such spending will continue to rise.(The Republican National Committee does not keep comparable figures.)

Both candidate and station win with independent spending. Stations realize extrarevenue without triggering lowest unit rate or equal time requirements. Should aPAC use a picture of the candidate it supports in one of its ads, however, the equaltime requirement is applicable. PACs have proved that someone else's picture canbe more effective anyway-the National Security PAC paid for the controversialbut effective Willie Horton ads that helped sink Michael Dukakis' 1988 presidentialcampaign. The conservative PACs, though losing steam in the post -Reagan era,continue to spend more money, but the liberals have learned their lesson: TheNational Abortion Rights Action League bought ads that helped defeat abortionopponent Tom Miller in this year's Iowa Democratic gubernatorial primary.

Total for Democrats: $9,053,532 Total against Republicans: 2,212,249

$11,265,781

Total for Democrats: $2,665,103 Total against Republicans: 220,777

$2,885,880

Total for Democrats: $3,471,023 Total against Republicans: 361,990

$3,833,013

Total for Democrats: $2,193,494 Total against Republicans: 1,125,465

$3,318,959

Total for Democrats: $393,104 Total against Republicans: 426,915

$820,019

Total for Democrats: $330,808 Total against Republicans: 77,102

$407,910

araNDENTNDING

ON FEDERALELECTIONS

1980-1988Cumulative Spending:

$72,026,678

1 988 Totdl:

$1790,1 1 1

1986 Total:

$10,070,488

1984 Trotal:

43,2,412,659

1 982 Total:

$5,636,145

1980\Th/to':

$1 17_1275

Total ?or Republicans: $49,531,557Total against Democrats: 11,212,716

$60,744,273

Total for Republicans: $13,281,210Total against Democrats: 3,620,288

$16,901,498

Total for Republicans: $5,362,871Total against Democrats: 862,810

$6,225,681

II Total for Republicans: $18,181,709Total against Democrats: 911,991

$19,093,700

Total for Republicans: $872,255R Total against Democrats: 3,943,871

$4,816,126

Total for Republicans: $11,833,512Total against Democrats: 1,873,756

$13,707,268

Source: Democratic National Committee.


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