85-538 WHITE - CITV CLERK .
PINK - F�MANCE
CANAAS -DEPARTMENT GITY OF SAINT PAUL F1eci1N0. ' �
BLUE - MAVOR
� Ordin�nce Ordinance N 0. ��
Presented By
r-
Referred To E Committee: Date �� �'�
Out of Committee By Date
An ordin nce amending Ordinance No. 17071,
entitle , "An Ordinance granting a franchise to
Contine tal C blevision of Saint Paul, Inc. , its
success rs or assigns , to own. and operate and
ma.intai a Ca le Communications System in Saint
Paul, M nneso a, setting forth conditions accom-
panying the g ant of franchise, and providing
for the regul tion and use of said system,"
adopted Novem er 14, 1983.
THE COUNCIL F THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1.
That Or inanc No. 17�71, adopted November 14, 1983,
is amended 'n Art'cle II, Section 8 , so that the same sha 1
read as fo�l ws :
"Sectio 8. CTIVATION OF S�68AiB SUBSCRIBER NETWORK
CABLE
a. Upo the irst anniversary of the effective date
of is 0 inance and upon every anniversary
the afte , Company shall report to the City
on iliz tion of downstream and upstream
Subs riber Network capacity. Such report
shal iden ify all services being carried on
the ubscr'ber Network, the number of channels
util' zedt he number of hours per day each
chan el is utilized, and the number o€ channels
whic rema'n available for carriage of new
servi ces. Additionally, the report shall
iden ify a 1 e�asting cable programming
servi ces n t being carried on the Subscriber
COUNCILMEN Requested by Department of;
Yeas Nays
Fletcher
Drew [n Favor
Masanz
Nicosia B
Scheibel A gai ns t Y
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretar BY �� �' 'r���'��--' ������
By
Approved by Mayor: Date Approved by Mayor for Submission to Counc 1
By By
� � - . � �%F �=����'
• �7�39
Page 2.
Netw rk wi h an explanation of the reason why
each servi e is not being carried. Finally, the
repo t shall contain the Company' s recommendation
wit re�a to the need and a�propriate date for
act' atin �l�e-eeeex�.-8�.beer�. e�-P�e��ae�l�-eab�e
six een 6 additional downstream video channels
b. Aft r rev'ew of the Company's report and a public
hea in� o the matter, the City sha11 reasonabl
det rmine whether or not the eeee�.d sixteen 16
add tiona Subscriber Network ea��e-�e c anne s
are nee e . If the City makes a determina�ion
t�ia the eee�.d sixteen (16) additional Subscribe
Net ork e b�e-�9 channels are neede�., the City m
ord r the Company o ac iva e �l�e-eeee��.-Sn�ee�� e�
Ate� e��.-e b�e said channels and the Company shal
com ly wi h suc or er in an expeditious manner.
c. The Compa y sha.l l not apply f or ar�-��.e�eae e-��
. �a� s-e�.- l�e-ba9�e-e�'-ee9�e-���e��e�-�a��l�-��.e
ae�'�a��e -e�-�l�e-seeexd-St��ee��be�-A1e��ae��-eab�
a�- ��-��. e-a��e�-�ea�-9��-E6�-e€-�k.e-e��ee���e
�a -e�-� �e-6��.��a�ee an rate increase based u on
th costs involved in t e activation of the sixt en
a iona c anne s.
d. Fa' lure y the Company to comply with the City's
or er to activate the eeeea�-5�.�9e���e�-P1e��oae�l�
ea �e si teen 16) additional downstream channel
sh 11 su �ec e ompany o ranc ise revoca io
or the p nalties provided in Section 430.036 of
th City s Legislative Code, as the City deems
ap ropri te.
e. Th Com n sha.11 not a 1 for an rate increase
a e u n iti ation costs incurre irect r
in irec rior o a �� u on a i
ti na o eratin costs incurred as a resu t o
su h lit ation urin the eriod o time exten -
in rom ovem er o ri .
f. e Com n shall not a 1 to the Cit for an
a i�io 1 share use of exclusive u lic educ -
t'onal or overnment access c nnels rior to
e en o ear ive o is ranc ise,.
Section 2.
That rdina ce No. 17071 , adopted November 14, 1983 ,
is further amend d, in Article II, Section 10, paragrap
/
, • n
, ' '� /� �����[.� �
C ''
' /�,.?3 �I
Page 3.
a(10) by del ting aid paragraph a(10) in its entirety and
substituting in 1' eu and in place thereof, the following:
" 10 Fai ure to com 1 with the Cit 's order to
ac va e e six een a i iona own-
str am channels in accordance with Article
II Section .
Section 3.
That Or inanc No. 17071, adopted November 14, 1983 ,
is further a ended in Article III, Section 1, paragraph ( )
so that the ame s all read as follows :
"a. Com any s all construct a �.�.a� �sin l,_e cable;-4�A
P4Hs Subs riber Network with am-�i�iers s aced
at 50 MH . The Subscri er e wor s a e
cap e o carrying ene-�.x���e�.-��ae�.� -�e�.�-���4�-
sev nt -e ht 78) downstream and e�g��-�8� four
4 upstr am vi eo channels . Of this capacity,
ene Stsb9e ��er-N���aeri�-eab�e-�a��l�-ba�d�a�d�k-eqtta
�e ixty- wo (62) downstream and four (4) upstre m
��d e cha nels shall be activated durin� the con
str ction period as defined in this Ordinance.
Bt�.�'�.g-�1� -ee�9��tse��e�.-ge��ed;-6e�ga�.�-91�a}}
9g�'ee-�� �1�-�.et�.s��g9-�n�e-�19.e-9eee��-6t�bee��be�
Pde� e�l�-e ��e-�e-�ae����a�e-��e�a��a��ex-e�-e�ee
��e �es-a -�l�e-���te-��.e-seee��-8txbee���e�-ATe�6ae�
eab e-�9- e���a�e�.:--�'k.e-9eeen�.-6�.bse��be�-eab�e
�a�� -ba.�.�. ��.��.-eqt�a�-�e-a�.-a��.���e�.a�-e�x��-��ae
�e e��e -a��.-�ex�-�4�-t3.p9��eax�-��dee Sixteen
16 additional downstream channels shalrTe—
ac ivate t e om an as determined by the
Ci in ccor ance wi Article II, Section 8
of this rdinance."
Section 4.
That 0 dinan e No. 17071, adopted November 14, 1983 ,
is further mende , in Article I, by adding a section to
read as fol ows :
"Sectio 27. REPORTS. In addition to all other re o ts
re uir is ranc ise t e Com an s i e
e o owin wi e i er an e a e omm ni-
cation Offi er for t e Cit o Saint Paul:
. -
. - . � ,�� -.�:�:�
. �����
Page 4.
a. No ater han Se tember 30 1987 the Com an
s a ro i e o e i a com e e accoun in
o stem construction costs .
b. No ater han Se tember 30 1990 the Com an sh 11
ro i e t t e it a com ete accountin o act a
cos s o s em cons ruc ion o era ion an mai -
ten nce i com arison to ro 'ected costs of s st m
co truct'on o eration and maintenance. An
sa n s a cruin o e om an as a resu o
t e mo i ication rom ua to sin e z
ca e s a e resen e in suc accoun -in .
Su acco ntin shall further include a lan for
ut' lizat' n of all actual savin s or the enefi
o s s e su scri ers .
c. Sho ld t e Com an decide to raise subscriber
ra es i s all file its schedule of new rates
an the elevant ortions of t e minutes of
oar o irec ors or xecu ive ommi ee
me tin s at w ic suc rate increase was iscuss d.
Section 5.
This o dinan e shall take effect and be in force aft r
the public earin prescribed by law and 30 days after it
passage, ap roval and publication, and upon the Company'
�ritten acc ptanc thereof in form to be approved by the
city attorn y.
WMITE - CITV CLERK 1
PINK FI�f�`NCE CO11I�C11 !
CANARI'=DEPARTMENT ITY OF SAINT PALTL File NO. _✓ ��
BLUE -MAVOR
. �
O/ indnce Ordinance N 0. 7°?�9
Presented By
Referred To Committee: Date
Out of Committee By Date
Page 5.
ACCEPTANCE
Compa y acc pts and hereby agrees to be bound by th
amendments to th s franchise.
Date:
COUNCILMFN Requested by Department of:
Yeas Nays
xw�ar Sonnen
Drew [n Favor
Masanz
Nicosia Q B
scnetbei Against Y
Tedesco
Wilson
Adopted by Council: Date
M Y 14 1g85 Form Approved by City Attorney
Certified P s y Counci r BY ��'�a �� i��� '/�J
J3y
Appr d y Mayor: Date � MAY 16 1985 Approved by Mayor for Submission to C uncil
�
BY BY „" �- ---
Pu� AY 2 51985
. � - � ' C;A_-��-.�`3�
Page 2.
Ne o ith an explanation of the reason why ea h
se vic ' s not being carried. Finally, the repo t
sh 11 c tain the Company's recommendations with re-
ga d to e need and appropriate date for activa ing
��. -seee 6tsbse��be�-Ple��ae��-ea��e sixteen (16)
ad ition 1 ownstream video channels .
b. Af er re iew f the Company's report and a publi
he ring n the matter, the City shall reasonably
de ermin wheth r or not the seee��. sixteen 16)
ad ition 1 Subsc iber Network ea��e-�s c nnels
ar nee . If t e City ma.kes a determin"�iori
t the eeeeA� si teen 16) additional Subscri er
Ne work eb�e-�.s c ne s are nee e , e City ay
or er th Company to ctivate �19.e-seeex�.-6t9.bee�'be�
PIe �ae�k- ab�e said ch nels and the Company sha 1
co ply w th suc or er n an expeditious manner.
c. Th Comp ny shall not ap y for a�.-��e�ease-��.- a�es
e�. ��.e-b s�e-e€-eee�e-�x� �ed-6a���.-�l�e-e��a��� x
e� ��.e-s eexd-6�.bse���e�-Pte �ae��-ee.��e-a�-an�-� �e-
a� e�-�e �-s��-E6�-a�-�k.e-e ee���ae-da�e-a�-�1��.
9� ��.ar�e an rate increase sed u on the cost
i olved in e ac iva zan:yo e six een
a itio 1 cha.nnels . ,�
�
d. F ilure by the Company to comply ith the City'
o der t activate the eeeend-8�.bee ��e�-�1e��ae��
e ��e s 'xteen 16 additional down ream channe s
s all s bject the Company to franchi e revocati n
o the enalties provided in Section 30.036 of
t e Cit 's Legislative Code, as the Ci y deems
a propr'ate. "
Section 2 .
That rdina ce No. 17071, adopted November 14, 1983,
is further amend d, in Article III, Section 1, parag ap (a)
so that th same shall read as follows :
"a. C mpany shall construct a �.t3.a� _si_�n�l�e cable;-4 A
a; Su scriber Network with am�iers s aced
a 550 z. The Subscri er etwor s e
c pa e o carrying ene-l�gad�ed-��ae�.��-�ett�-F� 4
s vent ei ht 78) downstream and e�gl��-�8�
ur u�stream video channels. Of this cap cit ,
e e- ts er�be�-P�e��ae��-eab�e-6a���.-ba�.d�a�d�l�
e xa�-� sixty-two (62) downstream and four
WMITE - CITV CLER
PINK - FINANCE '�: '
CANARV -DEPARTMEN GITY OF SAINT PAUL F1eci1N0. �
BLVE - MAVOR
•
O� in�nce Ordinance ND
Presented By
Referred To Committee: Date
Out of Committee B Date
Page 2.
( ) ups ream 'dee channels shall be activated
d ring he con ruction period as defined in
t is Or inance. Bt����.g-�ke-ee�9��xe��e�-ge��e ;
6 �tpaA� s�a��-eg�'ee-��x�l�-k.et�e��.g9-���e-��.e-s ee��
S bee�� e�-Pie��e�k ea��e-�e-�ae����a�e-��.9�a�� ��e�
e -e�ee �e��es-a�-� e-���e-��.e-eeee�.�.-6�.b9e��b �
"-" �1 ��ae�l� eab�e-�9-ae� �a�e�.:--�e-eeeend-8t�.�eer'be�
e b�e-�a �k.-ba��.va��.�k- t3.a�-�e-a�-a�����ena�
e ���-� e-F6��-de�s�� -an�.-€et�.�-�43-ta.p9��e
� �.ea ixteen 16 addi ional downstream chan els
s all b ac iva e e om an as e ermine
b the ity in accor ance it Article II, Sec ion
8 of th s Ordinance.
Section 3.
This rdina ce shall take effect an be in force after
the public heari g prescribed by law and day s after i s
passage, a prova , and publication, and up the Compan 's
written ac eptan e thereof in form to be ap oved by the
city attor ey.
COUNCILMEN Requested by Department of:
Yeas Nays
��Sonne�.
�►aw [n Favor
Masanz
Nicosia B
scne�bei Against Y
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Sec etary BY � � —8�
By
Approved by Mayor: Date Approved by Mayor for Submission to uncil
BY BY
. . i4��, �,,,,,.,�;G
IT OF SgINT P�UL � � � � �
- OB'FI OF THE CITY COIINCZL `��
.....:.
�i::::....„ .
--=� • Da te : May 2, 1985 �7�3 �
CO M ( TEE RE PORT
TO = Sa�nt Pau I Cify Council
F R O M � Ci O IY1 i t t e e Q h ENERGY, UTILITIES AND ENVIRONMENT
C H AI Coun ilmember Kiki Sonnen
An Ordinance, C.F No. 8 -538, amending the Cable Franchise Ordinance
to allow a single cable ubscriber Network.
. At its meet" g of y 1, I985, the Energy, Utilities and
Environment Commit ee recommended approval of the above �-
ordinance, s amen ed. (Copy of amendments attached)
CTTY HALL SEVENTH FLOOR SAINT PAU MINNESOTA SS102
.g��
WHtTE - C�TY CL.F_RK S .. ._ . . . � - .. ._ .. ��� ` \(`�
/�;�'� p�- `
PINK - FINANCE G�� . + �f,��IJ� ���\ f�qCll �
,CANARY -OEPARTMENT �� SC1 Z 1\ 1
HI.UE �MAYOR vS[1J N0. " �•
lyll
•
�� '���3�Y��;L�� ANk 191�inance rl�. '�
� � C
Presented �,.�� ,.� • � J��
� � ' COUNCIL MEMBER KIKI SONW N
✓ Referred To �NE�` Committee: Date � ~
Out o ommi ee y -- Date
A,.-� o dinan e amending Ordinance No. 17071,
entitled, "An 0 dinance granting a franchise to
Continent 1 Cab evision of Saint Paul, Inc. , its
successor or a signs , to own and ope±ate and
maintain Cabl Communica�=ions System in Saint
Paul, Min esot , seLting fo�th conditions accom-
panying t e gr t of franchise, and providing
for the egula ion and use of said system,"
adopted ovemb r 14, 1983.
THE COUNCIL 0 THE ITY OF SAINT PAUL DOES ORDAIN:
Section 1.
That Ord'nance No. 17071, adopted November 14, 1983,
is amended Art'cle II, ; Section 8, so that the same sh 1
read as fo�.l. s :
"S?ctio 8 . CTIVATiON OF ��a9�T� SiJBSCRIBER NETWORK
�CABLE�
a. Upo the irst anniversary of the effective date
of his 0 dinance and upon every anniversary
the eaft , Company sha11 report to �he City
. on tili ation of downstream and upstream
Su scrib r Network capacity. Such report
� s� 11 id ntify a11 services being carried on
th Subs riber Network, the number of channels
ut lized the rnunber of hours pzr day each
ch nnel s u�ilized, and the number of channels
wn. ch re in available for carriage of new
se vices. Additionally, the report shall
i ntif al? exi sting cable programming
s vice n�t being carried on the Subscriber
COU�tCILMEN
Yeas Nays Requested by Department of:
Fletcher
o.gW In Favor
Masanz
Nicosia B
Scheibsl Against Y
Tedesco
LNilson
Form Apptoved by City Attorney
Adupted by Council: Dat �
Certifiee Passed by Council S retary By ��� �' '���� C... 7—/�—�J.
By
Approved by Mayor: Date Approved by Mayor for Submission t Couacil
B� gy
� � G�� �� 3�j
" . • / :�� -
Page 2 .
Networ with an explanation of the reason why each.
servic is n � being car-ried. Finally, the report
shall ontai the Company' s recommendations with. r - �
gard t the eed and appropriate date for activati g
�ke-9e ead-6 b9e�-��z�-Pie��e�k-eab=e sixteen (16)
' additi nal d wnstream video channels .
b. After eview of the Company's report and a public
hearin on e matter, the City shal� reasonably
dete 'ne w ether or not the seea�d sixteen (16}
addit' na1 ubscriber Network e��=e-�s channels
are n e e . If the City makes a determzna'�cion
tTat he se e�d sixteen (16) additional Subscribe
Netwo k eeb e-�9 c annz s are neeaea, e City ma.
order the C mpany to activate �19.e-seee�s-,�'L3�9@y�� �
P�e�rrae �-eab e said channels and the Co�pany shall �
compl wit suc or er in an expeditious manner.
c. The C �pan shall not apply for a�.-����-ea9e-i�-� ..es
e�-� e-ba9 ' s-e�-ees�9-���e��e�-�a���-�?�.e-rs.��$�=e
e€-� e-see �.�-6t�.�se��.�e�-�ie��ae��-eab�e-e�-er��-t� e-
g��e -�ea� 9��-�b3-e�-�ke-e=�ee���e-d8�.e-e=-��}s
8�d� aaee n rate increase based upon the costs
-.__-_ __ __---3..nvo ved i t e act�vat ion-o� t e �s ixLeen t
a i ional channels .
d. Fail re b the Company to comply wit� the City's
orde to ctivate the 9eee�d-�ribse�}��y-Pie��e�k
eab six een 16 additional downstream channe s
sha 1 sub ect the Company to franchise revacati n -
. or he pe alties provided in Section 430.036 of
the City' Legislative Code, as the City deems
aPP opria e.�� -
Section 2 .
That Or inan e No. 17071� adopted November 14, 1983 ,
is further ende , in Article III, Section 1, paragrap (a)
so that the same hall read as follows :
� "a. Co pany hall construct a �.�.a� sin Ze cable;-4 A
� P4H ; Sub criber Network with am i iers spaced
at 550 z. The Subscri er Networ s e
�a a e r carrying eae-k.ti���e�-t�aea�;-�et3.y-E� 4�
se ent -ei ht 78) downstream and e�gl��-f83
. o r 4 u�stream video channels . Of this ca city,
e e- t3. er��e�-Ple��aey�-eab�e-�a��l�-bs��c����k
e s�-� sixty-two (62) downstream and four �
WHITE� — GITY CLERK - �
PINVC — FiNaNCE �+ COUACII
:ANARY —OEPARTMENT GI 1 �F SAii`T� PALTL File NO. � V/
BLUE —MAVOR
• �/ g
���,���;��,� Ordinance 1`I0. �/�--�/
Presented By � �
Referred To Committee: Date
Out of Committee By Date
Page 2. .
(4) � stre ��dee channels shall be activated
duri g the construction period as defined in
this Ordin nce. Bti��xg-zl9.e-ea�s��-ae��.e�.-�e��ed;
6ex�p r��-9?9. ��-e���ee-��xxx�—�i9H3��.b9-�.��e-rke-seee �.
S�.b9 �t�e� s�e��e�l�-ea��e-te-=ae���ea�e-��9�a��a�� r�
e�-e ee��e �ss-a�-�l�e-���e-�ke-eees�.�-St��ae���e�
--_ P�e��a �l�-ea ?�e-�e-azt��aked=--�l�e-eeee��-�-t�.�ee��be
ea'a� -��_�. ',��.�.���d��.-eqtia�-�e-a�-add���.e�s�
s�:�� -��ae- 6��-de�e��ea.�-axe�-�e�.�-�4�-t�ps�fea�
��d Si teen (16) additional downstream channe s
- sha 1 be c iva e y e ompany as e ermined
by e Ci y in accordance with Article II, 5ecti n
8 o this 0-rdinance.
� S?ction 3.
This �r inanc shali take effect and be in force aft r .
the public h aring prescribed by law and 30 day s after it
passage, app oval, a�d publication, and upon the Company'
written acce tanc t�ereof in form to be approved by the
city attorn .
COUNCILMEN
Yeas Nays Requested by Department of: �
��SOYlI].�Il
o�eW In Favor
anasanz .
Nicosia B
scne�bei Against Y
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Dat
Certified Passed by Council S retary By � � G ry —��o—8�
By
Approved by Mayor: Date Approved by Mayor for Submission t Council
BY BY
. .� ] . - . . . . �� ,f... � '-^- (�! .
DRAFT
Amendments to C le F anchise Ordinance
Article II , Sec ion 8 - all new language
e. The C mpany shall not apply for any rate incr ase
based upon litigation costs incurred, directly or
indire tly, rior to May 1 , 1985, and upon additi nal
operat ng co ts incurred as a result of such litiga ion
during the period of time extending from Nove ber
14, 19 3 to pril 29 , 1985.
f. The C mpany shall not apply to the City for any a di-
tiona shar d use of exclusive public, educatio ai ,
or g ernm t access channels prior to the en of
year ive O of this franchise.
Article I , New Secti n 27 - REPORTS - all new language
--- In•-�ddit' on to all other reports required by this ran-
chise, t Com any shall file the following with the City
Clerk an the Cable Communications Officer for the City
of St. Pa 1 :
� a. No 1 ter han September 30, 1987 , the Company hall
prov'de to the City a complete accounting of s stem
cons ructi n costs.
b. No 1 ter ha� September 30 , 1990, the Company shall
� prov de to the City a complete accounting of ctual
cost of ystem construction, operation, and m inte-
nanc in omparison to projected costs of syste con-
stru tion, operation, and maintenance. Any s vings
accr ing t the Company as a result of the modifi ation
from dual to single 550-MHz cable shall be pre ented
in uch ccounting. Such accounting shall f rther
incl de a plan for utilization of aIl actual s vings
• for the b nefit of system subscribers.
c . Sho ld th Company decide to raise subscriber rates,
it hall file its schedule of new rates and the rele-
van por ions of the minutes from the Bo rd of
Dir ctors or Executive Committee ' s meetings at which
suc rate increase was discussed.
i
. � ��.��'
� � � ' ' � 21 ��.��
----- -------_-
__ __ - - -
______ -- -- - _ ___ _---- ---- ------
w...
------ _ , .
-- ----- -- —, _=^„t.,,, -- --
� R � .� G� i �''i �:1
s ��,ye� ��, Continental Cabie ision
��Y `'�� �"'�` � �` ` `�� of Saint Paul
�, a�� �
�T ,':,�..;�. ?�r�.:; .
April S , 1985
Mayor George La imer nd
Members of the t . Pa 1 City Council
City Hall
St . Paul , MN 5 102
Dear Mayor Lati er an Councilmembers :
During the more than two years which have elapsed since our
Company applied for the St . Paul cable franchise , a number o
evenCs have oc urred which bear on our plans as we move forw rd
with construct ' on of the St . Paul cable system. Among the m st
significant de elopm nts have been the inability of urban ca le
systems to ach ' eve p ojected market projections , the reducti n of
the number of vaila le satellite delivered programming servi ces ,
technological mprov ments allowing for the delivery of 78 c ble
channels on a ingle cable , and lengthy and expensive litiga Lon
involving the t . Pa 1 franchise .
As you wi 1 rec 11 , Continental Cablevision took the mo t
conservative a proac of the three cable applicants in our
subscriber and reven e projections as well as in our propose
technical des gn f r the St . Paul cable system. Our cautious
assessment of the M tro market has since been borne out by the
lower than ant cipat d subscriber penetrations which have been
attained by Ro ers C ble Systems in Minneapolis and Southwest
Hennepin County , by roup W Cable in the Northern Suburbs a d
Ramsey County and by Storer Communications in its older sys ems
in Sloomingto , St . Louis Park and Fridley and its new buil in
Nortliwest Hen epin ounty. Indeed , in most of these fcanch ses
the cable sys em op rators have had to seek rate increases ,
reductions in franc ise fees , cutbacks in access and
institutional suppo t as well as changes in technical desig in
order to main ain t e economic viability of the systems .
84 CJ�Uth abasha }fP.P.f • �Alrl} p�ul AAinnncnf� Cftl17 � T,.1....�........ ican� nn. ..�.
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April S , 1985
page two
The disappointi g pe formance of Metro area cable systems is
not unique nor is it ue to any lack of effort by the cable
operators to i prove market performance . Across the coun ry ,
cable systems i urba markets including Atlanta , Boston,
Cincinnati , Dal as , H uston , Indianapolis , New Orleans , Portl nd ,
Los Angeles , Mi mi an Pittsburgh have fallen short of projec ed
market results . For hose of us in the cable industry who ha e
taken a more co serva ive aPproach to our business , the
performance of hese rban systems conFirms our once disregar ed
judgments. For all o us in the cable industry , including sy tem
operators and s bscri ers , this performance is sobering.
Since rece ving innesota Cable Board cer[ification last �tay
and a green lig t fro the Minnesota Supreme Court last Octob r ,
we have made co sider ble progress toward bringing cable
communications to [he City of St . Paul . That progress will become
a reality later this onth.
tde have omple ed construction of our headend fac lity
including a 00 fo t reception/microwave tower , our Sim isat
satellite dis and eadend building . We have completed s rand
mapping the en ire C ty and have already constructed 80 mil s of
strand and 30 miles of dual cable .
We have e tered into a long-term lease [o Locate our st dio
and permanent offic s at the Union Depot and have begun act " vity
to renovate th s spa e . Our staff has grown in size to 70
persons and ha been actively developing mariceting and public
information pr grams to inform residents about cable services .
Cabling of the East Side began in December and we look
forward to having our first subscribers hooked-up later thi
month and more than 15 ,000 subscribers on-line by the end o this
year .
While th inab ' Lity of nearty every *tetr. o cable operat r to
achieve more han 4 % market penetratioi� is a serious conce n , we
remain cunfid nt tll t we can achieve our conservative 43%
penetration p oject on aad operate a successful cable syste in
St . Paul .
In snite of ou continued optimism , we believe t11at th re is
one design ch nge w ich should be made now to help insure the
financial via ility of the St . Paul system and our ability to
keep subscrib r rat s low in a deregulated environment und r new
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April 5 , 1985
page three
Federal legisla ion . his change will not diminish our servic to
subscribers in ny wa .
As mention d ear ier , we have seen the disappearance ove
the past severa year of a number of cable services includin
ARTS , CBS Cable , Dayt me , Cable Health Network , Cinemerica
Satellite Netwo k , Th Entertainment Channel , The Professiona
Education Netwo k , Sa ellite News Channel , The Women's Channel ,
and the Cable Music C annel . Even with the launch of new
services such as Arts � Entertainment and Lifetime ( both mer ers
of previously• failed services ) and Video Hits-1 , we have see a
substantial de line in the total number of services availabl .
Excessively hi h cop right fees have also made it impractic 1
to import more than he number of distant broadcast stations we
originally pro osed o carry. Thus , there is only a finite
amount of prog ammin available , and the likelihood is that he
number of servi ces w 11 continue to decline rather than incr ase .
As a result , w face the prospect of building a dual cable s stem
with considera ly mo e channel capacity than will ever be ne ded .
Under the terms of the Franchise Ordinance , we are
constructing a dual able 450 MHz system, with one 62 channel
cable to be activate iniCially and a second 62-channel cable to
be activated if and hen the City determines the need for s ch
additional ca acity exists . Each cable also has 4 channel
capacity in t e .upstream direction . Including all required ccess
channels (whi h und r the new Federal legislation are to be made
available to he ca le company when not used for access pur oses )
we will only e pro ramming 51 channels initially. Thus , hile
always quest onabl , the need for a second Subscriber Vet ork
cable is now lmost certainly eliminated .
With the recen development of 550 ME�z technology , we re
now able to d sign nd construct a single cable Subscriber
Network with he ca acity to deliver 78 downstream and 4 upstream
video channel . ( Ea h video channel has the equivalent capacity
of several th usand data channels ) . Recause amplifiers have to be
spaced more closely at S50 MHz , about 15% more electronics would
be required . In terms of cost savinbs the benefit to our
subscribers ould be coasiderable . Indeed , we estimate tha
approximatel $ 1 . 5 million could be saved over the �lext tw years
by construct ' ng a 50 MHz single Subscriber ir'etwork with 5 0 MHz
capacity ins ead o a dual cable system with 450 "iHz capac ty .
At the same ime , he system would have more than ample ca acity
for fu[ure e pansi n .
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April 5 , 1985
page four
The advent of th s new technology has caused a number of
cities includin Balt ' more , Chicago , Los Angeles , Milwaukee , ew
York , Philadelp ia an Washington , D. C. to adopt the above
described syste desi n in recent months . Moreover , each of
these cities h s mor off-air broadcast stations in its ma ket
than St . Paul nd h s access needs at least as oreat as St .
Paul's . Ln mo ifyin existing or negotiating new franc ise
agreements , all oE th se cities have reached the conclusion t at
550 MHz of band idth rovides more than enough capacity for
future expansio whil reducing costs which would otherwise ave
to be borne by subscribers without benefit . Because we are t an
early stage of construction , it is still possible to realize most
of the above d scrib d savings .
Since 550 MHz e uipment is relatively new , we propose t
design and con truct our system with cable tested at SSO MHz and
with amplifier housi gs spaced at 55U MHz . We would install 50
MHz electronic and nitially activate 62 Subscriber Network
channels as re uired by the Franchise Ordinance . There woul be
no reduction w atsoe er in the number of activated channels or
cable services to be provided . Although some 550 MEIz amplifiers
are currently being delivered , the manufacturers of this
equipment can ot pr vide 550 MHz amplifiers in sufFicient
quantity to m et ou construction timetable in St . Paul .
Secondly , and more mportantly , the first generation of any new
electronics e uipme t usually does not perform as reliably s
second and th rd ge era[ion equipment which has been fine t ned
based upon op ratin experience . Therefore , we would propo e to
replace the 4 0 MHz electronics with 550 MHz electronics an
activate the 6 add tional downstream channels when needed .
The decision t replace the 450 MHz amplifiers with t e 550
MHz amplifiers would be made by the City in accordance wit
Section 8 oE Article II of the Ordinance which gives the C ' ty
sole discret ' on to determine the need for additional chann 1
capacity .
This ch nge i even more compelling in Light of the
unbudgeted c sts o litigation which we have been incurrin .
Since Septem er , 1 83 , we tiave incurred direct legal expenses of
more than $ 7 5 ,000 in connection with challenges brought by the
.Ior-`�Jest Cab e Com unications Partnership before the Minnesota
Cable Commuiiicatio s Board , the Minnesota Supreme Court , he U. S .
District Court and the Federal Communications Commission . The
proposed desig�i c ange would reduce the pressure to incre se
rates in or er to compensate Eor these unplanned costs .
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Aprit S , 1985
page f ive
While the integrity of the City's franchising process has
been unanimous y affirmed by the Cable Board and the Minneso a
Supreme Court , and N r-West's claims have been dismissed by he
ECC and dismis ed in the main by the Federal Court , the cost of
defending the e act ons has been high , including our payin for
all of the Cit 's le al expenses .
Under sim lar c nditions , many cable operators would ha e
waited to comm nce c nstruction until all legal challenges w re
resolved . How ver , iven our confidence in the conduct of t e
City's franchi ing p ocess and our commi[men[ to bring cable
services to t e citizens of St . Paul as soon as possible , w have
proceeded , in good faith, in the face of these various
challenges . n doi g so , we incurred operating expenses be ond
those normall seen during the construction phase .
When we pplie to the Cable Board for a Certificate o
Confirmation n Dec mber of 1983 , we anticipated that our
Certificate w uld b issued by Feburary 1 , 1984. 8ased upo that
assumption we lease office space and made certain hiring
commitments . Becau e of the challenge made [o the Cable Board
decision, our Certificate was not issued until May 11 , a d lay of
more than th ee mo ths . Following the release of our
Certificate , we ma e a number of additional hiring commitm nts
and moved fo ward ith preconstruction activities . On Jul 3 ,
the Minnesot Supr me Court enjoined us from undertaking a y
physical con truct on until after it reviewed the Cable 8o rd's
actions . Th inju ction lasted until September 14 when th
Supreme cour unan mously affirmed the Cable Board's actio s .
While we wer grat fied by the Supreme Court 's ultimate decision ,
the injuncti n inh ' bited our progress for another 2 1/ 2 months .
All the whil we w re incurring additional operating expe ses .
We con ervat ' vely estimate that the delays of last s ring
and last su mer r sulted in additional costs of $400 , 000.
Coupled wit the egal expenses incurred to date , this br ags to
more than $ , 100 , 00 the additional costs we have incurre due to
the Nor-Wes liti ation . This accounting does not includ the
revenues we have ost due to the aforementioned detays or the
Eact that w will be launching service in April 1985 with rates
that were p opose in MaccFi 1983 for a system that we originally
anticipated launc ing in mid-1984 .
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Aprfl 5 , 1985
page six
Therefore , we se k a design change that will not diminis
our service pac age t subscribers in any way but will offset
additional cost incu red , so that these costs do not have to be
passed on to St Paul subscribers . In this regard , our
litigation expe ses t date have added $25 in extra costs per
prospective sub cribe . If we cannot achieve some cost saving
now , these liti ation expenses will have to be passed onto
subscribers as oon a our rate freeze expires . To keep rates as
low as possible serve our mutual interests of developing a cable
system that pro ides •ervices to a substantial number of St . Paul
residents so that it truly becomes a community communication
system.
In view o the obering economic realities of the cable
business , othe cabl operators have sought and other cities have
granted far mo e swe ping modifications of their franchises . In
the two years ou ha e gotten to know us , we hope that you'v
seen that our [yle nd approach is different . Thus , we do ot
come before yo with a laundry list of franchise changes .
Rather , we her by se k a single franchise modification which we
can represent o you as being in the best interests of St . Paul
cable subscrib rs .
We have a unique opportunity to benefit consumers , he
City and Cont nental . I am pleased that technology has adv nced
so that we ar able to offer this benefit before incurring
substantial u neces ary expense . Because the pace of syste
constcuction ill s on increase dramatically , we respectful y ask
that this pro osal e cpnsidered by you at the earliest pos ible
date.
Sincerely ,
arbara J. Sitkin
Vice President and
General Manager
Attachme ts
•cc : May r Geo ge Latimer
St . Paul ity Councilmembers
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Chicago Cou cil oka s �S hl� of Chirago cire rcvicwi � thc
Y rhan�cs to scc hc�w thcy could a cct thc
� �crostructi�m and c�Ekraticm of th•ir tiys-
contract for f an hise Area 1 '`��� ���A��`��z end 3' Accurding �� ���k
Ehlcnfcldt, dircctc�r ��f consum r rcla-
tions al thc Chicagu systcm, t � plan�
Pc�irdi�r,�� Ma��or W�t.ti�ltii���1����'.s ,�'� -��ltc�cul, ��unc� cn�rU�uc1 Ic•rntc !�� be ��f- has txcn dcsi�ncd .�nd sp,�rcd or 550 �
fc�rc�d tu c�ui�y�unrc�.c ►+�rrr�r,���Nh��r »rr fI71/!('17.4C�nrc�u.c � Mlir.
F,hlcnlcldl r�wld nut ctitint lc Iti�t
CHICAGO—'f'hc Ci�y C'ciunril la � r,�n� inv��lvcd in thc cliticutisicros, whi�h I wcck what cost saving�hc mish bc ahlc
«'cck approvcd ,i pro�xisc�i r�intr.�rt ( r ruln inatcd I;i�t Dcrcmbcr with a pru- �u achicvc if thosc mcxiilicaticm. arc put
Chica�u's franrhise Arca 1 with C��i - Fx�sc agr��mcnt that inclucJed morc t:i- into effcc:� in Arcas 2 and 3. he tot�l i
munications & Cablc, a romp�ny co - vora Ic tcrms for Communications & cost of thc build, which will c cnwally
trollcd by Tcic-Communicauons In ., Cahl�, � cornpany that by thcn had bc:cn pass somc 400,OOp homcs, o iginall�� i
which includcs sc�mc tcrms that arc nu� c t�kc ovcr by"fCl. was cs�imatcd u� bc around S (X) mil-
favorablc to the company lhan thc�sc i i- f3 c;iusc cif�hcsr an�l<�thcr fac�ors,thc lion.
cludcd in thc contr.�cts �i�r thr rit '� app �vcd coniraci I<>r Arca 1 includcs —Scrl1•Ricr.se!l
<ith�r fi�ur franchise ar�a�. thc t illcnving changes: �
If Chicagc�Mayor Harold Washingt n A rc uircm�n� f<�r a � � rwik -' � ' �
signs thc franchisc and Communicatio s desi�ned and ui t �� � � GE market�s T �� '
& Cablc acccpts it within thc 30-day • �- tial activation of 60 channcls at 450 '
ccptancc pericxi, city offirials say t at M and vcn `� "y` ����? � `�fif'` '�
those more favorable terms, which - oth r four franchises currently require
Comband--sy tem :
clude a switch from a reyuiremcnt f du� r�ble of �300 MHz with an initial ` `�� � '
s.l' y��t.:��� r7.`Ol�..�F `. "'g3�'��_..
dual cablc tc� singlc trunk, will tx� f- cap•�ity fi�r 88 rhanncls, up�radablc to ppRTSMOUTH,�Ya'' `���" ` ���.
fcrcd to the companics wiring thc ot cr 104 .-�- �>�, y
Four arcas as well. triC's GablCProducts ratr �s`�e p-': ,
A ,cparate �nstituUOnal nctwark tia�g��ar�numbe��ofCa leA g ;' �
Group W Cable, which is buildinL e wh n and if such a loop provides techni- .� �-•
system th�t serves Areas 2 and 3, I- csll and economically feasible. The tors to mstall its:Comband �tivhdth'. .
rcady has laid 10 percent of the e ti- oth r rompanies are reyuired to provide ����on system� u�, cab'� �jistetns j
mated 1,200 plant miles with dual ca le sep rate f-nets under any conditions. ��� �e.country,.�$oCO � Lto°YRori j
Polomsky;�mar�ager o�`�cabl ;�S�duc�s : '
and is scrving some 7,000 customcrs in Tcn perccnt of channcl capacity � �
the north, northwest and western r- res rved for public acc'ess channels. The for;�rhe�GE.�Co�c!Ci`e� ,�"°nies�
tions of thc city. ori inal franchises call for sctting asidc P�u���eP��'��E . ��O` '
.have tf�e=Comband�j� "1e�for 1
The companies that pl�►n to serve he ?0 rcent. h w . � �
operators�3y�Tovertiber �'���•.'
othcr two sections of the cit��, both of No mandatory obligation to cable � �- ` r` �
which are partly owned by TC[, h•ve hi� -rise buildings already wired for a "�m� '� '�n 1
v �
not yct be�� S+r.ablebpetato o'�'tip twi� j�
un construction, accordin to co pe tine technolojy unless there's a " " � F• ' � ,
��number:of�chani�elskovec:ean ng�`cable'= ,I j
ciiy officials. TCI is a 50-pe;rcent ow cr de iand for cable servicc and unless it's i ;
and:ainplifiers wit�out ;phy ically�up->_ . �
of Chicago Cable Communications, he ec nomically ��iahle to cable ehe build- .�
vcnture th�t will wire Area 4. [n Are� 5, ino. 8�dtngthe.plant,,3iaBbeenS dteste�m , ;�
UA�:Cabl stems='C ,_
the Ciry Council just gave final appr al Uther technolo�ies can be used to ��`�� ������-+��`Si �,����,_ j,
last week for TCI to buy out 87 perc nt pr ��ide service to a�buildin� if those N• r r ,.57, +�n?P ,,
tnonth�'o o�` �oncs��� �
of Stellar/Continental Cable, th� vent re tec nolo��ies are capable of deliverin� +����x •���5 �� ���- �� ;
that was awarded the contract there. CI the cit��'s over-the-air channels along 't i - � � e ls Tmat�.,, ;
����,.,q,r�Y._ ...�.�. - � . u ..
officials were unavailable for com nt wi h S4 channels of non-broadcast video �`� `` �
i
at press time last week. pr ramming. ; - �. � -
Those companies, along with Ca le- Thc designation of a ?7,000- "r " �
vision Systems, were awardcd nego at- ho sehold arca in the downtown section `�- `;I �
in� rights for the city's five franc ise be ween Division and 31st streets as a � j
arcas in early 1983. Final contracts re no -primary service area where house- � ' �
approvcd w�ith all but Cablcvision ys- ho ds �ill bc wircd only undcr ccrtain �� �F � � � r� I
tcins carly last ycar. co diuoni, mcluding dcnsitv and the "- � ,.�' �
The Long (sland-b�sed MSO chos to ec >n��mics of layin��cable there. ���f�`
�+•ithdra��� frorn protractcd nc��utiat� ns �11 of the�e more favorahlc terrnti. ����'��g�n� � *��';
cut c4sts'�ot�bperat�ts w ca'.,
for the Ar�,i I franchise la�t April be- ��i h the excep�icm cif th� nun-(�rirnan' bIC '`'e�CO['dl� {fO��O�bItS�s BIifl'.� !
r.�usc uf «•hat comp:�n�- uffici.ils dc- >e vir� .�rw cic�i�,n.�ti�,n, �vill f� ��ffcrcd ' ° .g-# � ; .���
n" .-�� v x x`"_i
ticritkd .is untavorable runditiun� in thr tu the uthcr Iranchi.�e� �mre "f�Cl :�r- �������niel�?� m�iF.i�,�
� � Kt'
3CX).(X�-hcmic area. Cabl�vitii<m ys- �•r xs the Arca I contract. ����Q�����A� ' ���
tcros h,ul tken seeking m�irc �:n•or ble � C�mimrnting un thc chain��s. Cit�� �� �" .
er .^� { r.°_�� . .'^. � . �a� .-Of
tcrms un�i�r �vhich to o ratc in thc rc.i , � ,��.'e������. �1 Ctt�� ,
(k C ble A�irninistr.�tur Jc�hn M�Guire tuld .�Ys� � ' �e =- «- �--
and r�rnc t�> an impastic with city ffi- C blcVisi�,rr I�st weck: "Thc nohon of (� `�
ri.ils. b ilding ,�nd dcsi�ning a cablc systcm � ��. . .'-�'�" .
Onrc thr ��reliminary award w-i ncr fi� 550 !�1Hz and activacing it at d50
u�ithdrew frum t1CLOU:ItlOtlti, city �fli- N Hz was � concept ehat wa.n't �level- ,'� -
' cials iniciacr�i clisrustiiuns with Cc�n nu- oF �d at thc timc (thc original fr;�n�•hiscs �z ` � ��
nir.itiuns K (:�hlc. thc only <xhcr a pli- w�rc tking ncgutiatcd) in 198i .. .• � � *'� f' y' � . ' '�- .
�' ,J _' � .
cant tix Ihc• fr,inchisc �rea. TCI latc tk- ,\icanuhilc, c�(ficialti a� Grciu�� 14' C'�i- �
CableVisionlfebruary 25, 1985 11
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� � torum ideas. analysis: opirnon
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$eCtion 1 11 t Ch�tago Tn ne,.Tuesday,FeD�uary 5, t985 .• � •
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� A reall tic able TV system
By William Singer and U91d5S C 5581 ,Jf. ¢ressively into na�a transmission�o�t�v ��cisting
nxed nctworks. In nddition, ��� ����� �cs���b' :tY
tion nyuircs lhal cablc institutiona��.��.�s mu+t
Chiwgo's cable televisio franchising p css may �re6vlated like othcr common ceR{q K�.��es.As
be coming to a conclusio . One year o the ci�y �a result, the city'S original requ�tt �q a �,,�rate
cntcrcd into agreements N• h cahlc oper tors in four dual•cable institutional netwrork is�q����rcal�s-
of its fiec franchisc arcas. 'ow•its cable ncgotiating ��c. Subscribers chould not have � pay' fur
team has made rccommc ations for th rcmaining somcthing w•hosc Icgal and economK �,ture �S 5° "
arca,Arca One,M•hich st tches along t e lakefront uncertain. . i'
from the ciq•limits on t north to Slst Strcet. f'ublic access (unding: Funding fa� Chicago
TT�c difficulty in gctting Area One un er contract Access Corp. will be somcw•hat reAu�� b�� it �cill �
and the lack of constru tion in two thcr areas still gct about 51 million a year in opera�ing moncp
re0ect industr�•a•ide chan es that ha�• Icd to con- a�'cr the 1Syear term of the agrcement;,�about S3 i
' traa mod'Jieations in mo t large cities million for capital cxpenditures. This is crxwBh to �
� \egotiations over Arca ne have be n a catalyst make cable a means of communicatiu� Lnd pro .
for reconsidering the ot r Rramming for Chicago's dieerse institutiuns,or�an-
tour asrecmenes in light o( ` izations and commumtics. � !
changes in the market si Compensation to the ci�y and mudct{+�!u,e: The j
franchising began. revised agreements do not change th� !c�•el ot ^ �
. As expeutive dircctor nd compensation to the ciq•; it w�i11 get S p.rcent of
associate' dircctor of he ' gross rc��enues. The commitmenta(or a nunicipal �
Chicago Cable Televi on � channcl and funding for equipment,studio nnd staf( = '�
+ Studp Commission, •e � ' havc bcen maintained.
h e 1 p e d d r a f t r c• Area One's spccial prnblems: Aree Onc,txiundcd
� ommendations incorpor ted � by the lake and by the Chicago Rner and �
in the cny's guideline to Ravenswood and �Vestern A�•enues, h;,i s large
'rZ prospective franchisers. concentra[ion of public housing, do�m�uwn of(ice •- y
h exploding industry of {he • buildings, lakefron[ high•rises and wclt c��:�bliahed , �
late 1970s and earl}•'809 hat ncighborhoods. This diversity prc.cnt� unique
� we studied seemed to ve "OrpeT'O"" problems. ,�
� a limidess(uwrc. The tateof•the-a w•as 36 chan- Conventionally, cable is suvng on mi1��>• poles. •':;,j
nels per cable; today 2 arc possib e on e singte About 90 percent of Chicago can be wircd this N•ay.
cable.New•program se •ices N•crc a ewnced e�•ery but the other 10 percent—�•inually ell w1U�m Arca �`�•�
, (ew momhs. There we multiple c Itural, mo�•ic, Onc�nnot bcc�use most utilities in the Lnp and
neas, sports,adult,(a ilq and music channels,plus �he near nonh Side are underground.Con-iruction �•�
� o[hcrs dcvelopi:d or pla ned for dou s of narrower �sts in Chic�go for aerial wiring ere about 5=0,000
interests. per mile,but underground construction co�tc stnrt at
But [hen people, n t technology, became the 5250,000 per mile. ".;.��,
� controlling force.Thre Zi-hour ne�c channels,(our A1so.man�•o!Area One's high•riu buildings have
movie channels and t ree cultural hanncls could k��cllite master antennas (SntAN) �het dis�rihute �`�
not all sun•i�•e. dfany n•ices��•cnt ut of busincss ihc most popular programming. Ha�•ing imcstcd in
PeoDle told the oper rors how• m ch the�� werc <uch a system,building ou•ners or essocietions may
� w•illing ro pa)'. Sudden y cable had nds,particu• �� unw(Iling �o stan o�•er�•ith cable just to receivt
� larly in urban market u•hcrc it w•a just arriving. somc added scrvices.
Take, for ezampl , ceble's 1 rgest re�•enue 7'tie cit��'s negotiating team has n�oommcnded
source—ihe money t m subscribe s. In nral and di�•iding Arca One into ewo sections, prim�rp and `
� suburban Amcrica. 50 �+crccnt cub ribcr ratcs arc nonrrimar�•. TM primar�� scction uould includc ell +
cammon. The compa ies secking Chicego's (ran- of Arca Onc north of Dn•ision Strcet end wu�h of
chises projected rate at or nta�•e SO �xrcent and 11st S�rect and ull o(the arca's public hnu�ing units.
� additional monthly p ymcnts of or more. But �b�c sen•ice K•ould bc cztcndcd lo ell dvrlling
, A subscriber rates in ajor cities i rned out to Ae units excepe (or those scrved by alternete sen•ices
closer to �0 percent end monthl paymrn�s nre yuch as S\tAN (although buildin�s u�ith S�1A7V t
� � a�•eraging beloN•530. cin rcqucst cable). This mcans 90 perccnt o( all
Other problema h ve made t economics of d�cellmg units in Area One N•ill Aa�•e �Ae optio� of �
� urban cable eonsider bly�differcnt 19RS than w�crc recci��in�cahle.The rcst—rcsidentiel or other huild-
contemplated in ! ! and 1982. Mcillary caAle in�s such as hotels—w�il)be sen•ed under a complex a.
� sen•ices such as sec �q•and sho�r t•homc he��e not furmula thn� ma�• of(er eithcr comcntionul cable ,.�
had much wnsumer ccep�ance;t tclephone com- sen ice or caAle ��ia microaa�•e transmission.
pany has moved ' ro busincss communications, �licrc,��'a�'c is not S�tAT',w'hich is limitcd to a fcw
eJimina[ing e poten inl soura o cable re�•enue; channels, but is full cable sen•ice.
� eonstrvction costs e higher thnn zpectcd; there is The realiry• is [hal !0 percent of Area One is !^ .
competirion lrom ee ellite master nntrnnes in higM �R�ird differcn�ly (rom eny other pan of Chicago�
'rise DuiJdings; end n6rcu has 1 Riale�ed limit�on (or�hrcr rcasons: undcr�round constrvcqon eosts of
the ability of cieie �o reguleee cubk operoton. . �r
� These rcalities cann t bc ignored � .�
��'hat kind of s�• trm is rcnh tic? Th�s �s tlie �1L5 IS a tiC:lICd�ONT S11tCIT1, hut by
ti question the recon endutions be ore the cny couo- ���� ����;iRS f1FL5 (�1C f1CAf1 flC`�(1 CU( OU� •�
Q ul try to enr�•er. - ;'
( Subscriber netN lan rcc;om- ��r �1-� �i
mcn s Sin e c annel ab c
_ sion to 2 upstrca and • m c n cls. �L.
. o a v ca e s•stcros. �0 �o :o umes �hc rose of eeria! ceble, a rcQ� x
• � a • m:�rkc! bcc�use of S�tAN eomp�tition and b'��« '.• 3
temolated ����. T e. Public a ss will hovc !0 ' �cnuc� !mm hah abscriber payments ard �
percent instead o( 20 percent o channd cepaciry. bsa o!promicd lec�lrom an insti�u�ionel nee.��
but it w� � a e allenge for Ch�cego Access Thu li • �edcddo.�r rynem, but by rw rtu�^�
' Cory. to prv�•ide lar progra min8 for thox cii ►�e� tAe Ae�rt Mcn cvt wt o(it. It�capacity u�
ctunnels. No othe ciry is opera ing N'iiA morc. ��eteo!•tlr�rt. Tl+cre �� r�m for crery pro��
I 7�.�o impprtant spccts ongin U�' rcVuired by thc m�n� .rn10 �lu� c�n be of(crcd. end rvorn �
ciry. intcrconnect n emong f anchix •rees nnd. �er. TT�cn b • hl� �mm4mcnt. in cAuru�el� �+'d
' I tw•oweY cepebili . erc prcscn� �n tRis n�..•pten. r.�,rnucs. to �vt+l�c ��a�. NI pinnn�y munic�P'� � .
' Institutlonel ne arork: l\'ith Ihc diecstiture d u,�� •ra p�r.sn�, p�Y t�, ��i�utio�nl nctMVN
AT6T, local Icicp �ne eompnncs hu�'e rtw�.'cd •P ha.e t.rrn di:�rd,d. 1( t�o-weY .eniics ere�`A �
, • `irncl..�n�n�.�Vt���f.r� M' cmnumen. the npcm
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United Cable f A. seeks 10- ear renewa
y
LOS ANGELES—United Cable Televi get an on time,"said Parsons. such a studio,if the city decides i wants
sion of Los Angeles Inc. has toid the cit So ar the bank was provided$45 mil- one in the 1987 franchise renew I pro-
it will not build its $60 million East Sa lion orth of financing to United in two cess,"stated Adler.
Fernando Valley franchise unless th other alifornia builds. "The pay-backs Some members of the commu ity ex-
city grants the company a 10-year re we h e secn in the industry are 10, l5 pressed fears that United might sk for
newal of the f�anchise. United won th and 2 years, and I even know of some further concessions if a 10-year newal
bid in Sept. 1983, with the understan syste s around the country that won't is granted at this time.They also anted
ing that the franchise would expire i pay ck until after the year 2000. The some guarantee that the addition $750,-
lanuary 1987. All curcent Los Angel bank wouldn't even consider financing 000 would be used exclusively fo public
cicy franchises expire on that date. Unit if it only has a two-year fran- access.
"The bottom line," United attorne chise "stated Parsons. The board hopes to make its recom-
Scott Adler told the board of teleco - Pa sons would not say that the bank mendation to the City Council n Unit-
munications, "is that for United to buil woul definitely finance United even if ed's request by the end of F bruary.
a $60 million cable system, we need the ompany received a !0-year re- —Ch ckRoss
long enough period to amortize the deb . new ,but said the bank would seriously
The minimum time is 10 years." cons er it. Parsons also warned the city
As recently as November 1984, in a of fo cing United to build the system too Obscenity charges br ught
letter to the city,company President B 1 quic y and inviting technical difficulties a�I11St COX CBbI@ Sy em
Cullen wrote tl:at Un�ted was committ dow the road.
to financing the system even though it C llen said that neither Bank of VIRGIIVIA BEACH, Va.—A Virginia
will expire in (987. "Although Unit Am rica nor Bank of Boston had been Beach grand jury on Feb. 5 handed
clearly stated it would exptore atte - app ached by United with any type of down seven indictments agai st Cox
tive financing arrangements. United d pacl age yet because the comnanv had Cable's Virginia Beach cable s stem for
agree, under a worse-case scenario, o 'ust een ranted concessions in its fran- violations of Virginia's anti bscenity
commit a poction of its line-of-c it chi m Decem The ma or conces- statute for carrying programm ng from
(562.3 million) to construct and ope te sion was reducin the su scn er net- The Playboy Channel. The will go
the franchise. A letter from the First a- wor of the ro sed - es- to trial May 7, according to P ul Scior-
tional Bank �f Boston indicated at pas s stem to a 77�h tino, Virginia commonwealth attorney.
moneys available under United's revo v- one rom a dual,400 MHz, 108-channel If convicted,Cox faces a maxi um$1,-
ing credit agreement could be commi st m. n a it�on, e compan e- 000 fine for each count.
to the franchise, under the stan rd cei ed a 10-month extension(to October T'he dispute arose when t minis-
terms and conditions of such cr it 19 )to complete construction. ters and church groups, cting to
agreements," Adler said, but added at ough no cable has yet been laid, Cox's request for a rate incr , pres-
this is no longer the case. "That lin of Cul en said United already has spent sured the Virginia Beach Ci Council
credit can no longer be designated to is ov $5 million in designing and ptan- not to authorize any increase nless the
franchise without a longer period e nin the system. If the company is to cable operator dropped Th Playboy
bank probably wouldn't release that ne m t a June 30 deadline of 50 miles of Channel. The City Council balked at
of credit with the franchise expirin in act vated cable,Cullen said the company that request, citing federal l ws which
two years." wo Id have to spend an additional $6 prohibit municipalities from regulating
To back up its case the comp ny mi ion. At this time, he told the board, the content of a cable system nless that
brought in !im Parsons, a Bank of U ted was on schedule. However,if the content is proven to be obsce . Council
America vice president specializin in co pany did not see the-�ity moving to then passed a resolution aski g the Vir-
broadcasting and cable. to address the ap rove its 10-year renewal, "another ginia commonwealth attorney s office to
m nth from now I might not be able to investigate the matter. �
an wer the question the same way." The gcand jury viewed n ne movies
o help convince the city to grant the shown on The Ptayboy Chan el and de-
re ewal, Adler said the company would termined that seven(Girls o Say Yes,
"The bo[iom line is that for " gree to all terms and conditions im- 7Trat's Outrageous, Talk D rry to Me
United to build a$60 million c le d on all other franchisees in the Part 2, 7he Mistress, N ry Nurses,
SySlem, we need a long enough 1 87 franchise renewals. In addition the Babe and 7he Dancers)may iolate state
c pany would agree to any additional obsceniry laws. Chorus Ca[l nd lnsatia-
period to amorii.ze the debt. Th te s and conditions imposed exclu- b[e were not considered ob ene by the
minimum time is 10 years. " si ely on United at that time, based on a grand jury.
d monstration of need and a determina- Cox officials in Virgini Beach re-
ti n of economic viability." fused comment on the matt r. Cox cor-
The company also would agree to pro- porate officials in Atlanta sa d they were
v e an additional $750,000 (on top of stit! studying the indictmen and could
board. Bank of America and Ban of it already committed $250,000) 'for not comment on the case, ther than to
Boscon are equal lenders to United. ' We s pport of local programming or for say the company "dces not onsider the
have been very, very cautious of th ur- s ch other cable �elated purposes as the material obscene."
ban markets. In the past several m nths c ty may determine,"Adler added. Cox's defense will likel center on
we have turned down financing se eral [n further politicking Adler noted that frcedom of speech protectio guaranteed
major markets, including Sacra nto c ty hall lacks a public access studio. "U- under the First Amendm nt. Playboy
and Milwaukee. We've liked Unit be- n ted would like to take the lead in com- Channel officials have said ey are pre- '
cause they've bcen consistenQy on ud- itting their pro rara share of funding pared to assist Cox in the le al battle.
CableVision/February 18, 1985 11
� . , ` � �j-"--�s� v �
MultiChannel News NlarCh 4, 1985
Network aad ti for
Ratings ��d .�� a .9. EouoW by Sacramento Considers
CBN with a .8, CN and
ESP1Y with a .7, CNN- ead-
�n Jan. ��e��8 0.4. �etirne's $� Franchise Modification
was bebw 0.3, e lowest ating
IVielaen reported number reported by Ni Isen. ey Stewart Schley to raiee required capital or the
ESPN and are re � West Coast eureau Chief system as originally pro
1 Networ� remained in SACRAMENTO—The city Scrippa-Howard of icials
. lece with a etead I on a uerterl asis onl ❑
p Y council and oounty board of would not divulge the tential
while third-place CBN supervieora here will meet joint- partnere it and bro�er D iels 8
increased to a 0.9 from a ■ . ly this wee{c W ooneider approv- Asaociatea Ine.lined up. pecu-
�eble Newe Networlc Detro�t un �I �8 R1O�'�uons in Scripps- lation locally has cen tor
�ed in fourth with 0.7;The � � � Howard Broadceating Co.'s�an- raonthe on TeleC.omm tioas
ille Network maintained �m �+ chise agrcemenG Inc., but TCI pc�esid t John
ith 0.6; and CNN-Head- The changee, if�approved, Malone lest wcek d ed to
Ilowed with 0.4. would eave more than E16 m�llion state whether he had to�
priroetime� all the ad- �� �� ' � capital outlaye and malce it 'oin the ro'«x. O
ted cable networks were DETROIT city uncii ��'tor the oompany to finance .
slig�dy ezcept WTBS, and the may -back c�ble °�d�� �°Y�"' ��ut a �
increased from 2.8 to 3.0, communicat 'ne oom isaion p��OO1°�°Y°����d• �jh��g� M r,
fetuae,which moved h�om here are figh again, further However, the board of direo-
).4. USA declined from a delsying the igning of a cable ��of E.W.Sczippe Co.,which �unal B e
',.5; CBN wae down from franduee. entan thewir- o�"IIB 80 Perceot of Scripps-
.1;TNN,from l.i to 0.9; ing of 470, homea. Howard's stocJc,hsa not decided �'��I �
�ocn 1.0 to 0.9;and(T1N- h'hether to oontinue alone or
Barden leviaion ae ten-
oe, �om 0.6 to 0.4. ' ��� �O°g �� °O�°�II1�
tatively aw ed the chise in CHICAGO-TeIe-<'.o munica-
,'I'NN and WTBS each Aug.,1983, ut hes unable believed w�7ling to join in the tiona Ine:a neor,ntly app 000-
350,000-home franchise, the
ed pene�ation for the ����8 ��� aty In �ro�y o���, trecc for franchiee area here fell –
by one percent. addition t preaid t Don �� �����8 inw jeopardy last k when
3S alao topped the list of Barden's in ility to t Cwano- 8m� . mayor Hacold W ' thcr,at-
ne�otia m _ acramento e
ing and his est for y�SO ened to�eto the deal ese all his
cable sta�is a move to a 450 MHz
?orted cable in 18-hour million in anchiee ' ica- aPP�intees W the ci 's cable
for fourth quarte.r 1984., or, w en av e,a S50 MHz,
tions, the rocess ae beea oornmission Neie app by the
: the addition oi the , e syatem e re-
hampe,red y the oo iaeion s city oouncil.
r C�annel and Nickelo- sent e system with�
the A.C.Nielsen meter. refusal to � p the « oouncil 743-mi7e eeparate institutional Iast weelc,the oo cil's cable
iaformed o the nego ' tion pro- networic; and a move to eeven �°O�°ittee app one ap-
rding�to the Nietaen �+ �� �e �• microwave-linked hub aitea pO1°tr°e°t but withhe approval
WT$S received a 2.4 In late F .,ooun voted 6-0 instead of four headenda.Among of Robert E.Mann,a awyer and
or the 7 a.m. to 1 a.m. ��aw the other modificadona Scrippe- former state'�epresen ti�ne.T„o
�ypart, ahead of eeaond- �{ �� ney fo tectwical Howard oould disband a propos- of Mayor Wash' 's appoin-
SA Networlc with a 1.2 �nce� �� p�o�Y PPr'���
kor the arter. CBN an7y a proteat. ed local newa channel if studies Alderman Eugen Schulter,
4u "We have tinua!}y ed them ehowed it oornmerciaIly unvieble. chairman of the oo cil cable
E with a 1,and�SPN Ina for inform tion, and they have � Howard Cable Co.
►k Newe Network with a ��� �{�,•• • ��d P� oominittee and a m ber ot the
�e Naehville Network _ president Milce Callaghan eaid �u_administration uncil ma-
president Erma H ndersoo. �e ch es would leeeen the
i a 0.5, with CN1V- "'�at j dcesn't t it." antici ted E166 million ca ���_ Jority,said his oom ttee refuaed
e and the Weather Chan- � P to act on Mr. 's appoint-
Ms. H dereoo a ofEered a izetion of the eystem by more ment until Ma r W n
�s fust rating meaaure- �lution which �1,, �� 10 t� Without the � ��
ith e 0.4.I�fetime reor.iv- ��° discloeed hia choice or city cable
fa the quartel calling on uncil s to hire its changes the system would be a adminiatrator.Tha positio�has
own cabl oonaulta� to aaalyze ••hard sell"to finance, aseistant been held by lohn uire,who
�lodeon'e fu-et IVielsen euch ite s as Mr Barden's treaeurer John Wolfcorn had agieed to ' as adminis-
c�a 9 a.m.to8 p.m.(ET) requested modifica na and hia a�+�. trater until the ises for all
(oc 11 houre I wae 0.9. finanung lana,nei er of which Earlier Cableviaion Systema' fiNe o[the city'e were awaid-
24-hour basis. WTBS has been focmally reae.nted or C�arlea Dolan was c�emoved sa a ed. Mr. MeGuine ' ezpec.-tsd to
n�ed 6ret with a 2.0.USA di with the uncil. O partnei here after proving unable resign ehortly�om e poeition.L7
� , � I I � ��
��� � � ���
.
DCI PreS � _..
Ro ert lohnson �
ink . -
S 15 ear c -
able f ranchise
Company j'uces fornricl hle lask firs�ruising$85 million
WASHINGTON—Di��ric
Inc. President Robcrt)i,�� Lehicvis' n ccnt of homes in each ward one year
day signed thc I S- c:,r 1°�`�'� M n- latcr. The entire system must be com-
franchisc for Wa�hi�b �' �� �cicvis on plctccl within four years.
�""� ��•C., putt ng DCI still faces the formidable task of
�o rest speculation th:,� � •� m�ght sk rai�ing approximately $85 million to fi-
f�r certain contract c�m c�,y��,ns. he nancc the development of the system—a
xigning, witncsscd hy Wa�hin on
Mayor Marion Barry ���� g �sk that will take "90 percent of DCI's
City Council, cicars �h� mcmbcr of cfforts over the next two months,"
tclevision servicc to t� aY for c ble Jc�hn.�on said. DCI's financing plan calls
ton next spring, pro���J Kj � �� Wash' g- fc�r the firm to raise$35 million through
)CI can r ise limitcd partnerships and an additional �
thc necessary financing �; ���x$�30 ��_ District Cabkvision Inc. President Robert
lion project. �SO million through bank debts. DCI lohnwn.
The DCI signing endcc un nftcn b tter h"�� to have its financing package in
xt►uggle. markcd b p��cc by fall, although the franchise said there may be` negative feelings"in
y f�'� �"^r• law.uits givcx the company until next April.Thus the financial com umty because DCI is
and countersuits, to hri�
nation's capital. On {:�� �''hlc to thc far DCI has raised $2.9 million throu h a minorit control com an
2� DCI and I�x��investors. g y P Y• "��s is
Capital City Cablc, ;, I„ inK hi���c for America and this i a black-owned com-
�hc D.C. franchisc, rcuc� •,�;i �ttic cnt ran�r;ai�,se �he moneys but acknowle ged ha tyisrit in a nu hell,�Witkins�said
in a $125.7 millicm ;ii itruxt Iaw•���. �ha� �•the task won t be eas Herbert Johnson mainta ned that regardless of
That setticmcnt came un eks Wilkins, a DCI director in charge of fi- ownership, mino ties will "absolutely
aRcr the U.S. Justicc I ���ih,�cnt and
Fcdcral Communicati�,i� nancing, noted that "the market for ca- control the votes f our board. We did
��h gave tacit appro�;�� ���������mi,sion blc limited partnerships has not been the not get into this deal. . . to turn our
and Potomac Tcicphon �•��h��a ake bcst latel backs on minorit ownership and con-
build the cable plant aiu Ic:ix� thc ines y.•.
pl•n to Vaicing his personal feelings Wilkins trol." —John Wolje
���DCI.
Barry claimcd hc w�.� ••������htc " to T�� fa ees d ea d I i n 1
h�ve ' taken the final xt ��" in thc able � � ale
franchising proccss. ' linh 1oh son,
wc'rc delighted that ,u �,,,. � �
pull thisoff.�� 8:,� ;.. �« << �� �� to Century Communi ations
� fr�nchise "fair an cy iluhlcr����� ��h
DCI and the city.
lohnson, holding ;� r«� � K�CHLAND COUNTY, S.C.—Tele- late 1970s. Syste officials said they in-
`Ymbol. said cablc will ���` as a Communications Inc. is trying to sell its herited many tec nical problems.
busines. ci�mmunity, I' ii� �,��h�f nt�� troubled system in Richland County, In 1981, sub ribers began to experi-
tainment community, f ii1 liir lh� •�i�� S.C., to Century Communications be- ence trouble wit the quality of reception
�erviccs communit � �, ����� �t has its franchise revoked next and long delays n servicing complaints,
for cmploymcnt ci�p�>n ii�ilicx'��r�� fruit miinth.
��� Dis- according to Le is Cromer, who until
trict residents. Johnso� Aflcr discussing possible revocation recently served s Richland county attor-
UCI would employ a ,������X���� �hat p��kccdings for more than a year, the ney.TCI upgra d some of the plant and
cxcluding thosc cmplo e�l lii� thc cvcl� R��hland County Council has ordered made some pe sonnel changes in re-
�>pmcnt of the system. TCI to either sell the system or take sponse to pressu e from local officials.
The DCI agrecmcn �i���� ���r � 78_ ����'n its plant by March 3. The council However, pr blems with signal qual-
rhanne Syg . i� `� �x,�,` W�„�d � latrr�ave TCI a 30-day extension. ity and service rew worse, according to
�` em P�Y L•ist month, Connecticut-based Ccn- Cromer. In res nsc, thc County Coun-
�T�73 per month li�r ha•ic s�•r�i�� $g,95
���umhly for a seco�� ii�,�. ��i��� �� yS �►�ry Communications signed a contract cil in February 1984 gave first-reading
���cmthly for p�y ��r���.� �� . ��� {nir�hase the 18,000-suhscriber sys- approval to an rdinance revoking TCl's
� '�t"'�'� a �� " �'���<<' �rni li�r an undisclosed price. Century franchise. That ordinance won final ap-
� 50 perrcnt �xii�qrati�� ratc,
, Which translates i<i a iui , �'���i�cnt L,eonard Tow said officials proval last Sept mber. At that timc, TCI
� trirt hon��l �-5.� Dis- In,i» his company will meet with was given six r onths to sell the system
�1i a press c�ml'cr ncr � C"����►y Council mcmbcrs ncxt wcck ro or rcmovc its p nt.
�i�;ning, Johnson rl;ii �e�� �����"� �" �h` �I'{�ly fi�r transfer of the franchise. Ccn- TCI Cablevi ion passes 27,000 homes
`�'uu�d mcct thc timce h�� �� 11� still �ury already operatcs systems in Dillon in uninco ra ed Richland County and
�hc f'ranchisc a rccmc t, ��'���� for in an�i Marion,S.C. �
s � "��«� c fran- in Forest Acre , a suburb of Columbia.
r��ixc DCI must p�� ��� �«��� Thc disputc bctween the county and TCI officials id thcy've spent $600,-
� ��+��t �4 percent of on��� �� 1O `�� �h� �ocal system here has been brewing 000 to$700, to help resolve the sys-
� Wuxhington's ei ht �ch of for same time. TCI bought the system, tem's problcro since thc County Coun-
' �98b. b `����� hy P��� �. whirh scrves an arca surrounding the cil first discu sed revocation procced-
, with service a ail��h�� �i� 3 per- �tin��aPital, from Palmeno Cable in the ings a year ag . —Snl/v Rus,rPl!
20
. , � �.��� �
;�.;.: �. _ , �`H.N,,.; ,.- J;;'< <�•`�� �'`�-.. . . .. � ..� .� - � ... .�_ . . ��- . _ .�:,.,- , . . . _, �
� . .._ .l• . • . . �' . '. . .
. 1'S PITTSBU (�� LA�1S:
KILL QUBE, CU CH NNELS CABIE�.SIpN/July 9. 1984
� StsH cutbacks fi�ure In No. �
MSO s s rategy
PT('1je�RGNO Nck�,ana,�n�u�' ' �
�K. �
♦msa'�G�aecali}•a�lin�e�bkqst arne� �
+nC fw 1 IYk[Y�fAI IfCQp11011 f� Acrc , Mo��Jh �Arm ���h s rcm..�r...n
o(fKUI�„Ao ars eoeearn�A abou� ei�y ♦ coe�ener and�nc.�IMm arrati.�.��
' ���o,00�.�a��.��n. m��- �/. M�•cie�rmu�ia.lfcu.�e�ner.�a��.q
Amnn��At eh�nja adcaneed � Oien al AT'y`�IOY ofkrcC�n�he Ol
� oiLuai. .f�►K ,y50 ��ns � '7C1 i ��h a remo�e eununl ue,r:
i. �ynJcr tAc b� � DDr �al lo �n�,e,ry��o e��m�.�K..�n�.u e.•,,.,
��o,� �ehu�sa el.miea oe o( fI7.S0amon�h.�•
- �Asnvwi'nunn.�s�cnie�tiaraJ �i�AW � thu��hcS1130�hcJt
I�tr.�/Ororr�m�OcAanna 'on�n a ncr:0U8Eco��sn�r..
• s:a���.anA�ev�pael�a�At cvrrs �ork I('••• io Fcin.Thn uc�.,�
. +:° comrM„ �"hutando.��Aouirr+
� torca w )r �rtan o�er �At ' TC%r/otiw Slr. aeC �h����^K. 7he
. ..ui..lesdOw� �a tAat �{i F�i/uri ��>�'Oc�•c�c�� mo� D � C�.,_
- �.TCI b•ea cam a'� t/// 4 toai' unl��59.30 unOcr T b•• ;.
- - - � �htM�u n�alm�.tn�Tt�yAabk� a�a0 'i Q��BE C�'�Py' ,
_. !- P�i�.Ay�sA:�K sllo( Alio unckar ly IAt��I!OItJTmVn
.. � : fnrm�nnrw�w� �w��dM.e ylsnt aete.� Mopamm�n
= nanMp�n�At4+ca1� uem. `I�aPOea��T l. acwid�nK w F�,
: P4rucd�l� urcr.i�e ci�.n•ovoNnr�o�n..���..
-- , _',�:m.'1. R Iw,c.
• . . -- '- ��'`-M��ist�A � 1�1. �ra�aaf a�urneo��cr�oinu�her �
_ :'�I,reA.i � ^'�t announc QUBE finaraeice!bour s '� or w!u �4•`.�ona�u,
� .'r ovb.tll�he tAree an0 Aalf °�ry hi�h iMdeM�of � ��A� Warncr eo mit°nl��in p��t. 1�'. niN�f
)ur.,.:d.�y�T�o(C)lw jp1� dispw�i eonVipuitd � Y-�r.��K�'pillin �nt w f�.e �IUJw�a�
� n""^�,vrvu.si rrwn Ilu.n. diretdp io a los�uf �our cAanMb.`IK sad.
. . � •�:Qfa:e• �Ae C�ni� e���oi(K,�I.TCI SKbKni'o� �u�ar.AreordinE i�/oAn �n� on.F
, P�r,.�. dso �� � �te rt i �ome aa��� ao�a�d�hcrs�ccm.�o.
. �ryA'..uA � t \� pa s �n Ame� ra. P t Oam ai TCI.N•ar�er Vuast�on e�hcr T
u At.�h�eA�srve. t� er �ha emveex._���o wA
. �7p.WV•al�enAe��.A m oms �.Kq� P �tncin�a f��luic q�c al' acomm��mrn�CI�.tl�..
.. a�rr of� �„a OLBE eunvener�� m�.n�h. nudr.Somo I.r0�1
Bru�her h.,ma.�.�. �tn.r r,.
- • `��.a R�ehard c.b1e + n.�i::�..
� � I oMra�anttov e�endcnt .f Fmc�.•.�cr. .u�c.. d:w�,.�. oU�.o.I..a�J�h.�ti....�.
W KtYII 111 t�IKK11C ����d �G �ha� �he c h'sb irrh+eaAle bureau. `ei ra�a.ed nFM.of�a�m r.rhi...�:n...
eeonom�e�of K�k. fur��X h
I T�I.�t kt►M e ' V��1 lar prupo�,;�l. ��hadd�.�I�('t r.�
l��K�•ISy�ur 6 nchiK Vuct.a���� �Aa qpaEdi�r .N�� �h��c humc..� �ha a�m r �•••P•�a�.�,
from t�t tq��ovtrnrntnl. f�lAt � min�m �'�a� N'arn• Pam'.�,..i.�,..e
merN� �Ae Irantk� Ihan ��m�rum and fo �m �f�0�h�n^�ts •r Aad m�d�a�umm��n
. � ea�u�nt frseehita..�of K'irner met'i N�ri.er, v�channel.up�uram. �hrx homc.�hrou h a�n��.�:.;,.
: lefor� � p, H Yhhatllm curt d.aneeJ �� �Odsd thai Q'arncr•. re� oU�cal.cun�end.an,••a�l•n�•m..'.
' °a «� t ar. Depa •Citc rr��:e. hOl BE y��em c�i.• TCI h uuld
C.H.C�p•r \IL��e f[�n�n "f �n�aro i ��v�d il�
O�ea�ed-Is •�ek �i� ��Ped nao.� �h cmpl..�ra a��hc . au�in.numn:•.:
� t�al T('1 o0u141�\d� 14�t IO,nal Pa.yl�e Ihc�'re�ul,,�campan�'. k�cl af 1 `-a�cm from�Ac:ur�;r..
.chan wme •mbcn anJ eumr�Au�ad",�'�••'un.•�1 .b�•'-''�:e���ne
fn �n ia propo�al►tfon� )ea�ui�hc nr.i�anch�.r.i.�C.0��....,.
' r��YI� J�1�� �W 7111tI � C CII\' . Illf 71�7/4111 ��(�7l1 IJ 1�11' VA���� ._
mes �o t 11 iAe TCI i�al�o��he lnnch�+c�o W. �•!�car w.,;anJ�0 1�K h,.�b,
•�•�:r �•• TCt. l'nOs� arncr.
u.n:n�.c. a nc� o„ �Aet rran� odd�ed �fetlietlh���At.���ambe �Ac nr� francA�.e TCI � �oJ••,:..`
eer J�su1ne. II �he ha A)n �o e(ft�N eMnne��ro�Aer�han ��K�a.ihc.���em coul " 1•� •
�•a�.�ai..�n. �Aa� �he a��peal fn ° luiurcd p�q• � •�. .
`.`Ider p thnt etom Inh ) arner Ame.a.7�� )��r ���. C��Y o/fieiala�A P����•�aA::�..
� '•`i`�`�0 �n0 a�reed �o �� 0 �hit. �he Oem�er-b�eed AISO conearn �Aa� �hv «duc�a.�,� c•�r�.,,.��
�•iCl�"nJ m�Ae b�neh���a��� �n�' an� �o tuesolida�t 2) loal on � . �hc le.cl of cu.ium n•�uuW �n;,.
nl�n�ldf 0 f1YTEtf ncl.ielo n t nauon �A�.c��am. ��.cn�t�pro.,Jct �.
.n.n �.� fKan� no eom . [h�e�nnele and io o(fer
, � �•'•.���ee�rran�i����m.Then ��on'. a�Atr mum�yeommunitatiomtAann TCI offcyb are
.. �c.a �tSp 1q�pioDaed Nnn,ns 'n�aQ �Aan lhree. In ad0��ion, ct p�lwe�tie �cAeOulcd �o �
��••.y�•�n�tr�ct��tttn•«tlowb nAtrs' iK�riChoict' four C'�!'Councda�alul i ��"'
� �..ma• an0- thannel�.rhieh fu�u�e �o�n���a�Vueijipm T �hea�.�r
O��tpon�a� •11 Y Y'VCh\ICM'TO�'K(at �ha members. Ou� lor�h h. �•nu�:.t
•::..a.e�.on uK��o�� 0 re�m unoe.would bt rtplaee0 b�-���ueA o!s In sAO��ion. �Ac. Aa.c nc:�
�CI oihual•cont�1�ha�'`tA'A, ^ Ocm�n askad �o aYO�sr Ec/un i -
4��eAannd� � � �o-�lo�ie lul�� : r�e�� h,-�r,��
. :ra�• uf �n��nta�e�n�-�A� �„ �.tA - y�ire �A�1 ciarv� selach�eA r�ou10 � � �o Aear eommce�. fram ��.,,�
.��.u�0a.p�_�� • a�� O�anceprmailbom�he���o mo.ice in c�'�ee..
. - - . Nt^4��e�nerea,:n� ailura ff�rcd�aeh ths����llbe �ur��r'��Aat�eha�tacon�raa..,�n
Week. k'arear anA
. -_ . � . .... _. 7C1 of(ieial� maieuin �ha W K�arn Wn o!�he .rreemrm
. .. me��ouf7A �rocr « it �Aa i��h� �o �r�nJc. ���
ritins�ioo uNvitia�nd��eu(rumloeal (o`��enh�
V of!�ht c�•a�cm. tu0jcci ���
�+munity comm��icacion9 m�llion on ����.�1 e`• �hc maror anC �n� c���
- � . hey ei�a a reeent Dro��am�. fe�n u�0 4r rcal. �
- Ma�c� tontumer�urr���do�t °'��akr�o�cr is oEli '�"••'^,
Co.of Pi�nEurrh.h�ch�ha� aU �Ae � N�ed�ocompl�..�n
� � )' �nd�u�st ^� funJa fr� � �Vviremcn�i o� ��.
■ bser�be�� men�al laal oj ^�h'�t arrccmce��n N'•rn.,
e mmuei4lion tef�ct•• �Bopu�t �Aer 4 urd�nan.�.
•olfenn�,�eommun��c �ecAn e Aa.�c
le aJdmon. olot�. iAarv ar� bcan cAanr•c. .-.
TCI tlsim.�Aa��hc nvrJ.a! tnm�n�.Aui i�'.� •�b�rou. �e,n�:.
�e-aommcrcial m��uuaan,tan 1.. P io�Av cnunc�l.n
�h m<Ihc ma)or1O0cCqlc�.ht�A�� Jin,
u.nf t��o rtuJcnual:a�lo�uJ�:�.. •d�•n �n:•�•�rm I l i�.
' °�'�r�Y•�M��ht_ u.l. ^L�u Y.n.Aur A�.
� h C":aAlchcu.:J(�.� "n'a�a.�h:..n:d a�rrJ Ay^��.n�..n, •
.��.•.,��dcomm�..•,i.��i�:��,.,, aGJ.Q �rn..� ' .
daDl aa�y��on W thocaMi�.q� �•��nl� ..�,�ur.n. . .
� t. .�n�vn.:alA "�^c` up 1w �
r �,I�y�^(IKUI. aie cuna'crn.•J aM. �h`/P�nn4mm�l. .omc.A.n�r• n..'1.�`,�
�cA i('1 ha. ut �Ar Aa�c '�a�n`- Fcm.� .
� r��re n/ler�n Prop...:J loi n. �.. L.�cn In�ha uA�.•c,i,i�.n't'1 ..:ti
_ _ ,, c anna•I�tr� C.. N'Adt U.a•�a.i� 17. �•wn.'.I.�lyadm. ..� ��. - � -
�• 53..3 Me�JI�e raCuctJ A� IU ic aMl�n�Ar cnJ. M~ra�a.n�e��A,.r���, .
.._. ._ s mumh. �At ��.� M� �`��ocA�n. �Ar� �.IIJn•dr r����;.
_ i_'` . . - .. � - • A..1�ben��llAa�t1.� °u�.�nl� ��/ ►c.' - . '.
. ' _ . . .`/ ._ . .'- /���VQ rkp IE1NCn r,~Y�i�lh'11�IN� 'V f`IAC 7 rl����M�IItJti'i1N�w l�I��A��u � . .�-_ ...
_ .. . . . . . :� arncr'� )� 1J1 i II�A'�r� ��irm .y �`^Jcr Icrm...1�AraF,a:~mrm tiy.Kw�h. � � .
- . � � . : � � • b�e•�Ae io Ot'8E. ur A . n�men Jp1,NSU..eMA.v..J,•r.e�a:\. _. . � . .
. .- . -_ �.. . _ � �''�tl�en.h•.�h.A M �k,�+cw�b.nl aP!`i.wcJ�Awi�n�h� "� � .
_ _'' �` - . C.N/� N�r.v�q . .
� °r Y +�X ��^•�-. � _ .. . - - �e`�C� � .
� ����� �� �
.�-.. .
.-,
,.
.:t:.
' � Csbls TV Lsw 6 Finsnce '
�
System Cap city How M uch is Too M uch? �.
By Dr.Hazel Kahan proba ly snouph for most sub- the dlHerences in usepe are much
Now that ths el�mw end hype s . scrfber . That research shows that smaller Ihan the dlNerences in cAan- �
roundfnp cabls fr�nchisinp ha e �hJrfy hennels account (or more nel capacity, whlch ranye Irom '
piven way to a more resll:tic • . �han 9 perCent Of�il vlewlnp,even thlrty-lhree to siztyslz proqrammeG �r
praissl, ths voics of the subsul r When ore channel• �re evallable. cha�nels.
can bs hear0 more Clesrly.And s . For ez mple, in ons Warner Amez Another way of Iookiny a1 ihe
scrlbers ue tellln u• b th Ir OUBE aystem,thlrty-or•so channels �
� Y eccou t lor 98 j��uetion is to ezamine the p�opor.
bahevior thet they place dlHer nt percent of all vlewinp, tlon ol ho�sehoids reached by each
values on cable thsn had been p w (S s e F I p u r e t.) A d e t a I I e d channai. Chan�el ranki�q is closely
jected. break own of ihe numben con- related to usage, as indicated in
The 1980's conaumer Is b r- trlbutl y to thla curve�dso may be Fipure 2. In other words,viewership
loned and mo�e d(scrimi�atin9 l an useful (See T�bte 1.) clusters sround conslderably lewer I
in the past. Th� pursult of pleas re channela lhen are evalleble.
1or its own seke I• now I ss � � Finatly, the OUBE data show
JusNliable. This dise�Iminati y, It 1 sapeclelly Interestinp that the a^other very fnleresting
evaluati�p cons�mer fs Impres ed sha of this curve varies very Iltile Phenomenon. The everoqe weekiy
no1 by quantity,but nther by qu �ty. Irom one aystem to another, even �umber of channels used by an �.•�:
Although there is an undenlable ap- thou h the Ghannel oHerinfl varles avera9e household is nine,ris�ng to
peal in the conceDt ol many C an- S�fl����a�tly. In systems A, 8 end C, �,
neis, this aDDeal Qufckly dimini hes Conflnued on Pege 5 `�T'
as the consumer understands hat
�' some channels are better han
olhers and thst some Asrdly Q allly ��o��•�
� a5 Chi�nllS 8t 811. PERCENT�OE Of ViEwiNG
I BY NUMBEN O�CHANNElS -
�t MOf� 8111�f�
Until recently, those in th in• tsyu•T e�
( dustry thouqht that more wa in-
variably better. We thouqht Iha �us! 10° -" �'=��-r-=.--
�� as the technoloyy astounded u in Its �
limittess versatility,it would eap ivate �° - .� ;
Ithe consumer. Fortunatel the sub- 10
Y• vrc.nup. 60 . . �__ . .. �..
scriber's own i�nate Common ense a vi•.�no yp •�.
has prevailed. adjustinp the ces• ic�mw.n.•� �o
� ses we nad allowed technol y to �
tosier. t0 _
Data from Warner Amez's UBE +o
�� operations snows that the cable o
lamily" adjusts its style fo ad pt to s �o �s 2o ts �o
new viewiny realities. Our re earch ��•�ovee N�Te•.a cn.��.�.
� snows that the number ol v ewers .�
� per set is Considerably hifl r tor
� cable channels than for no Cable r.ea�
Icnannels—a function,in part ol the PERCENTAGE Oi VIEWING
limited number O� Sl15 W Illfl 8 BY NUMBER OF QNANNEIS .
�ouseholtl hooked up to cable.
S�nce broadcast channe s are N„m�.,o� P�«���a��o�
availabie on every set an cable cn.,,�w VI�w�IflQ(CVTVI�UW�
usually on only one, people end lo
cluster more densely in fron ol that sy.aT� Sy.i.m e syn.m c
SeL On l�e one hand, this means � _�,� ��_
that narrowcasl proflrammi is not s 6�,� �a.+
S�.l 66.� :.
in fact teadiny to the disintefl ation of �o �s.> >6.� � i:
the American lamily;on the ther.It �s o�•� 6e.e eb.+
R+eans that distribulion ol 11 those �� 9s o ^
w.e y... 9i.� +
, :nannels is actually constrai ed by a �s �� �e 9e.s
� severe bottleneck. 70 90•0 9l.1 99� -
I Our research also has rovided ����J5 10�� 99.5 yy, -
�ne bas�s �or a seemingiy ereticai so„�u:ouee ,
! ��ew ol Ine cable industry's realit�es
— �2 . that thirty.Six �h2 EIS 2re I
i
�i - ' -.
.. �•�E�' �i'� ,',. .,
J,/ � �`�-3�
/ a montni avera e of ebout lourtee promis ,as always.Is somewhere In A secontl implicat�on is tna� the
Y 9
as sf+own in Table 2. Tne deviatio � �he mi le, whith attows quelity to number ol channels that survive as
• I�om these numbers is plus or minu be ma imized over e manepeeble cable matures is a lunction ol tne .
three 10 five. numbe of thennels. People recoll edvertising dollars available to sup-
Irom s muth ChoiCS. end wonder port lhe channels and a funclion ol
what t ey ere misslnp on the chen- the hours people spend watch�ng
Tnere are two Important observ • nels t y are not uslnp. And U they television. We cannot exDect either
tio�s to be maCe about tnis det . ere no usiny them,they wonder why the dollars or the hours to end
first. It fs estoundinp thet t e they a e peylnp lor them. without limit. But caCle househotds
numbera do not diHer siqnllican y A II Ited number o( Cable chen- do watch more television tnan othe�
Irom s thirty-three-chsnnel to • nels a s dolnp�Isnd-oHfce buslness households and, In man�cases. in. ,
sixtysix•channel system. (Inde d, w�th c naumers.Tsble 3 pives an ex- tremeMal advertisinq doilars have
A.C. Nielsen Company's natio al smpl ol the weekly reech on these become evailable specilicaliy lor ;
meter aample also showed � chen els 1or which Warner Amez cable buys. I
averaye of 9.0 chennels used ou ol Sells ocal advertisinp. A third Implicetio� Is that tor any '
an averaye 25.8 channeis aveltab e.) T re are some pood reesons 1or buslness to be successlul,it must be �
Second, the number nine Is en dlit rences amon9 the three driven by marketptace needs. We � � �
avera9e. and simply indicales at .� $yst ms.In System A,USA Network must learn to conlront tech�ology �
nine channeis are used fn e wee by sho s relatively low reach, because and esk what It can do for us,ratner I
e household.It does nol tell us w Ich US is on the premlum chennel then to be seduced by its ex-
nine.end,crflically,it does not ate col mn that Includes pay-per-vlew; travapances.
tnat tne same�ine channels er be- fu scrlbers have removed the A lourth Implicatlon is that maybe
inq use0 by each household. par ntal control ksy, wlthout which we shoul0 discuss channels�ess and
the tan�ot meks a pay-per-view proqrams more. After all, Proctei 8
How Much I� Too Mueh Pu chase—or use USA.Slmilarly,In Gamble does not tell consumers
The lirst implication of thls Sy tem A. CNN has a very hefty how many shelves Ivory Soap is ,
researth is that most tons mera �e ch, betause oripfnally CNN was aveilable on in the supermarket,but
seem to need more than lour r tive on a ehan�el that automatically rather whel Ivory Soap tan do for
channets,but less than el9hty r 1pb, Ca e on every time the television set you.Perhaps what is really neede0 is
T�is tonClusion is tonsiste wi(h '"' s lurned On. Even though lhis is a lot of research Into the benelits to
those reached In other stu es of I ^ �onqer the case, subscribers in lezta ol discounts on trucks and II-
channel utilization,includinq lggp �h � system became lamiliar with quor. Lswis Servlce Center, Inc. v.
study by Brown. Bortz an Cod- ' C N an0 learned to tind it. Meck T�ucks,lnc.,7/4 F.2d 8d2(81h
Cfr. 1983); AAA Liquors, inc. v. �
dinqton done lor the Nationa Cable Josaph E.Seapram 6 Sons,Inc.,705
Television Association, Th com- F.2d 1203 (10th Cir. 1982), ce�t.
�wW,i denled, 103 S. Ct. 1903 (1983).
II a proqremminp supplier oHered
oEACENi• E Oi NOVSEHO 5 AE�CNED a dlsCOUnI proprem to ceble
�1'(,'M1NN IIANKINQ
��»��,��� operatora, the ebllity of the system ,
�� opentors to set their prices would ' --
p not be restrelned.This type of sales
�o incentive proprem would not '
�••�•^�•o•o� 'o prohibit operators from oftering sub- '
�a,,..�e�e� w sCribers preeter discounts than -
n..c�.e so
.o those ofiered by e proprammer,nor
�o would it lorce a system opera�or to
` � accept the discount et all.While the
'0 vfllue ol Ihis type O1 discount
o s o u » ts w proprem will depend on the am
w�•c. ouec ����M�w�� ticipated fncrease In the number ol
subscribers, o( course, it may be a -
r.e�.� way lor programmers lo lempt cable
CMAHNEL U�ILI ATION operators into reducing the�r prices -
' with0ut violatinfl the antitrust laws
snuT
`""' "O^'" Mr. Rivkin is en e55ociafe wifh
u-c�.,� r.. u.� Debevoise d Plimplon, in New York
sow�. ou�t as� �.� u.� City.
T�D4 .
WEEKI �EACN�Y�AS� C/��lf C�tA1MW �
wu,.�e«a
c�.��.«, MN cNw csrw ue� Ceb/e TV Law d flnence
!ya A 17 �0.0 33.� 31.� 11.�
!1'�1� ! 30 �5.1 12.0 7�.0 7�.�
Sou•c� OUBE l�+�• C E! �1.� 1.� 3�.3 u.�
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' bleVision July 23, 1984
.�:
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_ .�,� _ � .
~ f� MULTICHANNEL NEWS July 16, 1984 '
�fil.au4�and N'.� r�aeh�rnta�ive a�r�r ent
W-A, MILWA KE AGREE FCC Reaffirn�s
QK SCALEB CK CCORD Tiermg Stand ;
uest WASHIf�GTUN. D.C.—The
Only minor diHerences re aln in MS 'i q Feder�l G�mmun�c�uo�s Com-
tor franehlse eoneesslons mission I�st week a((irn+ed �
warncr Amcc C�b a`recm nt calls (or � e�tY`"id� �'"<<' cable operator� Irerdom lr�m
M I Lw'�U K E E— ti���„ �py��nd private ins�itu�ions�nE ��rale reRulaiion on all but the
and M��Wautci s O��«o�T��«ommu - � b.sie tier.The FCC rulin6l��Y
u�ions rcacAcd a tcnuii�e resoiuiion 1 � buHow vtt.the eity�ould havs to psy(or l2�Iw�[t'vmed thu mwt-e�m
���►o(tAcir major«ma�e�ni d��fcrcnc t, y��►s are lht only ones that
increasin�th�litelihood�Aat the Comm f io�acti su�the�l net�cableqw/ich would be ,
�o���i� �i1�contidcr�hc MSO's rcQ `r���on must be o((ered on Ihe basic tier.
(or (ranchisc conccstiions by thc cnd of would slso havcrto pay(r�ihe oPh�ciiy �e FCC action came�(ter an
Juy. otential � al o! iu 19ti3 deci�ioa in
Robcn Welch.ci�y ulccommunicai nti and aintenanee o(the network. all Community C�ble TV Inc.ve.
dircnor.eharaetericed it as an a�rec cn� urN t ar�nY(ound to bereosts((eetive, P�
in p�inciplc. the l nct mi�ht not eva oa yc�natca. [titv�d�. The Ntv�d� Public
..Somc thin�s Wilt �till h�rc t bc Wcic caid. $ervicesCommiseion�skedFCC
Euttonad down.but�hcy art no�ma' r in T tcnu�ivc s{rccmtn�tallsforthccity tu overturn iu deciaion which
my oDinion.'Wcich said. Y crccn�.nor
Ronald Kuifit. Wareer Amu't oul ta i aiall �ct no Iess tAan 3 p
.ice pretiident o(corporaic a((airi.char. mo than 1 perccot o(�ht annual�ross �r�litPrdelivered pro�mming
ac�crired the s{rtement�s"a{ood d �I(or
rc� nucs��a(ranchisc fcc.but�Ae ci� �'s� on tlen.'Il�e PSC argued FCC
c�cnDody:' snd said thc compa ��f mc,hani m�(ot excadin`��perccnt i(�ce d�noth�ve preemplioo author-
vary plcascd. re I�tory eosts src hi`her than that.
�n �mporant pan of ihc com omise µ' I�h noud�hu tAa kc �.+11 jump w S iiy and unre�ul.ted c�D1e would
�asw'arncrAmcasWillin`ncsctos pante Wdueutaompelingxnias�uch
ccn� aa �ay i( pcndin{fadcral ublc �� m�lipoint diftribulion.
� propoticE packa{c o(concctsio ti from ��f�ation 1i pafud by Consress.
�h�(irm'f rcQuetl for permission t form a Th� �`�i�m��� i�so tallt (or tht Mil-
according to FCC documenu.
�oint �cmurc �iih Viscom Gblc(or tha W u��c Aoccss Tckcommuoiaoons Au�h- In�WN�o�yvoia�ok.�e
�omb�ncd o�ncrthip and openti n of the y rommi�sion said it broke no new
bt�t+�ukac ca�lc syttcm and Via om's 1� i�wrc fcct�ofPoffice tpuc aX War� �o�d. but mercly reitarted
suDurban cablc sys�cm�. mu'�hudqwrun in�formcr Schli�t
Under�he tenutive a{rec cet.tht �eWin{Co.pbnt.Which�•ould bc�'onh �nd ron('��the e:i�linR eutt
otfK�of ulccommu�icsiion�W 1 rccom- . oI lhe law.��❑ .
mcnd th�t t�c Common Co ncil �ivc
prcliminary approval o(thc joi t vcnwrc about SI1.7 million ovcr Ihc li(c of thc
(ranchisc. if pcne�r�tion ttayt ai thc
and fi��l �DDro�al o( th< < cctiiions. rocctcdu.Sp�
F�nat approval o[thc joini vc urc�ould P ccivc��oul o(rabout 58.7 mJl on und c
bc conunQcn�upon tWO ihin;s at Icasc IO
o(i�c 1��ubuPoti Would havc to+pp�o�� ihe ori�inal (nnchiu aQrccmcnt �t �l.S
i�c.cniurc Gni.+nd�hc ciiy W uld have w �nctra�ion level.
bc w�it(icd ��i�h �hc final tiult o( iiti What must bc tcpt in mind ii �hu .
tontinuin{ �nalptit o( the (at o( the Wckh'so(f�ceitmakin�arccommcodation. _
.cniuro. The deeision-makin{and ve�o poWCt lie
�►'arncr Amc• h�d re�i tcd urlicr �vith tAc •Idermcn �nd tAe m+yor. Thc
cf(ont�o iplit lhe ittuct.ta in�the joint �ommon Councift ulilities �nd litcn¢t
.cnwrc WouldmatethaMil aukcesyt�em eommi�ue it ttheduled lo tonsidtr tht
cati�cr to fwnct. �nd ��at apantin{ ihe reeommenda�ion luly 11.Wdch't goalhati .
i�tiun could jeopardi« tAc cnture. pecntoectthematurwthtcounalbeforc � -
In �no�htr nou��or�h p�rt o( thc �hcendofluly.tothatadceisioncouldbe . .
i�rccmcnt. Warnar Am a aQrccd to madc bc(ore IAc council��kct��t�nnwl �
comtruc� �ualcd-doWn 5-milc insuiu p,uQutt«ca�. _Tom H�;nrn
iional nctWork �hat W uld reach al �.
}1�I��aukee Dublit inet� u�iont. tom
�+o�unn�o si�itcf.^Thc1od e�n�1(anch� � - -_ 4
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nw�rttet—w�n D�b�h�»'n cprW'0 h �r�at—OrOn�d N�ir ootb .
� �no rwrvrw�ooipred Orw�d 't vdvt o�C4 oort�prn4�ar�rpw�tk�p:
VfeaE�xyh
� wr..po+• ser,p ,d,Mrcrix
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il�ae ntes « Rais�ntes •
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���,� � Ssltlrtwr� M4ml � _
C,Lc dwr�e�s p�y�,,,,�y syste,n
��� fQ� Reise roles
.. peiey service
iiaiu eates CaDk not tutsAeO.Out oanpu�es
J Mve arKract with dry. _
. , 'Ww7'rr��m:e N�yrrn "q1Y-.
SO✓b Cir{��w0 !�S�T 1M��C,VSA t00A1' -
covEa sTORY � ����
.�,,
Cabte `_ y- r �- _
x: w-°� r�
� �' T ' �- - � Ki���t:�M�t.`'h= i
p�cture ,�. : _,: , -;� : �:.�:�:,
' ' r",€y� . :`. :`� '' ,; , c. :,�_�
""%��'``-:�--'�" • � ` '. _ ;�`,� ..
z�arken � _ ��y � =;�::: �;
. ,� �.
� ��,_`
Aher the �' �'�""d°` . -
tor tls� D�Y .k,
.,.
battle, back �,. Ao.. . _ �.. . ; =
to basics ���, m�� ` ,��- :hb:::..::�r'::,
m�ay .�e� �:�.< > .� ��"`�•�_-_._._ _
� k mat !I 1�ll0� Ml- 7r���•-:�: ,��� - �- ��':r.t,:.',^i�S-�•
Gbkvl�od ddey h'O ,'��.•'-� �+
�>�x'"�.�°'''��`�� �'- `�„��� ;�`: THURSDAY n,,
compeny becic out of se! p aad mW � AY 3. 1984
Cz+�ts for puOUc ux. �`..,^
lc't oNy Nc late�tklrtnLsA tdc Eettk an aDk
lele�on compaNes anC dtl wcr arvke ia
ln Mllvautee �conaltant alA receo
do.� cm me mort -
Mu
econo a e
M e npoW p� und!alrea� dvm Ro�-
:rs Ca0lrsysiertn�peeo Up pp cv! py 000tLlry _
to 103 ar+d U1t In nte Rreze. .
In El�duea�cros tLe U abk TV mina
i
; i
.�:
_:�::-
rr
:r-
t� �� #
- ; .-
� � �� ���
�
- - ' owth slows .
Ca e s .�«���.
and tWOWy�er� tront DeYrT��na
Contleued 1 m lB p„erpulid�nL plu�uP
NI o(� � c�w�n°f t Icn s�+on ot ot neeAY i7 m1111a4 p�� Dronn 10
lo years�wy.Hernu+wrskl seYi Yci tlu
c��uo .•aM tosh� r dc�Y��"'o ctry rt+ana�er Aas rocommended dlsep
aoout 60 c cts xnD � provsl of contnd d+antes tnet Hertnen•
Wa�teaiur sucn ss nom s+�u9D�^a �D a�9n�ould yrve i10 mlllioo.
oankin8 r uce(ree uM ��nt�� "You dont JuA takc Nem �t u+cV
Uc and ci InsUtutlonc Hcr. vw4r snid dh' °ro�ute���NtP
-►made a mistak�•� �� �� -UtJas Ney�D ��..
mnnuwski DreydeM o( Miam� �� rt cN��ouldnY De W� . .
vision. c IndusvY d n l de�etoD �in M1nn�a0oUs tDt CitY Cauocil let
.e tDO It w•ould" cs cut caDed�Y�^I 17 the�+oeK to
But 1 PoUUcist�s. �o otlm takc R� ntes. Eut Nc �Yo� "
Credil(or drvtringCi 1ec�T1lolANf �ked. A tontratt ls a contrsct' said
dca,v up In arnu• r ponald F��•��CWm��Y s^
"They Goot�ent to ►��N�• ��ls decisloa sa�int
tailurc o Neir con ��k ��yt�i1.6 rtilWw� In MilWsu• �
d l.ea e of CiCes la «� vhrnu Ama'f p�0� •
Nor Ney�+t t p�c uD�T��r• Irom 108 CAannets to
Wc� d mone�tor blic acass V� kK to Nt a D����els Iroin 18 to
�m ng Nat caDle ompaNes ottered 56.�ducc pu �����for`•nai
N bidd ng DsNes.ln il.aukce.hu�C�E �s^d thar4e �c Xrv�tt.
� a er Ame: Dle Coav�unlcs� �ould de�e Deen tree bas�
h to�il0 mlllioo t�Oked liaJc sY�Da�Y�^dl tonsuluna
tions l .is Oeini �� ����socfates crdwted Uu reVuest
p��g lor loul D To py a nsolve WeV dlfitrences.tJ�e
. 7T i6�filioe ceD bustu ea k N� �dusvY�n4 dtla d'rt�B�t con��.
eition n '� m ion yq+sl Interventlon.but Ne r`'o Qoups
c� a r ic � t e Ea�e Dee�ttnable to tomVrom�se ance
� �sfct�al Calendar lesr
or emwm c an ��� �•f. �979.A s�oR een�
�er o � � ens Ne cRan�e ol�ctla+Nis Ye�
s n e o �d�:strt+e t tor Ne ciu . m� It the lnd u+d Ne dries ca�sa°�
c �c ennt�s o er. �� e r to De DY acine the
Nemulves, '�ble
le��ash.feNtr nita. A n� �K�°•R«.0
.. early eable In trou0le In We Dit 1e--
Wa tt Amex C��� AcCOtdinj to oble Indu�d��ed
p��.u�u-E� bodY went in and bid 7a+y Hoftman the IndusaY �'
mucn. and e �•ere pro�ay V1e '�very degant solutSon te a pr�lem�+a� .,
Warnet Amei p��d �d^�t�-����IE Ntir vision ol ex•
v rst ottcnder" la t963. pnnCinB DeYond�^te�nmeM to u+e cia
z million tn s r+ax lo�s ti�,.ho upp�d thc entc by W��B com•
laa J anuan� tCe companY D�� ��„e Dids.ln e sens�mDle N ts a vic•
ive cutbac In Its D���r1� � �nlertaio-
k anC Dallas Risrs.Md H's a•rait. tlm oo(fa f peCk�ln batia—
Cicy CbuncU apOro"�to xU tDe Pitts �nt������cuaom•
uB�+Irancn� w TNoCo��rioc�t
.,.•hicA Indicated It��R" tr xrvice. �und �iN t►�e
-You start rt��+6 ou�l!
utt ser�ice. ou're putti�8 Y
Co: C�blc Communic�l�oos �ss� W�o� ^�Hennsno`�s1�S°Ys
ear rcncg ted convacts �� �In tDe eext fer � ' .
NeO.: Ne• 1� �� q+enne rilh e top
Vencou�er. .—WAerc.vl m��e e�o k nther Nsn 10�.
eompanY ro d 6ave Ina t6 mlllia+vlUr aPO�� �more ro I xrvices tn
out cutCac Cox t+ss al1 Dut d1a99��� ��� o Y. � °�o IndusvY
tWo��ap ln xrvitt. .orks surv1W+8 �^�
ln tour o Ne� YoAc �Nrn�i�on to raesr'c���D Fros1 4 Sulliran AJreedy
pugRL aD1e eompania ga D� .
els to��70. CF�UDk u+d Ne SsteUlte Ners C�si*
11m11 polen al tJ�n� •�Cn � �� al p,vt fslltn Dy lLt hY4de.
Miami Dlevipoa R�ponal sports atrorks, sucn as
uD nnes ot tS.000�deY for ooc mc�tir+8 N �e Balumort
��ro�� s1�oK�o� x�aaty eaDle Home T�D��� y�rou�but
���1 the urDan awlccl ��M ��ve a
coTpani ries Htrtneno�'sk19r'a'4��' �1da9rtaE Cro�ray fervkts JOhn Man• .
In 1981. 10 years tvay.�tcordit�
eC c�at S �, ot Miamfs I70.000 s�' ��ot���y�
holds r'O d peY S�0���.� � Al�b rtu as tAt comc In
svbscn .spendina eDout t29 a ma�tL. e ,
<Natiom y.S7%ot USA�eus���° �m_tpe r�suJt ot a Fedenl Co'TM '.,,
�y�vh rt CsAle►s�vallsbk Psr���' mu atlorts Comm�°� d��on Ins� .
erag,e ot ft2�monu�.) k hll io D�m��° oontrol of pM1ces
Hc �+sYJ Dbm►SCC l01 tsanne _ ...�� rrr..� nt tre CnmmuN�'
v1tR N sno�s,vldeoteL�ocs�e bsN.le+t �tenna Tetevt�on A�ociatSon e re
� Sl10DD� !!1d iK11AIY.B111 l�tR M� �C�O DUOM1 f�Ol�TCV UUO(1. .
u+ouYJ+ D�"�"� tor �0 c�aaneh.
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• SEPT -19•8�
���� � �������
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� � �' � ���S��a�b� _ � f�J�
�•ill be rr�e r rd(rom 7 07P svu�re feet�a
8� JI\ .KHIC�KTL �7J0 c�u::t� S:ud�o tpatt u ei
Ft U tt'�I�er �rr.si�e totonaln:cl�n!lbc tmalltr room
M'i?:!::lla f:':rt cad t�'rn .:rcm•
wiU rrduce cnts for Groap W':
menl, �Ae P��n q'.K'=sh'v.�:�n Coun:ies
GDIe Commis ion e�rlier t s month ��o���ble,nlAcr llun ubte 1n
�ppro.�ed te�• al amrnEmc u tn �n
��tecmenl b' �in[�'ired le ��isioo lo condutl, Wi11 De Inslatled �•herc
narsssry. Althou`A It �ould not ca�'e
�}�is tre�. mueh mooey,�Cro�p p'�{+���++�^said
TTe s nend cals to Group "�eontr+et recently, Il �•ill reducc Ne �mount o(
,,.�N���=e ies in l�e csb e[nnchise necessary eoil disturEance;�nd
tertiton•�'�r reQuested by e eompany ��
Deuvse of "� eA�n(ed m�rkel." �e eo�•�menl scceis
Buially.th +os)'6nandal ictura'llut , '—*edc:u�int
l�t'v oriEina proposal Was sed on are - clunnd b�Uo"•••^7R0"�'�slinQ' d�
rol Aoldinp e.AU tl�e �n es In lhe el�++l.Spaifieally.suDuribers in Korth
fnncAise� emenl art ex ted lo save Sl.Paul�'Wld�hilt��ie+ers in Oa\dolc
m �onso o �rs o �u �n eouncUmalin[ �.Wld De recci�•ir�
o r+iion c ts. . �nd at�plc�ood
Induded 11x chanfe+ proQnmmine d'vated�t lhem .
—nduc' U+t numDe d ��•aUaDlt . GROVP W k acyeelad. to ��in
c�anne s om l71 lu .G ou K'�s U'�1e markeline Ilt tystcm lhu�•eek,ctscline
rocess o insu���n �du I uEle s stem, �����huGend(�cilllies In W'hl�e 8�r
t�•ou ut��•�e o o e o e n�� ke and Oakdale.TTe!wd-eod�l Oali•
Nc initia ene inn se.TTe axon d�����K���for tompleliot�Ller lhis
u e. + e a°, "01ild� �e• mentT.ThaefaEJilies�n Ne ori�ination
ti.•�tcd •Mn It vas n cded A iu^lLr �N���e uble aip,rul(or thie�ru.•
cT,an e ln Q+e ?:oM SuburDan u - ' .
Ide�isi e stem lhat elu es Rasa e . '
uved rou K'� out millioa• Subscribu ntes undet lbe propasal
�pprov yt. i Would �Iso e1u��,
'l)ndv lDc original pro�wb
-a n;e ln the ul�coirv d lbe �+�"ould have received 6�clunne4
uDk tienal caovcrt from T.erllb le '���O�r��Q.%�month.Undei
{Ae nev'plat�ll�4 Uv voutd It�tSude D
Jcrro : �hinne4 tor a.K��moolh.Fw 71er !�
wbctribeis;r'Dc would d'vt cbcelved 1 L'_
t•i0 o te lTx eAannch tor is.95 per monlE.11x nn pla o
— i ct�(f rcou uUs tor 66 channcls lor ri.YS.Pnmlwri
{ou icccss it�dio �ill u servias �v u ome ac itt a�o.i, .
r�„ Lluo " • it ooct,:as{o roup � rp�iY95 Ic ito.t5 D�f�nr.n
`µ..i �e� Pro e co�,vny ulQ ,
�t( t It.ould h'vt 16 persons.b+i^°"'It
.. ls te nire them 'at�mort rusor��le tn addiUO0.v�p W�"^ntees thabe
nles Uwu� SeplrmDu 19a5. Ibey�
F' ' � pro)aet Tl'u 1 nles lu mo+�wo dwDk
� � � by the md d lhi,iivur tn nchi�c
� m�aw�i Q1iD an m+i ma0uc Qa°'�
..Eleciit ru• bi�ellmSn+ted beuuu .. .
posslbltGcau'� proDlcau.aCra�'R! Tbt R�mtty���blc�too Countles-
esmao.u{d olbv met�ods'vJft 10' pElt Territary Inetudes Narth Sl.P�uL
roviSc.hal'oc��m�uDleuc� b auL� k'.iplcwoo�Oakdak,Lkc Elmo,KTJu
'�.�:.. Bcat Ute. BlreLwoed. M�Elo�nedf,
WWernie, DcO�•oo4 V�dr�ls Heiehia,
� N'►titt Bcar To�rsluD �^C Gnol 7o��n .
—U,e loc�l m oriRintioo atuCio ehio �
� C� �s� �
COVER STORY M � � � W A U K � E E
.iv.��..•
U�C/ili the �^=
y =- _ �
do the 'o ? _��_
J �� : -= �
Cahlc operalors are winniny m �or
(ranchise concessrons(rorn ci( -y.'-
o�(rciafs in altempls(o make sy (ems .�,, ' 3 , �"' �"'�'�
�....
:,.�. �..��.���.���
uiable. Cable conipanies still in(rna! °-:--'° ,,,,��•
.� ��.z�:_�.�.:�: �� . ..
c n n� �.3."'-n _
conlracl negotialions are also " ' i t��i�� '
re ueslin scalebacks(rom(h ir — , t . �����
R 9 .a. .: �i;.�l y ; n� �� ,+R .�
inrlial proposals. Are these � `•�" . � ; i !��� _ �;: "
. . " - •
; - � ���� - ■�.�-
scalebacks lhe resull o("bart a d ---- --• -•�•—••-•• � ;
,', � �
swi(ch°tac(ics, ouerop(imisUc. able •�;,=� -s '�.''"-y��
operafors or unrealislic expeCt trons .t�■ ■ ■ ■ ■ ■ S �
o�cable by all par(ies inu�lucd : � -��.,-1---�~' ��
■ ■ ■ ■ ■ ■ ■ .i .... `�'--f�;
By Saliy Russell � ■ ■ ■ ■ r r ` ���j .
,.�-,:_-.
o�'�r the pasl dciti�l�lh� '.�hk �-�.R.e.� _-- �� `
industry a��rctisivcly pursued bi citti • - _ ° '
franchiscs,oniy to find that thc u han �� ., � ,,,,��,;;; �:
cahlc ntarkct wasnl thc prcimisc land _
lhat niam�thc�us�ht it w•nuld hc. .#: - ��~� �� �,
Pcnetr,�tiun tiir�hr nic�st Erin is I: i��in�� `� -
Fkhin�i in�lu�in r��k•ct:ui��n., u. r,ill�
���II h�l���� t(1�k•ri�•ne ;in�l. �n th r:�.�• ��! N1ajor concessiori �1: /n hli(waukee LVarner Ame.r ivo i
U;,II:��, a. lu�. ;�, ?i �rrrni !'.i -<<, permission to de(er interactive QUBE seruice and the �
h:�.�c rai�u,th,�t �.crc cx�kri�cJ i rearh system's second cable, was re(ieued o(its ob(iga[ion o �
'_-�c� I cir?-��i-I h:,�-c h��vcrccl c-1 .cr�o cons(ruct a local o�igination studio and scaled back i s
�-tei-I. C��n�tructicm c�stti cscal•icci far I insidiuCiona(ne[work considerably.
he����n�l nu,.l ��4kr.�tur�� iniatiini i�_s.
«hil��un�tru�iic�n srhrclul��;pr �C�l (�u• H;iu�cr, cli;iir�ti:�n��1 f1au.�r h:��i.��hich ulliin:+t�l� �1 ni.�_��l Ih�•
h:�rci (�� ntirt � ( ��niniuni�':ui,�n�;inc1 f��rin�r�h;urni.��� �t;�n.1:n�_:�r�1 r��iuL�U��n �ftii;iahi�
•\.:i rc>ul� ��t t}ir.r an.1�uher (a�'�un � ,�(\i':jrnrr:�nic�. think� ti��:it ih��:if�i;� ;�,•�r.�i,,r�n th� ;��r��niun I� �1:iniFk•n�J i
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� �lilli;ultii.:�n�l (:�il Iu���in�ulliiirni . :ilrJ h.ick i�� in.iuiui�m:il nri�r��rt. •,int�l�•-Irun{,. SSII�\llli u�h•r.ni �n
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I ili.•in .�! tli, i i��lit ��ri�r. ��ultui�� Ilii in iii.: i,�����.i����nr ii. ln�;.i� inli t.icii��' ..•i�i, .r���n�l�:�hli:�nJ .r�rr:�l��ii!�ii .n�� ..
I ��, .,�. �n t��r.nn irn+n�'� nn Ilii �•,,I�•� i. i ��1 rini�in.u�'��n� ��! ii.��uhli. .i�.�� �. Lirilu�, . ��in�iin�� .iitlii;i�.n: , I .i I� ��.�
• I lii� Ii��•.n:ni. h�':ii���� Itrr�ii:�n . uJi��. �h.�llin��i I��Ihi' Ir.inilii.in���r �i.•..
( ��niniuiu�:iuun.:�n�l (��rnirr rh�rl ■ In I ui.�in( u� ��:i, �ranli�l ■ In I):iiLi.�1'arn�r A�nr ��•��n
i�iiutni.ii (�ruu���V CahIC. llunk,Ihr � •rnu�.iun t���H�.t�iun�Ihr cificrin,���I ;i�i��r���;�1 lu cl���r rum�ni�'liun in.uin�
�iti�•.h� :ui�1 larg�h:�vr txx��i rrs�x�t ivc I xl:�x antl hcmir.rruriil'�crvicc�.�nd I�i���drn�it�':irc:i,. 1��cif(er:�It rn:iti�•�
• ����hr n�r�l.u� lhc I�x::�l c�ihlr<qx�ra cir� t i�:ir�ivaticm��(it� in��iwti�mal nct��•�,rl� �.�irin��an<1 hilling srh�nirs tn apartin�ni
;�nJ��ill iuntinu�Iu Fk�ii in thr �va c��f :ncl Ic�dr�ip thr��dist:inl si�nals. rnvncrs. i�i increas�r.�t��on a 1 hut h;�.ir
th�r:�..:�,_c nf fc�icr,il�able IcLisl.i� m. ■ In Vanrciuv�r. �Vatih..Cux ��:i. scrvii�ancl Ici rcmtinue t�i us�.
!I����r��r hr Iklicvc�Ih�r� u-iU b� ' a •rniiUCd t��ticlay Incltix.d�(cr tnirru��avc t��link tli�trihuli��i huh�i�,
liiilr hit inur��+t:i�hakcciut" in ur in �m�tructi�m c�l a third puhlir.���c.ti �h�s����m's hcadcnd
r;�hir fk(nrc ihinL�sc�llc duN-n. Li c �u�lic�. r�ducc thc size of its in.titu�iun:il ■ In Piusburih"f�Cl'>c� x•�s;n,n,
K���i�. i;��•,�,:�������i�<<`�na� in r:i: ` i�twcirk and rhar����i hiehcr insr.ilLitinii includ�thc elin�inauun��I i�� , ���:n
.�h�•r�th���ricin:il (r.inchiuuc ran't nakc cc�i�r hard-to-wirc�rcas c�utsidc thr intcrac(ivc scrv�re.a rc�urti m in thr
.���,��' ii. anuthrr c��x�ratcir will cin ic in ranchi.c��rea. numtx:r cif �rcierammcd ch:n ncls Imni
:in�!t:�i,�u��r ih�s�.�cm. "If:� s��' >ncl ■ in Pc�Rlancl. Ore.. Rorcn 63 to 4-1 anJ a�uthark in th���orklc�rr:
��Ekra�ur ciiiiics in and buys out cha ablcsystcros won reductions in of 38 perccnt ovcr thc ncx�t rcc ycan.
fran�h�«<1:�� :i clisruuniccl price�+lh:it rc�mpan��contributions for local Elsc�vhcrc c<�hlc���xr:rt��r ha��c
thr.•;��„i,�l i.ni�ir�in line��•i�h thc urigina�ion and public access. reyue.ted Iranchise relicf ai i �till:ur
c;irnin�_Ewt�ntial�if thc sys�em, ih n it ■ In Los An�eles' East San w�itin� lor a dcci�iim frcim he
N ill t��a �ine:vs��m."h�>ay�. Fcrnand��Vallcy.�Unitcd Cabic franrhisin�!authc�ri�ir, In �\ i;nni. (��r
[3r�,tncr Ri�'har� Fiiicnrrkcr. �
.u�a�r�n��ncl�n���f f'i��.hur,�h'�Cat I� D A L L A S
13uri:� i�.i�ntC�ch:il �I.��tti�:�l�i(t i� t�.��y�:,��t• . . .
li1(.:� �il����flfl�fl'�Ilill.11l� �C�C- ,� � •�k t � �d'j'ti�'1`+-'�:.: �,�tilY��.1��'�•-• r�'.:��~�p��_..o 1�14-� ir- _
(�n��ii :...u.:�Uun. In�_ h,i.h,nccl il �. � � • i " � ., ,�i� , `
s.� t..� tS�. � �:`
i �l;l� �il'�� ��..1i1 llll II11�1.1I 111\. � '1�1 �l'.If ���.��.Z; .• - ' . , t '
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:i r ... :.r „lu .�.i�.•in I��i j�J�.-1 i iilliun — . - `.�,__."_.
:ili:r;!i:,�ri_in,il Ir:inchi,i� in���iii - �. - - -
ni„r�ti,.in ti I(Xl niilli�m anJ I�i.t n ur�
th:�n S.�i inilliun in th�>y�(cin. E3 liirr
tak�n_ .,�ntn�l in f'i�i.hur,_h T('i �v�n , a ,�
.��r .� , �,��t.�;!; ��,n:c..i��n, �n u n:�� '` 5y - ' " i
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I!�Ili, ' • ° =
_ _'• _ • •,Y: . _ ,,, �
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Ih:it I hi'.�i��'(h�ir(�n��CCfi��n� ���C i - _ S - �;�,,.. •=• : _=
t�l��';;\ �.�;'(I1111�Ui Ifl(fIC flUillfl�f( ^� l�v
�iij
.uh.;nh�r.ihi� rn��cil. l h�� Ei ii�it�c) • �j ;_
a niu�h ;: _h�•r��ru��th than 1\'; IqI � � - .
. . irn•rciui. � ..j.. �:• ' „�
. I cl���� t inincl Fkin�,!��ri��rn �� cm�� -
r� � - «. _
h�ri. f:ni.n��k�r;ukl,. ..hut1' rhCCn � � -
i II1\i . �.. � . . . I , �Z, ' - - �
n t�ii, n���� :in�� !�)7(� :incl .�r. �: F �.�. r
I � . i:�� ���n1L' fu fk';i �c' � ;S':R . If .�.:.� : � �
I �! , �r�Ihi�'i 1� :i� fi� ir, i+�� If �:`�-+�:ar, ��� _ �
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--- ' ' i
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i
,1��i/O! COliCC5S(OIi.S -z ,` t� .� . !
i, r , .i�'i�� • .�-,�.�,�--2- ���1.-�- �—
�� ,� � s�.� -�-� ��=�' i
� .i� � � . . � I .,,. .:i� ��' � �- '� � - _ .�c-i'S .�---.__.__. . .
.tl���;........ � .;i�,.. .... �, I�;i� .. � .. r .{`. . . . T . ..-.
IIin.�; . ...... ,i:,,,i ..,., n: In � . ,�.,,. , �1 � " %- ��.���
; -
, �, i ,I� � � .�u' .�.,
' � � � � M.3jc�r concessioit #2: /n Da(l�s 14�.�rrt<�r Arnc.r �u���i .�ip �r<ival [c� �
if. i �ni� . I �
� � � � � , ;' Acfer conslruclion in so�ni� lo�v d��nsi(y :�rc.+s. (cr ��/(c � �
� i . �� i , ih',� � -
i i r�((ern.�ti��e ivirinq and hillinq schcrne�ti to .i��:+rfrnrnl ��un��rs.
� � w �. �� .� i�. ��•., i ' - . I
� I lc> inc�r.i.tic ratCS on al(hu( b:t.sic .ti�•r��i<'e .���d lo c'c�nlr iu�� f<�
i ..��iF \\ .i���� i \ n�,1_�,� �
� � utie� rnier�����:►tre• lo (irtkAt.tifrihu(i�>n huhti !n fhr tiytilrr i�ti i
� — -- _ --- ..' �
.. _ --- -- ------ '--1- ; . n�•.���,�„�i.
- __ -
_ _ CahlrV�•,�on�lanuarv 14, 19H5 ?9
. ��" -s� �
D E nt:ya�m:irkrls Ili�y:�r�I�x�kin mc��c:it
V E R �.x-«-�.
..Multi�ay(xnctraiiun was c�ing
tkn�r:it thc�in�c(pru�x�vil���••rc
• w.�aA whmiuc�ll.�� firesn:utcxnl:iin. . "Pr�q�lr
..�s-�
'._. ;-.�.-a ha���,inc��nt�rn:i littl�di��n•h:in�rif
�ri
.:",'�` ��ro:�. ��•iih n�ulti�r�y. . . .O�h�rs�h nrizr Iliat ,
�_'
,;. � �� maylxt wmc ruswni�n:�rc u.� n�
. ,l �" _ � vl(JC/ll'BStiIUI'fCl'Of(�l'f\. WI1C l Ill:lyfll
�� � �.�.� � thcy uscd to h•rvc twu or thrc pay
...., . _
�•� ... • •—
... —_� —
� .... _=,:.-....:-�.. .. — scrviccs.thcy'rc nuw taking nc scrvirc
- I�' '` - and supplcmcntinb it with a r ntal
� casscttc now and thcn.'
- ' How�cvcr,E3resnan adds, c has
., :II\V;ly�fclt that somc of thc rojcctions
in somc.ipplications for maj r ciry
' '. franchiscs wcrc ovcrly opti �istic.
�• '"'� "Thcrc was grcatcr sup�x� thcn than
..�� thcrc is now for optimism, ut 1 think
"`� cvcn thcn thcy wcnt ta�far Thcrc was
somc justification for the n mbcrs,but
; in somc cascs,they got car ied away.'
- • -� ?E-t � < B::>ic pcnctretion projcc ions arc
- .�.� ' i
�,,,,, . _ another arca wherc realiry as fallen far
`� . > short of thc cstimatcs mad by cablc
+ -�.�. � companics in thcir franchi e proposals.
- (n somc cities companies rojected
Major concession�3:I Denver ile Hi Cablevision was pc;netration as hi�_h as 65 rcent.
allowed to de�er activa ion o�it second cable and seueral Morcover,many urban s stems ha�-c
pub.ic access jacilities pendin settlement o/a legal found it difticult to brcak ut of the 40
cha(lenge to the jranc ising pr cess. perccnt ranic.and somc re in the 30s
or�����rsc.
��:�mplr. \tiami C�hl��i�i�m L•i t t�ihni�.ill�'and c�oncimi�:ill� ��a.ihlc. It� Thc Uall��s)'�tcn�..+t � p<<cent
, Fchruan•��•un�xrnti;:iim tu dr�p thr thc pn���»cc1 a�_r��nicnt (or�r�:i On� i� �kne�ratic�n. ha�b�cn pla�ucd hy
rcyuircmcnt that th�;�:t�m h� \1'l)-��:1\. ��»�CI Il\':iuthuriti��.�itv of�ici:il. ' cu;umicr scr��icc prc�hlc��s,and cit�
Hu���c�•cr the I�kal<i�xratur ha. askc�l to indic:uc th��•will offcr mo,t uf ih�i;e ��Itirials sa�'thu;c pn>bl m;ha��c .
rh.�nge 3'_<xhcr tranchi.�pr�n• siun:anel niare f��•orable t�rnis to thc Iranchi>ees contribut�d tci the poor �netratic�n
.till i,��:ii�in�� t��r�it� �,(li�i:il.��, in thc�,th�r fi�ur ar�:n a.���II fi,�urc.. H������'cr. thc� uhlcm in Dall��
:iEi�iuint a���n:ult:int t„r��ir�� h� Oih�r�itic�ha��>�:�I��h;�.k th�ir :in�l�I.r��h�r��x��ncl, •���n��u:�ciiiicr
r�c�ucs�. r�yuc.t> (c�r pr���xi:al: in mi�1-�uur.�. In .�n ic� h:�.:l�>. :�; Drc, cl Burnhani�> i
l�altinwrc c>�iicial�>hav«1 th� mininiun� R�id� cxplain>: ��Thc t ndrncy h�;hc�n
�h:innel ca�acit��reyuircd un�kr th� RFP tu I�xik at rlas,ic cablc. . . ��•hcrc i
Proposal sca(eback imm I(x)rhann�l;�lurin��an�arli�r Ekn�tration ratc:cxccc c�i 60 or 65 �
:1� �h�same time. �uni�roi pani�; n�und��I(ranrhisin�_u�79 rh:inn�l. �xr��nt. In s�mc bids t at kind of
:�ill nc�sotia�in��a�_r��inen�s h• ve�ske�1 t�x1��. F��n ���i�h�ha�ch��i�_�. h������cr p�r��ma�,e���as ez�ra�i lated to�hc ne��
t��s�:�lc h:�rk th�ir initial prc���,�Is. In th�latrst RFP elicitc�l onl���m�hid. inctr��poli[an buil�ts. f r�_�uing thc fact
D�tr<�ii Bar�lcn Cahlc�i>i��n r yu�,t�d ��h:�t�r�thc I.�ctors that I��l t<�(hc that in major m�tru ar as. . . thcre arc�
ih:u th�s�.ccm h�cui h:�ck t�, i�in��lc- �h�n��r�1�irruni.tan��s ti>r urh:in c:�blc I�x ��f��le�•i�i�n statiu s thc}•could
irunk. ��ll \1Hc���,cr.�ti�,n fn m th� ����r.u��r:'' �1'h:it mac1�thcin.0 hulli:h alre:ul� >c� in thcsc nr rkcts,therc�rc:i
Ju:i! r:ihli •�•t�'ni��n��inall� ru�x,.<<i ,�n urh:in�:ihl� in th� tir:t F�I:u�' \1'h:it lut��f inc��i�lh�at�r.a id��xMti��•Cnl>. :i
\nJ in 11�:�.hin�y��n. I) (� . I i•iri�t �,1..ihl�i��ni��:ini�,tu��n�����•i I��t��I ��tli�r thin��z��,�1 � S�� it ��:i:::
�IiI�I�fi�lt �':��11i !
(�.ihli�•i�i,�n I;�� :��i.:,1 �,,�1.1 n � inil�iU��u.�1u:il �;ihl� ��•t�in.��II�r�n_ .; . �
.�.'ti�.ni��n ,,t it� �n.l��;�!;,�n:il t�t����rl. .�n ! I ::n�'t� „I inh;�nir�i .�rci�i�. I„�� ra;�. 1 \n��thir I;�cf��r�',,n rthului,_ I�,lh� ,
I �
.h,�r,I:ill h�i��r�n�•� �•.i.:u��i,.:in,1
.i:��n,!..�hi:..��.'. I,�.t:: h.��� �n !in:in.i.:� •.n,; .:Itnn��. tini�ii.:tl .ir�,.� I .
! ;1„� � r::�lit� i.1li:ii r�.i;r. �� �n��.�nii. hu.:n.,. ,
�:i��,���it I��� �,u!�':� .i.,��� i �;nr.iiiin.•:u� :in.1 ��h� :�r� � ,
�� i hail. ' I ��I:�,i• ril�i�l��n ri��n �� I���ni ��:�� ��cr
C�I�i�.i�����i;� ��Ili:i:�i. li.�. 1��iin.! Ih� ,.i�n�. h in•� .�.il��
.itua�i��n .��J�n:unii th.it (r:ii�hu�� ci��� ;�n�l�ith�r:�n�illu� •ir�i��� :\�. i
����i.lu�l�.l I:ut �rar I��r I��ur �rr:�•�,(th� I�ri•.n;�n�.���luin. il tl :rt h:i.n�1 tiirn��1�,u; �
i it� h:n�' Ic.. Ia���r,ihl� t�•n� . G�r Ihi Overoptirnism i�i tk nw�h u(:i hu,ii�s. ���. C�n>>i>>����•
Ir:�n�hi.�r�than:i �x�����,.«1 tr:in.'hi.� l3ill I;r�.n:in. :i �ri�r:in�,I n�:ui� urh:ui \1'�,�n1�' \\'�I�h.�lir� t��r��1 \til��auk�'i'•
a__r��nicnl I�,r :\ri:�Oni�ha ��.i• ;r.�n�hi.� h:iiili>. .:i�•��n��,I Ih�t,i�,_�.i OIli�<<�I l�l�i�,nini ini�;iuun.
I li�r:
,uhinill��11��thc C�it� C��un�il I:n� ;�i��hliin.h:i.I�Ciii Ih����x�r �krl�,rin.ui�: ��:n:i Ii n�l�nc� t��;� I �:�u;�ltt u4� in .��nn
iuuiuh �I�hr I:it�.l ��n����,.�J�crrrincnl ��I �nulti�i;�� in urh:in ni;irl.�t.iuni��arcJ Ihin�>. . (wch :i`:i li��n�cl h:�nkui;,
i:ill. I�u:t .il���l� i:�hl�. 1S( �1f�/ .�.1 ni ��ilh i��n1��;uui.�i��A•it:iti��n. "l��u :tntl shU����iiiC. ��tlh, ul ;i fi:�l il�,.�
r.ilhi r ih:in:i�1u.�1 i:�hl�. 11 1 \llli .:n� ��r���i�'ii��n. in.��ui� in:ir4.�i.��I 1���� r�:in�ut:iU�m�,I I����� Ih�i:ihl�u�k'r:�1�,�
���k'r:ui��n. ��itl�.i .i��.�i.�li i i.1�1uu��n:ii .in,1 .� li.ill ��i Ihr:i ��.i� unil� ���i h:�.i�. ��:i. r�lcin,���n�.•ii: in Iliin��, I��;
nil����rl. �n�1� �! .ui'h:i I�ay �n�,�i• lii �i.:�ll. Il���ci�i�. "h� anil I:u�_i. tn ri�inui• \\'i I��un l,,ul ;i� II�.' \\.irnit
30 CableVisionlJanuary 14, 1985
, � �S��
ri�i�s arc res�xmsibic fur dcma idint
Pic�ured�rom Ie�L: Warnc Amex C mmunications Inc. �������„rl�is�ir:��cd sys�cmc,k icl�•
Presidenl anct CEO Drew ewis, T (e-Communicalions Inc. �,clicv�s thc�c's plcnry c,f blan •a,;.��,
Senior Vice Presidci�l Joh Sic an TC!PresidenL and CEO ;,�„i„���. ••�Vh;�t h.�r�knrd w:i..�,n;,j;,
John Malone. When Warn r Ar►iex assed[lie bal!to TCI in �i�i��i�;�����;���;�«�,"I�<<�(��;����.
Pi(Lsburgh, the IaUer ina e some p[imis�ic subscriber• ••���-�rvh�xh�crr��—ilic hank..�hr
esLimates o(u�/eich [3roLh r Richa Emenecker, inv�sin�rm I,;�nkcr..�hc rum� �nic..�I,�
superinLendent o�[he cit 's Cable ureau, is some�vhat ritic.—�hcy;,II iiiisjud�rd thr run.um�,.
skeptiCaL misjudgcd thc dcpd�cif pru�r�iiminL.
and c�f coursc thc VCR phcnc ncncin ,
( " wasn't rcally hcrc�hcn. . . . �vcryb�xly
:-.y.
. �� wcnt to thc p�ny togcthcr.T crc was �
�' h�rdly anycmc cryin�in thc ildcrness
wying,'Don't do this,'cxcc t for thusc ;
:;�.` (companics)that didn't gc►r nning:d�tcr
� Lt-f .
:' thosc bi�city franchiscs.'
;.� :
� Rcidy dcscrib�:s thc franc ik pr�x�s, �
, . ""' that occurrcd in many urhan markcts in ;
� -=` this way: "In thc anxicry of hc variou, ;
' `� '� MSOs to win franchiscs,th offcring �
�r . •�,:y� -� pro�sals madc to citics bc mc ;
"�� �' \: � unrcalistic. But once�hc cit cs saw thc i
. cable companies were falli g all over
• � cach othcr to`gct thc franch sc,thcir '
� ` � � . RFPs set mimmum st:sndar s which
• ' % � were really not cconomical y feesible
unless everything workcd ut on the
�S most,ntost favorable basis and that ,
would havc meant ihat con•truction
�` �-ould have bccn complcte on time.
th:�t intcrest ratcs would h•vc remaincd
� ,� , ;, stable and low,that thc a�� ragc �
pcnciration ratc would ha c push�� inu�
prci�xizal thai 31 to 32 perrcnt uf hc �tratc��y bv comp.uiics cngagc�in fraud. thc middlc SOs within thrc c�r fiiur
rcvcnuc>����rc u�<<mi� I�rum anr Il:�n' � but rathcr thc result�if pressurc to��in )'���rs. [hat thc a��era_c su ;rritkr���,ul�l
bc taking onc-anJ-a-half t�t�.0�:i�
itcros that simplv ncvcr�cvclo cl." thc Iranrhisr.. ���hi�h cn�cwra�_c� �crvirc�and th.rt thcrc nti ht�Ircacl� hc
cumpani�s tu u.c ovcrly��ptimisti� ,c����� � r-�'icw lrickl�n�_in.
prujccticmti. P y � �
(lnrealistic ex ectati rtS "First, vinually nonc fchcsc
P Pituhur�h'ti Emcncrkcr h:is a Jittcrcnt .�•titcros��o�constructcd a i����hcrc n�ar
U:��iJ f��m�. �i«rrr,i�l�nt u C 1�1(� �i���. Cuinincntin��cm Ih���ri�_inal ,���th�r��nstructicui��hccl il�pru�c,s�J.
;\�s�k'ialcs.:���ruup ih:n h:��Jun :���plic:�nts I��ir thal�it�';>��tci�t. hc.,n.- ��•f�ich pr�cludc�Ihcnt fn m r��ll�i(in��
�•�,n;ul�in� Iur�•i�i�>. tkli���c.�h.��h� '�) �hink th�� �_cnuin�lr txtli��c�1 in �rh:�t rc�•cnuc�and dramatirall ' inrr�a>��th�
in�lusu���ni:i�c it._rcatc.t�rr��rs in th�r>uhntittr�l ancl thal��ha[th�� c<is[s. particularly cro s fi anrin��ha.i..
�rujcrtin_�nn:tru�ti�m�ust�. " n pan it suhiniu�d����uld lk a �iahl�hu�in��ti an�f Th�cu,t.went up and th•ccim[ru�tiun
��•a.(Lirk citl cx�x'ricnrc in urha i arhic�•ahl�. I cl�m'�tklicvc li�r a nxmicnt `�i�t dclaycd. So alrcad��t crc e�k:s the
markct�.�� Kcmc�x�lain>. "Bu in�an i� thrr���•as am•suhicrlu��c cm their�ar1 t�� �c:imomic�of lhc initi�l id.'�hc.a�•:. ;
ects tci ihc fa�t(ha� in��rcicr tci���n:t h:iii ancl:a�itch�x tci pruntisc an)'thin�_, �
E3resnan sccs�hc situa ion in a similar
IIranrhi.c, v�w h:id lo tx�at thc th�n h:irk cuu ul�it latcr. � G�!ht and callti all panici ant,in th�
c�miEkti�iun.:lncl in circl�r�ci tk: thc "(Piu>hur��h)�vas thc �in�maj��r rit� pnkc., "co-conspiratu .." "Thiti mc.. �
c�mi�x�iti�m. p��u haJ w ullrr il •tkll, in th� L'nit�� Stat�>���hrrc th� �ranihi�r that �����rc in.��h�says. 'u�ati th� r�;ult �
;in�l��•hi:ilcs th:�t ����ul� niak�� wr ��:�,.���:�ril�ci (�ir:i clual-��irr s�•st�it�:�nJ. ��(an a��lul Icit ci(�x<�pl� ���urkin�_ h:incl ,
i��in�r,�ii� I�xik nu�r�':ittr:iiti�r. n��r�lrr inur�th:in th:u. (ur a cJu;il ��irc. ���u-��:n in h:in�i. l�hr c�msuUant. . �ir:t��I :ill, i
1���I��(h:il i��:��hi �uU ���WI�I lUi�_i���� ���lif:��lit'�O�JI;f:>�>li�l�. O�!�;f:��i:l��l ��C�C lh��n1C���h�,���,u i1 h�lr�lr.�tt �h� �
rr�inur.. ��uttin,_ ih�,.�„n Ih� I i;_h .i.l�. in(���linnhu.:in�ihi I��hn��l��,_� ��:i. hiJ ,�kiitii:�ti��n., :ut�1 in ��li�•n ili;�
:in.l ���u h;nl n�lii�1_i in i�rni.� I ��r���.•n. I.ni�n�cl.�r����l;iin. . l�ut n
��uul�l r�yuir�Ju:il �:ih1•. tur
,��n.Iru.Ii�,n i��.t._ ��utlui� lli�� •��n Ili� ��.0 n��l Ju:il-��iri tn(���lunihu.. •�� ���u
��ain��l� ti�� ii�.li: nl (��r th�
<<,n.ult:int.i�,��:�.h th� r lian�l.��� �
I���� .ul.•. uhi�h all����:�1 ���u��� ��:����r i�� ���In�in:i .+t1 �li:�n��il Ol l�l:.�.liin in �n�ul���n�ni. I think (h•� �����r:�i��1 in
iri.ifi lin:�itii:il ��r��j�ilt�,�l.11�:i ju.liliiil (�i�lu�tihu.l��:i(.J ih:����lil .�.Ii�tl �ch:�l lhC� titt�U�!ht ��;t. '���xl I:iilh. huI
ih�'.�aini:inil I�'�il ��(.�•n iri ���u ��irr ���hi•r�I���u I�:i���Ihi Iranihi.� (��r th� Ih�� I.inJ i�f�n���ur:���� ►th�iitiC. in
�x���H�.in_—:�nJ h�,�klull�� ���u ��uul�l ��hulc iit��.:iiiJ ���u .�I ��wr.�l(lh� ����:�I .:i�in�. 'G�t ��h:u v��u :ui an�i ��r1 it .
��in ih�iuin�,�lili��n. ��I huil�lim_Itli� .c.liin) in IhrC� ��:ir.. ������ •
- • ..
_!'�,�h:�hl�. ;�I lia.l in.���u� a��.. Ih. I�h�• uucinal ��r�.wrc�ra>Ircnirn�l��u.. '�Ol r��un�thc r��iii�ai�i�>:�rr:�t I:�ull
i��k'i1:�1i��n(��;�.1 tli:il ��ui� ���,i ��in II�: :u���CII.�� hC i��niCtl�� "hut t4•:ir in
Ir:inil�i.r:in�l rlinun:iti i�mi�s iw�n I��� ininJ t}tat it ��a.a runi k'tili�'�
ih;ii Ir.inihi.c. ���u L�lii n�,•��I ii� WrIJ's to b(ame niark��(�L•�i�. . . . �I�h�� ���r�an�i��u.���
.��n�ilhin_' �'nu ri:ill� hili�'���' i in��ri �1 hili iil� ��Iliii:il. lin�l u r:n�'t�� ��Cl (ranchi�C��rhiih � �r� nrrr�•:in I�u
ri:�li.l�� ` lii:ul�l. 1���rli'hi li•�i.Il�.i; hl:inti:.il�l.•.'�,tn��.ntii� I��r Ihi �ni••Ih�� Ih��r 1�11�in�s.i.ti�_f� �. :Ukl Ihi�
�hi. ��:i, n��� n.•�i•...uil� .i���n .i��u, lin�l �h:ni.�l��•. in.�n.!�����r,i���r. .:i� �h�• ri•.�i��nil�•�I I��Ih���� IZI I'. in,_�,���1 I:u�li
32 CablcVisio��lanuary 14, 1985
. ��-���
�krhap.wilh suni�n�iv���, hu�
nun�Ih�i�xs�tx�tl I:�ilh—anJ nliir�il
IhinLS thCy th�u�Lhl wcrC(xts�ihl�:int
Ih�t'ili��Ihctu�hl w�r��x�ssihl�. l�h�
h:inkrrs. �h�lin:mii:il:�n:�l��t�. Ilii•
I �hiiil.-�:ink�r�,�hr��K'i;il cn��in«r.. II�• _
i��nwll:uus anJ rit�-st:�ll.all �huu�ht
thcsc Ihin�s wcrr d��ahlr." liresnan -
wys. `'�.. '
4.� '
r'
Q�ih Smith. (3altinwrc's dirc��ur i r;. �-.4;
tciccummunica�iuns.disagrccx with -E:
thosc�vho hlamc thc citics ti>r rcyui ng S p
syst�m.�h:�t arc nut proving tci bc
ccon<�mirally viahlc.Say�hc: "!'vc � ,; •. Q�
�1C�flJ JII awlul IcN from thc industry
abcwt huw murh ritics wcrc ovcrzc• ous � � e
in thcir rcyuircmcn�s. I'vc hccn inv IvcJ ��
in thi,Irum thc ciry sidc for thc last 10 �
or I I ycan,and I think that�hc ind •try ���� e- e /�
prop��cals wcre sienilicantly ahcad f f. „ , . •
city rcyuircmcnts fur a numhcr ul y arx. /$� a V
"l think thc citics stwrc ii� thc bl• �c,
but thc citics w-crc not in•r�isition . a ,d
rcquirc all of thcu tut:illy on thcir u� n,"
Smith contcnds. @
Milwaukcc's Wcich thinks som� �f '!'
thc problcmx�tcm frc�m thc fart tha
many muniripaliticz kx►kcd t��cabl � • C' s8o, a
primaril�-as a way u�raisc m�mc�•. cit as '
a communiration�mcdium. "In m
opinion, I think th��chulc thin��yu' c situations is what��as most ii iportant all
along—a basic cablc s}�stcm •ith�_cxxi
nawrally—thruuih nu�m�'. t:wlt– capaciry.gcxxl en�inccrin��, cxxl
startcd oft on th����r�m�_�ixit ���hcn �
fundamental dcsign and g�x flcxibility
rcvcnucs I'rom rahlc i�l���i>i�m.��.t•ms in�hat desi�n that���ill allciw II th�
����r�.�en a.s��meihims�c���tt:�ct th• � f��,��, •We think we sec a problem doti�n sen•ices thaf are cl�ar►v pm� •n tci bc
rruEnm t;i.e<�r>�,m�ihin�th;,i�uu J tx� hc line and herc are thc steps you should 'profi[able uxla}•to hc offer� ."
�L�«� in�hc�.:cn�r:ll lfl:l�Uf\ ;1flt� '1111ICI
hcl�s�mie c�j ihcse helea��ucre� �����s compsny to correct that'or
c��iiiinuni�ic.ha�•im�thc kinds��f ��«�n�back and saying, 'It's your Still bulfish
��rnhl�ni.i i�i�.nunn:ill� h:i�� ��ii rrsrc�n.ibilicv. �•t�kc a busincss
�UII`�Illl'f1I —IIIJI ti lll�8 roach �vc toc�k. hc�rt�:a)�.hc r�niain.u�i inu.ur
a��in_� inlr.ntruitur�.:ui� th� ��hul PP
arr�� u(.u�ial ��•�II.1��I��U��. �t�.UI11� �,���I(�(1 (`'O[O W:Iff1Cf:ffl(j ti���. �b�u[chc urhan rahlc rm•in nmcnt.
I/1l"JI ll(Ill I:II\in:inaU an�hie i iti :it ���'c think your QUBE failure ratc is tcx� ��� "� ������I al�m�� �hat if th r.�blr
:ccnicJ like a rc�•�nuc s�wr«at a inir hi��h'or'�Vc think your bad dcbt is roo industry•a>���holc and ind� •iJu:il
���h�n thusc thin_�:��crc fc�� an� f� r hi�_h'cir'Thcrc's mismanagemcnt.' ��mpsnics cannot succccd i urhan
����'����.�� Govcrnmcnt's not resperosiblc for markcts and if th�y losc out tu
1V�lih cl�k:n'i pani�ularl� L•iul makin�thosc busincss dccisions and f ��mpc:tin��tcchnolo��ie�, it i11 tx�th�ir
�V�rn�r Anic.� tiir Ih��i�uaticm th cit�� dan�t think we xhould interfere in that. fault and not the fault of th tcchn��lcr��
fiiun� it.�lt in I.�si vc;�r. "I cJun�t t ink Suhscribers u�erc bcino scrved; thc rates or thc m�rkct. The markct s still thcrc.
:inv��(ihe hiJJ�n r��ulcJ r<maruri axi�v N-crc rc�sonablc," hc contcnds. ConsumerdcmancJ i�still t crc. . . . It�.
��r:, �c:ir;,�_u thr.��:t�ni pniFx,.r in ..pur sub,critx:rs havcn't skipprcl a morc� (un�tion of thc in�u tn Ic�rnin��
lyr I.'� Hu����•�r. h�a�J;: '��l�h� (:iit hc:u. Thcr��.hcrn continuity<�f scn•irr h��•tu m�rkct tc,thc>li_�ht � dilt�rcnl
th:it 11':�rn�r tkt��«n ly7i:�i�,� I� '� 1V��.��xr(a lit(Ic disrupticin(thi� �•�c�rl �nvirunni�nt in�hc urhan a �a.in�:il.��
����n n�„rr urhan:irr:i,ih:in an� u i�r �.h�n thcrc'.:i chan`�e in r��nrcncr.. hu� I�:�rnin,� u,ni��r��Itiii�ntl u�xr;�ic th�
r:ihl�i�mi��:�ii� in Ih�iuuiitr� an� I��un�l ;lill Ih�>rr�irc.hi�ulcJ continuc tu hr lhr hu,in�,.." h�i�,ni�n�l.
ihiin.rl��. ��iIh C;l(xl inilli��n in<<hi :�I hi,�h yu:�lih th:�t �t';irnrr.��Jurin,� lit.i �l��li:�ni Fini�rr:�n. :h:�iin�:�n�,(�h��
11��in�l��( I'1\'iri:�li�1:i J�IIi�;�l
.iitr.iii��n I��r ili�n�
��:ir,h�r�. It�:un(��rtun:uC lhal it \'��c l��rk St:u�C�miini., ��n��n(�:ihl�
h:i�i���ncii h�•i:iu>r it�, likc chan��in_ I cl��i,i�m. :�I.��u (:nrl� h illi>h un hi;�
��it'h'rtxl,Itrh�rc,inLrtulll�ti'�cd`ancJ`yi uthuEk• urban cablc�xr:� i.l:i Ir.. :�itrarfti��r
Pittsburgh's approac - -
I'i�i.hur`_h�. Ein�n�ikrr Ihin�. I�s�al �i�u�cm�l liisc anything. S��ft�r. w'r in�•cstmcnl<�r h:����in�in :h�J pn�iiii.c
,_u��rnniciil ��Ln•�ii� �xn�k•r n�l� iii th� �I�m�t Ihink u•�ha��C .. r�lati��Ill:l �'l'Jf:IC��.�'XC'(lI insular�,
i:ihl�>itu:ili��n in th:i1�'iI�. Hi C.fIC�s K��RC:i,rcr;th:tl�il)'cabl� (h� inilu�tr�• il.�ll i,��ruE rl�' ni:�rk����l.
�ninni�ni.: "I h:i�l iluuht.. hui ih•rr . ,)�.trnts hav�n�t Icist mu�'h hccaux'u� Thc rhancinL (x�rrr��iiun huul�l nut
rnahiii, �hr i„��rnin�ni c:ui�I��a ,ut fr.�n�hi�c s��lch�rks. "1�h�conrrs.i��m havc tk�n unr��xc�cJ.
Iha1 Ik�:iu,���r i�:il�inl�r��ri.�h: .� rr,�llv ar� nut th.�t�rcat or prinwril�' Ad�1s 1 himia.Jani�.. � ir�il��r��I
ri_h� 1�+f:iiL A�:i _u��rnin�t�. �n�-�ilv��h�i.r�hinL��h:it w�rCnl ask��1 I);�Il:n'C�mwni�r S�r�i�•� I)�•�ti��ni�n�
��I��n ��,u'r�•;;nui_ :iyu:uiirn,ii ��ti�l�. h� lh:�tniuniiir:�lil)' inth� lirnt �larc.�� "Iaini�m�incr�llh�•iit� i�ll):ilLi. i.:i I
���u�r��i��rn I��•i��irn ��:uuui_ i�� :n iu hr r��l:�in�. "1\�h:rt�s ICI�I in nu»t �iahlr i;,hlr ni:irkrt ■
CableVisionllanuary 14, 1985 33
. s��'
. ��
---�� ---- __.�__:. -
iS A T E L L I T E S
I . S!� ELL TE NETVC%O(�I<S:
TH GREAT PROGRAMMING SHAKEOUT
I �
� �
�
�
ard rea�ities broke in o the promise caWe in 1983.
and about the onl c sey-based talk channel,and others.
Y pany to em rge unscathed W�th advertisers sbw to jump on ppard.many basrc ser-
was,as usuat,Time In .'s HBO.The t chnology,alie� v�ces have turned to a second source ol suDOort: E�gM ol
i--_an,nas always been e gantly simpi .Programm�ng the too ten basic services charge�he cable ooerocor a tee
�s seni�o a commun�caaons atelliie.�n tur beamed down varying Irom 5 to 15 cents Der subsu�ber a year.Even some
i io an earin siauon, usually d�sh•shaped ece�ver te�or ol�he lastest-growing channels. such as Warner Ame■'s
�++ore leet w�de.then reiaye to the"head d."where it is M^J, which pioneered rock video, a�d ESPN, tne �nree-
I sent out to homes by Coazial able. yzar-�Id all-s
i The econom�cs used to simple.too and still are,in �«s channel,have found it necessary�o�m-
I �ne case o�,say.HBO.More han t Z.5 milli Pose such lees on their cable operators.(Warner AmeK a�so
� to St 0 a month to watch r e�t lilms and or g na1 taae on ch Idren's channet Nickelodeon,Ihis lal�.����ritmg On rts
I H90.atl carried without aC nising and p fitable enough The one hope lor the beleaguered bas�c services has been
to make T�me"s Video Group he single larg ��ontnbuior to �he qradual entry o(caWe channels over�he last two years
�he company's revenues an profits. �mo the elite inner cir�le that can show numpers to �ne
� Sui lor�ne resi ol the cabl services,the conom�cs have adver�isers—lhose services now in �ne Nielsen survey '
� bcen como��ca�ed mdeed.T e satellite nec orks in this sur- WT85,CNN,CBN.ESPN,MN,and USA Network carelully �
veyareofferedtothecable bsCriberfOra 'b05�C"monlhly DaCkagC lheir mOnthly and pu2rlerly repOrlS lo p�t t�c�r
�ee ol anywhere I�om S2 o 512. They �e meam io be sometimes minusCUle�umbers in the best lignt,and con•
suppor�ed. in large Dart, b advertising. ut the giowing vince agencies and sponsors to adven�se on cable.But e�en
prom�se o1 ad-suDDOr�ed ca le has q�ven w y to a reali:auon when armed with these reports,those selling�able are Irus•
that.fo�tne momem at leas,there is no s ch animal.While traced by what Nielsen admits is an under-measuremen�of
�etwork N amassed almo t 56 bill�on in dvertis�ng reve- cable viewing.The company has been moving to increase !
i nve m i 982.only 520a mill n in adver�is� g sales wem to the number pI homes in the surveV<<om 1,2pp to as many as I
cable channe�s—and Iwo-t irds of that am unt went to Ted 1,OOp by year's end,in an ellort to imOrove cable represen• I
Turner's Atlanta UHF supe cation.WTgS and his 2a-hour tacion.To be included in the survey,a cable chan�el has�o
�ews cnannels. Cable Ne s Network a CNN Headline have enough pptencial subscribers to eQual 15 percem ol
Ne�work.Even assuming n arly 50 perce t g�ovnh i��able the 83.3 homes Nielsen estimates as having telev�s�on.or I
I adven�s�ng by 198a, �o S �5 milGon, as does a swdy by rou9hly 1a million subscri�rs. IThe term subscr�bers. n
Doy�e Oane Bernbach, th amount w�ll ��II eQual only 2 must be remembered,relers to Ihe DeoD�e w��h the opr�on j
cer�eni o1 the wtai outlay I r N.
of wacching a serv�ce.not those in laci wa�cn�ng��. Sub-
4d�er��sers have stayed way(rom tne cable serv��es m scnDers to basic cable pay lo�all the channels in a bas�c i�e�.
I dro�es—pnmaniy,�ney sa ,because th �hannels cannot whe�her�hey watch them or not,� i
Drov�de tne accuraie aud� ce measure ent that the ne�- Another dlusion to bite the dust in the las�several montns
Worps tlo.Tne res�1�,cou Ied with a pro nged recession, was ihe idea that cable would serve the narrow aud�ences �
has been dubbe0�he"ca e shakeout" by the same me- that networks wouldn't or couldn't.ihe unceremon�ous de•
d�a analys�s who pred�c�ed osy lu�ures fo the satelli�e serv- mise of CB$Cable,a critically acclaimed cul�u�al bas�c ser•
Kes a�ew years ago.Onl 15 or so ol th current croo can vice,and a
e■rs�on the advertising a ilable,they s y.The number pf �Y cufwral serv�ce,The Entertainmem�hannei
�ew servKes on the dial has dropped ramatically_.pne drew1naccusatio s'tha cab e was de'pendentton he same
uade repor�er called tn�s D���g's G�ou W starwp ol the large aud�ence as the networks. Many have noced. how- I
Nasnv�lie Ne�work°�he la t ol the old•ti e lavnches."And
several o�anned launches never occurr ever, that the network parents themselves seemed less ;
Saceilite News than committed.if not outright ambivalent,toward tneir�a• '
Cnannel 2.a compan�on rvice to SNC UN.a New Jer• bie p�ogeny.
I
"Ad-supported eble prog amming is a very apeculetive,entrepreneurial business. I
We we�e alI too opt(mfstic."
i
./ohn RNOy,O�e.e�Bwnnam(ampP.. !
J
Ck'�r•'`�lS 1S Fi��DGuiD"c 85
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� TeieFrance.another culturallyorien�serv�ce dis ibuted tling the inroads of re �onal s
by a qro�o of french prpducers,was ropped b th Saiel• 9 Po«s networks and ihe swiltly
1' escalating costs of rights,ESPN,WT85.and USA Netwwk
Gte P�oyram Network this fall.ieleF nce provide a lucid �pn�inued to draw a ma or
� e■amole of cable eco�om��s:It cost 3.5 m�n�on a ear but � Po���on of thelr aud�ence for
1 broughl m only 5500.000 in advertisi P��R+e-Ume sports,panicularly baseball.
; ' Meanwhite.�he one commer�ial necwork that has stayed
� Narrawcastir,q,however,as War r Amex Sate lite En- �q�m;����o cable.ABC,is doing so only at some cost Io its
�erta�nment v�ce president Robert Pi man has poin ed out, �ylance sheet.ABC Video Enterprises IAVE)lost S25 million
� doesn't mean apoeafng to a smat�a �ence.It me s find- M 19g3 alone.and loss projections lor 198a are at S50 mil-
��g a na�r�,v1y Io�used lorm ol progr ming that a als to lian.PreSiCent Herbert Granath told analysts last spring that
a w�de aud�ence.The hignly succes ul MTV prove that in
ceriam mstances this is something able can�, n MN. ����m��y Was behind schedule by as much as a year.
• cable h�;�s lirst original contributi to the lar er e tertain- Sa�etlite News Channel,a pint vencure with Group W,Wed
�++ent sce�e� It used the song-teng h video clips hat Ihe 1 natN sob Io 7umer'snr v I CNNSn p��o���t983.andwas
reco�d comDan�es had been suppi ng to rock�I bs and To try and stem the hemorrhage eaused by its myriad
�e�a�lers.prpy�amming them on a 2d ur channel c mplele ventures.AVE has been busy with a numDer ol mergers:
w�en VJ's,contests.rock news,and oncerts.The esult is Oaytime,a joint venture of AVE and Hearst,the publishing
�ery muU hke a rad�o sta�ion.This ummer,NBC aid the group,merg�w;th Viacom's 24-hour service.Cable Health
u�i�mace compliment and put a vi�ep hp„von;ts lat •Fnday Network,early in the summer ol 1983 to lorm HearsvAVE/
��gh����euo.WTBS.HBO.Cfnemax, howtime.Bla k Encer• Ywcom Entertainment Services.As o1 tne autumn,exactly
ta�nment Tetevision,and USA Net rk have all p1a ed rock what this new service would look like was still a puestion,
v�deos m D�om�nent sb[s in their reg lar schedules.Ca,mry but ic did have a new name:liletime.AVE also negotiated
M�s�c Televiswn,o�e ol the season lew new ent ies.had with the BBC,ta programming and lorriqhts to material7he
a poie�ua12.1 million su05cribers at 'rth,MN atso boos�ed E��ertainment Channel didn't use. resulting in a second
�he I+ome vi�ep market,whose obs ers predKte the sale ne.�channel,Arts b Entertainment,whi�h may be the only
or mus�c sol�ware would eventuall be second on to that culwral service to survive the current doldrums. And
o�mov�es. Gnnath has suggested that other new par�nerings may be
i�answer to�he inueased tom ticion,Warn r Amez on the way.
��s�sts tnat MN is not a"show"in t e traditional s nse.but One poteniial chauenge to basic cable that loomed on�he
has promot�onal vaive because it pr sents songs i continu. horizon in 1983 turned out�o be fairly�nnocueus.When the
ous rotauon. The company contin s to receive rogram- CoDYright Royalty Tribunal decided to increase the lees im•
m,ng free Irom the record com nies while C pays posed on cable systems'carriage ol"disiant sg�als"—i.e.,
5 i.000 a c��D•MN was crediled in 982 and'83 �th reviv the signals of superstations VVTBS IAtlamal. WGN IChi-
��g ihe record�ndustry,and rad�o pr rammers vie ed wi�h cagol,and WOR(New York Ci[y1—cable operaco�s and own-
alarm a new muSiC medium frOm hich,alier ye rs of su- ers.Ted Turner among them,were up in arms.The�ndusiry
oremacv�n cne I�eld.chey were in e lect barred. dubbed Marcn 15, ihe day the lee in�reases we�e to be
� Soorts on bas�c cable,bng a sia e attrac�ion of�he lead- imposed."81xk Tuesday."As it turned out.however,most
��y serv�Ces.was conlronted with the rumbling ol what systems dropped nearby stations whose signals they'd
�*+ay De as most s�gn�IKant foe: ne Day regio I sDa�es been imporung,ar Ipund lhat their supersiaGon contracis
netwOrk.A�r055 the Country, 12a OwnerS 2nd ntrepre- didn't lall under ihe decree.Thus.the move d�d not de0rive
�?urs nave Deen Dutting ipyeiher pa�kages of ines for many viewers ol the old movies and sports that are �he
�� ���eg�ons.�o be sold by subscr ption to bcal ns.Last superseat�ons's�aD�es.Some have suggested�na�the rul�ng
so��ng.G�oup W annovnced ic w Id provide w paround even did cable a service,making room lor cnanneis such as
mate��al�o�six such neeworks�n mething il� led"The Cable Heal(h Nelwork and the Nashville Necwork.
Soor�s Ne�work."set ro launch m pr;l 1ggC. What IoUOws is a breakdown of�he array ol bas�ccab�e
On�ne pr�gh�s�de.caole Drove �he corners� ne of an• channels.Look on�hem as survivors.Also bear�n m�nd that
o�ne�creae�on—a new footba�l le ue.The Urnt d States wble-prp9rammingcorporations,suchasWamerComm��•
Fooiban�eague.creaeed at least i part because mer��a's i��ia,s.ABC.Ame�ican Ezpress.Uacom, and Gro�p W. '
mosi�oo�lar spon seemed barre lorever�on t e proles- seem to go through more mating and break�ng up than a
s�ona�ievell trom ESPN,was a siro g draw�ng�ar Manday year's worth of soap opera plots. and �nai, even as we
a�d Saturaay on the cable servi e throughou[ ies debut speak,new parinerings are dancing in some cable ezecu-
so���g season. IThe Sunday gam s were show on ABC.) tive's dreams.(Noie:U�less otherw�se mdcaced.a�l cable
i�e games aveiaged a respectabl 3.3 rating.T ough bat- serv�ces are avadable around the clo�k.) JVVE TnlEti
"The basic thing th t adve�ti ers have been seeking for 100 years hasn't
suddenly changed wi cable. o crack into the big time of advertising dollars,
you need a big-numb r audien , because you're always competing with other
� media on a cost-per-t ousand b sis."
A/(dn�j0f1[S/11dn.ROfhSCMb(/n!G/OC/9 lpw�n �
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ut�v�ow vears wo, ine M1N1 ABLE SYSTEMS Ssien��e GWe nssoaauon.me (
SR•aN�rWusirv�as na0 asde qrovo br more�nan Ii0
��s snare o1 nard tnocts SMAN apera�ors and pr ram-
bu�nas stdl msnaqe0�p fory utbuildenro tindypviDO�CtAeirn�w�pertm�nt �
com ezs�with m� ur-�nunn� iytt�ms(MAN�fDa- ^1°rs. unme0uteiv ce�itrone0
9+�^^�emum Oanans wrv. �ne fCC�w a deUa�a�ory rutmg
nowever.ss�o Mw b�q d an ci�t irinp to insun ood Ul�vision r�pDtion lor dl Un- Ihal SU�es 1ud np au�horitv over
Eelerb ns�erntory�qamst tAa +nd.n 1979.wh�n t •fCC d�npoAt�C utdlit�roulvinp .
dish ,wmwn�hit ed�nMAN� �t�m to�uullit�n- . S��'W��ever the FCC dr �
��ev�uDk ooslsuqnt ol GDIe N. Y cdes.IM pnevsnces are wkeW
$MAN nas a b�garq la i�. uivi p dish,�nd wA t h�d M�n�naid�ndd commi�nc� to be urned over into t�era�
4nyQne un en�u�Ae busmess w�� +ndo�msd int •mini�Wn ubl��y�t�m known�• court and, -
Ieven Or�cast and caWa com• SM .tatdiiu m�ter•�nNnn�tdwlsion.Th���In�ul- � Dess�OM.rosolved Ov .
I+Uo �Dull down si �b from tM��tdtlt�s,tncludln �M ��e Supreme Court,
w��cs oinenvae rescr�meC by 0 In 1982,a Osllas$MANoOer-
FCC ownersn�p ru�esl.an0 Ue OW annal�.�nd pr vide tMm to t�n�nU p�ylnp monthly � a�a IW�s clave�war to e,. .
rewrn pn Mvestmen�Is swd�.in ��b� ripNon leu. scYed on priv�a proO��Y.SMAN
four�o s�■ moeins. a app.�mt N�t m�u��K�mpt rom dl fCC rul�t.Mor�Owr.il a�ya w^dt'rcu4�bnwhlte sall esap
um w�not I�y •�trou p�blit�Iw�U.h Is�zem � '^fl munK�p,l junsd�cibn. He
apartmenl tOmpler esn p�p��• � sppliad lo Uu FCC la s uWe m�•
hne0 w�tn�n ear�n suiwn.sm. Iro municipal np ation�nd/rom oblip�tions to p�y tM
d���ca�an epw ���N D��C�nb •o! evenuu.Th�dwdoDmsntofSMAN �����aftensawbeamsqnals
Dment. and wir. O be�w�e�bu�ld�nqs sewraied by
��q la sOwt 580.000..p�phN lab uU�d"priva� ubli 1 Ms b�oupAt�npubh to th� �aK srte�ies.Tne FCC qranted
one•cn,r0 me cos�-per.suD ubl iodu�try. si s i� thn�t�n� to �kim oH ubl�'� Ihe navest on Ihe Condition�ha�
scnp�r ot caofnq s a�v.O�ce a cho'a�t ruidenti�l re��Mlon m�ny citln�n wlr�d. he voluntariW submd ta fCC ca•
svs�em�s uo a�0 ru�mnq,�t can bN�ules.Th�s a new Oreed ol
+OC nrw tvsiomers cneaoM. �appsG luny sre �ne stwn's Wnea. Th� laqsliry of SMAN/ SMAN wss ban.one re9arOe0 �
MARKETPLACE: S�nce 27.500 arqe ho�e�s a 7,500 IsrWlorC �pMrxts, w�ich� �s a ude SYi�em py�ne FGC, �
t9)9.wnen ine F�C's Oerefluia• �oswta .Bv 1992.acc tl�rq to exc�v0e uWe compsnies Irom p�� �yhi�h non�t�eless e��des
i�on o�s��e��ae rece���ny O�snes a�e arkearesearch �epo�t, markeGnq tneir serv�ces to bo�W- bcal requ4�roo. �
OOe�2C u0 lne f��25 IO"0���71! $MA COUId b! Ih! D�imary ing puupinl5.i5 bQiRq tE5(!d in �Da! COTpdNlS an0 CrtieS
caOk." SMAN msiauaians oarn/ edium in 3.3 -Ilion ur• cOVrL�ai�May,th!lirit b�ow are no�the onlyo�es allected bv
nave crapp�d uo��Oalias.Ch�• ban uzeholds. reD� senGnq was s�rock whee s New Jersey SMAN's e■tratenliorul s�a�us.
caqo. New vort, vnoe��.. Ae- �an ol n�ne hookuos awen• superKK co�n judqe rvied,in a UHF snC pubhc N suGOns
�ania—w�e�e�er tn�re nas been mqs o1 Oor more un�ts case brouqM by a bcal uWe mght be shu� oue o1 SMAN
��uSlydUOn wit�CaD�di Sbw D�P REG 1AT10N;i�e sia ol comparry.lhat a�$MANopera- p�ildlrps because.un6ke cabie, i
g�ess �n SOm!mdrklti w�e�! SMA s nsinq s�sr a d�ec�ly ro- ta couy noe ppera�e w�ihovt a Ue sys�ems are no�reCwred Oy
irancn�ses na�e Deen qrante0 ia�ed� Ue�nduztry's pal lor- su�e caWe Dermrt.The National Ihe"musl Ca�ry"rule �o carry
oui w���n9 nas Dee�sbw.TC�. them, I
aT�, Co+. Warner Ame.. anC An atcemo�Oy�ne caDk�m
. o�her�00 CaO�e I�rm=��ve been Eustry lo urbumine$MAN bv �
brce0 m�0 Ue$MAN pusmeSS denyirp it wrN o�og�ammmq
��se�ldeiense.Tne best quess has spparenUy la�led:Two mspr i �
�s�na�SMAN subscr�Ders now SN supW�ers. amerlcan S�D ' �
�umoer be�ween SOp,ppp and scrip�ron Tek�smn and Oat im '
o^a�*�n�oo—»ieas��pe�ceni dvstnes,snrw�nced�hey would
����N��m�s- selt�o SMAN,and.winln a lew
Gene�a�W. me ouibot br years botn MOS and D85 snou�d !S !
$MAN �5 COnS�AereC D�yM. be major Drogiammmq suOD��- i �
larqe aoanmem como�e.es a�e ? � /� ers.B�t ine lawsu��s u+sa�ed oy = I
go��q vo�aster tnan smqlclam� this altem0����qe�on.In T�tson :
�N�ouses To Oate.SMqN Ms — - �„ sndCldcapo.�ufinqs are pena�nq ; �
�oi oee�atti�ut m tlwenmqs - I in�ompls�ntsliledpySMANop Z �
wnn iewe�snan 200 unns.8uc � . ar»ors,who charqe tnat S�ww• �
Int AdvE/1I O�a new qe�er�uon tune, The Mov�e Channel, an0 �
o� ��9^�DO�"e` K�•0a� coR'. ��S AN is S ruggling for legitimacy in ot�a�cable concerns conso��etl
mun.cauOns satelLtes wdl Orrve lo�estram traCe.il SMAN wms.
aown tne cos�01 eann suuons. 8n environn ent Wf1AI9 everyone IS . .
ae using it o unfair competition." �hen the o�e card missmfl Irom
Doos���;�SMAN orol��s an0 e.- ns deck.poDUlar prem�um P�O-
oanC��.q �is ma�tet 10 Smalld ,q���p.� Hp!! �smmi II
aoanmen� bu�iamgs ve� �o oe v �w+.GaLne 6 Co. G ^9.`^�� De a0ded.
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I P A T E L E V I 5 I O I
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I GOING,GOI G . . . THE NE1X/EST CHANNELS IN TO�,C/N
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A OIFFERENT KINO O N STATIO MOVIES—AND MORE—BY MICROWAVE
�
� SN�subsuiption td�vl�lon)ls t oldnt o/�M rn t�ch• MOS(mulUpoint disttibution�wk�)ofl�n tM tubsai0er
nolopi�s.Th�FCC Add h b�ck 1 r m�ny y�srs proatt many ol lh�a�m�Dropnms�s ubl�iY.witAOVt uainp a
� tommucid brosdusti�p.Tb� •rvk�pot poi q in the ubl�.In�U�d.�nov��-lM•�ir.omoiEiroctiondmiaowave
� mid-70s.wh�n tM iCC lindly t m�d h loos�i the mar. �ipnd�nnsmiu h dl: moviu. aport�. anmbled pro• .
k�tpbc�.ln�study�t th�tim�.th Sun(ord Rtu rcA Insti. pnms b�hom�vidwt�pinp.video p�ms�.compvler pro•
Ivt�p�dicl�0 STV would b��t bl�b�uu�s it ovtd pet Or�ms.�nd vid�oux.
In lint�nd mon�Hiei�ntly. MDS sipnd�tnvd �n wmp�ol 25 mil�s ie wery
� .STV is�imply�eh�nnd o( y tNwidon tr nsmlrt�d dirMion lo�Mdsl roohop�ot�no�s.whfch sn eQUipped
ov�r th��ir Dy toul N sutbm h�t Mv�cAOS n to oNu �th d�coders th+l conwR lM mluowwes Into td�vision
wb�c�p�ion tervk�ntMr th�n dwrtlf��•suD rted D�a �ipn�ls.Whil�MOS I��chup w�y to�md N proqnms to
i pnmminp.SN at�tiona,most (whkh m o tM UHf oHic�buildinp�,�p�rtm�nu,hotds,�nd homn wifhin its
b�nd.s�nd out�w�mbl�d pl n tMt�dwic �a�ch�d n�cA,it do��h�w��horttomieQ:Th�miuowsw sipnal
to tubserib�n'N t�t�un d� �.TM lut it simUu to un W disturbed by buildinps.tr��s.o�hiUa.In pnctice.
th�t on pay u01�.TM p�ul d v�nu Is lhal DW uWe MDS ls vlabl�only wM��m unbroken�in�o/�ip�t�Kist:
com��with dl lh�t b�sic uW� u to oH�a S h�s beeo b�tw�en th�s��dioQ�nd nuivinp�nt�en��. .
h��vily us�d br p�y-p�r-vi�w• mts.
i �
B sreN u+e ve��+90.MUS rKrs la tM rqn�s�o ine new
brpuis�ed at tha surtinq systems. wf+Kn wa De deie�•
�Ozcnptbn televisron, lo e drain" ps�e ol the prest tel�com- mined by fCC buery. Even
out�t m�bN.�s ro lonqer the The concl�sio seems to De ^"'"'�'�'O^s darby, u� pMne compsn�es we�e �ewe•
te4vlsbndef very metlqd �SN u�1� s msrte�wfKn �ae��aeak free Irom lh�p�ck sanied an+onq ine J0.000 p�o-
01 cnace.Tne sqtist�ts at 's tM onh 9+r^ e+town•saas• ol compeiirp techralop�es. poss�s svbmfied io �he FCC
tne e�d ol 198�sre prim indeed: �q +t ksst empor�idy �he Then, i�SeD�ember 1983, tM CBS�nd A8C bdd�a�ive a��es
From a n�q�ol 1.5 million sub onsumer dem nd lor unca�+ fCC made�dxis�on tAat sent each�nptGOincdenlally.thevery
sa�oe�s. a00.000 Mve been orod mw�es tn no sCvertis• MOS surpinp out of obsturity: cnies in wAich�ney own N su-
bs�, �n0 Mne suians shu� .Bu�even c �,the disco� Eqht chsnnels ol miuow�v�N lionsl.RCA look i bol0er Cowse.
Cow� Furthermpre,msjor SN ction ate 1 SN is Ap4 «��b°en reseive0 lor rwrr nskiip the wrs�n o�NBC slfiG-
I ca*�pa��es �sve posted �e�tv enabk doe eneer a marke�. D�olit,eEucstional puryoses Uo- nes by�pplywp la MOS�qnis �
bssez:SuOSCrip�an N�nd 0.s- SN disconnec �s csn run as struciana�Televis�on Fi:ad$s�• w+46 0l tM�op 50��tets.
sx�a�es Resources ISTAR� s�. h�ph as 90 pe cern. A s�r+qie- �e.or ITF5)an now be usad MARKETitACE:TAe f�rs�op-
ro�nce0 S12 milfpn �n bsses channel serv�ca nas a Mrd�ime («MDS proqrammmq.With IMt era�a lo a■plae waK o�0e�e��
an0 was sued bv some suod�e�s competiny wit �ne Eelphts ol a sirple slroke, the commissio� op�rp MOS as� Wogrammmq
wnen il coubn'1 pay its G��s. 35thsnnel(a re)caWe sys• ers translormed sn inspnilitsnt serv�ce was MKropand CorD.ol �
I Wnen 4wso�is lorced O�k Mr tem, puticu Ay when ��� delivery system into one o1 t1+e AmerKa.wh�cn bepm se�0��q
O�a�o slop showvy pornoqr�phV cMrpe is a 1 ��e same Iw �ttest lechnoloq�es uovnd. psY•N propr�ms�o Mtels and
■+Ptwe�u.s�d DsUas,tne com- both. RECUlAT10N:Inslesdolone apanmentb��d��qs��1975 Tne
� opsrationsl MDS channel in�sM companv is currentN tne 4ryest
I C+�V bit so marW wbstrips�s it ihe oMy sd ibn ina�m0us�ry ��k�t,soon thers wiq W two MOS oper�tw in t�e tountry.
Md to cbse down those svs• obsuversofle islorsevera�S7V ����Mnnel MDS urvKes. TneauOie�celromsmqk-fsm�
ums.ut�np�f 11!millqn bsa. �ceesees�n�n res to join lor�es �xn +W� �o o�l�r t�� s�me ily nomes beqso p�owmp wne� �
UM�ed Gde. wn�ch Nd pur. ard cresu t a thrntMM+d
1 I sports.moviez.snd nsws cn�n� tM pK� ol nwne �menr,as
I cnssed �n�ee SN sysums m�ems.Eve il Mis is trieC— Mls tMt uWe does.possibiy�t erooved. Subscr+een av +a
inown u tne Homt Encertairr and so Isr a sn't been—an�
I me�t Network,v+role them oll other compet�a boms on the O�KOS GWa Oplr�lqf wdi I C! Dro��ma�eh 5100�o S�SO la�ne
1w�S�3 m�GOn bss�nd put�M hori:on:085. able to beat.Rho MOS sUnup spacy� MDS rece�v�nq eeu�a
, su��ons uo�a saie. Tha SN bu iness mav be ter- �s�D�r subscriper is�Cout ons- ment. dus a ma+tnH lee lo�
Irduslry wtnoriUes who MO miruNy ip. tne tecnno�oqy IiIU tM�ol caWe systems.) ,each cnsnnel ol p�oflqmrt,mq �
Oee� smqh+q $N's Wa�ses h+ survives.5 W some�map�oa- Senshq sn opporWdty. U+evbW. �
� newskUers and Ine lrs0e Wess liv�ms�keli �nC prpqramminq �O��ste�s+nd uWe comWn� MpS co�W ca++Dete O��ea�v
� suadeMy sound very Oiller�n�. slnteq�es e abnp. SN bi viad willf IrWi1qM1 MD$G�- wrth GWe.bvl it i5 mor!LkeW�O
� S+rs one:"Our Nsw o�tne SN couW m+te� omeDact. _ _. —
� o�s��eu�s�n,��rs�ow�+ JuUETµEN •�Multichannel MDS is emerging as the
I ( most significant competitive threat to
"SN is bordering n comat se." cable."
� Psie Fiko.Men✓I(yncn n�a.t Knss.Tne ynree G�o�o
• C�"NNNELS �J FiEIDGUtpE'B�
r �
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J. ... �. �..���..�w........� .4..�:r.ri .�..1.�r'•.A'J.�4Y%��I:.:wr.�wdr�I'- _� _Y�+V.L4��.��.�..r.r�i�r�r r
P A Y E L E V 1 S 1 0 N � �� -
1
s��k om�r��s tM����f�iM w► � .�':
PAY PER VIE1X/: � �'��
,•M.e.su iu.m.aa.�a,:�ry � . ..
Ms na aen Mt'n•M MstA•to . 'r.'-.
`M"'�"`°'���°'.�°�""'" WH RE THERES A HYPE THERE'S A WAY �
aN uWe MSOs Mw�ppli�d la •
MOS wtms�s: TM t�CMqlpqy ' .�•``'.
couW qlyw Mem ol Mvinq to
w«. u�wo��ua. s«aa,: a
tAed Ir�n�lwse ueu.fpr tM to-
tuq.tM Oqq�st Owttion O�la� I
tM FCC is wM�her MOS shddd
rlmMn !COrl�mpn Gfti�t—p IlN muCA �nQ -"
�+aMr,�s�M«WustryNSN1 sa p;ah�xp��p;p�s,� OPENING NIGHTS AT NOME " + :��:
qw�.i sMu�d D�oons�GrW� mw t with � ';,s-
Om���urriu.tunMtirq witN tM dumsY n�m� fi P�y-p�nvl�w 1�sot�11M b�c�u��wbscr{b�n p�y fo�o�ly � -
otMr piv�t� ur��n sucA �s n+lly rrN�n�1iry' tM wwr �u prop��m�th�y tl�oos�to w�tch.Th�ma�ority of th� j -
OBS.SN,$MAN.anQ Gbl�. laOl 982.TNt sea uw tM p�oynm� m onattm�. �p�dd w�eu s�M out on � i
TECHNOIOGY: TM po�o �iri�wd�butso tM kinds ��mbl�d dpn�l,whkh th�vltw�h N pt mutt D�sbl� (
�Wa fa T�hitMen�l MOS a 7n ol w ts tMt uus�s ios and to d�cod�.Fw tl��vl�w�r plupp�d Into lwo-w�y.or Ints�u• +
$aN lak� City. wMn Skpqs book' p�nls W atr.film �{„�.u�l�qnUm�.lh�poc�dun b dmpl�and �uto-
Telecpmmun�uuons Senia� pam r��. majpr 1' hts. rock malk:N�un wd���propnm m�nly py p��hinp�but- '
ISTSI �wted�n etpe�W conc res.R�s�rved S sts Video �p�,Th�uW�eomp�n�/�computa wiU th�n k�n�mit m
eqnteNnnN MOS svst�en in Proo ctions IRSVP�. joint wM un�u�mbl�d slpnal to that wMerib�r�nd�dd th��hup�
u
. Oac�mber 1981.Usi�q Wj�c�nt tw� 1 ABC Vdeo nNrpris�s �o tM manthly Wlt.Th�vlwwr h�vinp oa�-w�y,�ddr�sa
cnanneis on tM ITFS Irpu�ncy. ana try 07,msde' Oowwith aW�ubl�Ia pulpp�d W nuiv�d�cod�d�ipn�ls.but h�s
STS'e epht twnuew�un Aaw � �pAtboxinp � brpwatth�p�opnmbyplwe�orm�Il.Noe•�ddr�wbl� ,•
G�n s�M�rq m�aow�w sqnals �frp. MGVUniwr ope�s0 '{ '
Irorn a s«+qN �ntenna to 135 TM 'at�s of P�nt s la itt �Yst�m�un M m�d�b d�wd�p�y-p�r.vi�w�vsab with s::
�omes�n�M�rei.EsM ams• r.vi�w�udie tM ssm� dt�pos�bb Vap�.'Th�w tmdl box��u�o�dio�Aly d�-
m�ntr urries ont chsnnel ol so- niph tM lilm pnmi b�N„�, tipn�d to d�eod�onfy on�w�et,�nd�n dispo��d of�hv
w�rd.Th�subwlb�r must buy�nd aa�ch on�,or w�it Iw ,a%
Oq u+0 one of viC�p pppom- Yak GtY.Md Twa ti�th Go- N�ubl�op�wtor to lettall It
mmQ: tM spnsb un 0� � o:sO�saW i Who in� -
scramdM. u well �s "�0- ive �rt
Eresse0" by �h� oper�tai 8 c the nsults d roc lullitl
headen0 Compuler. w�ich Csn the �romife. View rship. pe-
sw�an channels on arW oH lu Cici lor tM pbla nd SN w+: trsEi�ion�1 media of ihe�ur,p�y Fw pple operstors.43t yesr's �
wY�erwiew snd plGnq p�r. ver es to includa�t 'rd a more aWe,a network N. Pay�psr• ��rims�q�ion was disappoin�-
Ooses. , ol tl subscribars. sred in. visw succasses have been lew: irq.The OemanOS ol movie sw-
RfS: TM epnt cAannels s�e st 10 percen a bss.At SarWars rexhed nesAy�third dios snd Iqh� promuters Iw
m+de ws�lable Ior m�lticlunnel tfu tha loul u � rss ol sd� of the polentisl audience, �s "puarsntees"—as mv�h as�wo �
MOS we.�not inwntad out o� dre ude pbla s tems ud did tM NolmeslCoo�ay boxirq thirds o�tfx tKkel price.il 30
�n�n a��.Uncd receniM.NW Md 5 sutions was m� ma�ch in tM bll ol 1982. psrcem ol subsuibers bouqht
Wen wrt ol tM 2B cNnnNs set m mor� M�� t,,w i,,;p;on p�yq�r-v;ev,�lyo�s p�, tha spo,•,—awM unrea4siic Iw
as�M 1a nonprolil ITfS us�. vie rs. anotMr rout�,on�tMt ind�ytry tMm.A pro�D ol tM larpest cr
ITFS IK��s�u,who us�cM h� �im� w�nt , Iwver of obs�iwn�hink owrld sv�ntwlly d�systsm owners,bsndioq to- -
CvenC�s fa MuuPOnal po 1 • ��tports�We lor p�Y-per- qov�sutc�ssl�l.In lhe hsndlul pett+er �n � consa�ium uNaC •
pramm'a,q, induds hpsDptals. vi we�[s mada prsst claims ol intsractiw uble systsms. Ev�ntTelevis�on, lus dispensed ' .� .
scnool boa�ds.�nd Gtnd�c ucM 1 tl+em. Aftsr T a Wlw corr wMr��sybscriper un maW• with pwrs�tees�nd�s try�rq to ..
Oroc�s�s ce i s disnul s rp. Tvwnt4 rpuest�nd have it insumM�e0- strvctw�tM�conomks ol tlu
Altnouqh tnes� qrouDt hsv� at Ceotury�For d out ol ist�r�t tM uW�systsm i main psY-0a��view Otluinqs so tl+st �
rot y�t maaa I�N vse ol tAS�r �h psy-p�r-viaw ren�. WMn compulK.�ntin dumels Mw csb4 oparnas un maka a
spacu�m sox�.enerc4wn to0� t Piqat pr�m� re DombeC. been Cediated to payyer•vi�w. profit.Its lirst ave��s IiqM 4s� •
on tM wrq�ol s�u�n�nq tM rr C,a�ilorrr� • oper�ta Fikns na Yet svsi4b4�o HBO a Idl.dr�,v cnly 5 to 6 peresnt ol s '' -
so�rces s�E tacnn�csl expe�tise plumly."It'q �brq tims 51�ow1im�un bs bouqht on• po�N+tial�ddressade<abla sudi-
to Oo so. Eaa�de0 ITFS sys- lor�w�tak��nt stW prod�ct on�time bssis Ior t7 to S5.iM snce of 1.2 millan,"puc tha op -
�ems covW c�saea networks o1 ... And tf�e Asmpponshp cuslom��wfww�tchesonly�wo u�tas made monev a+it"x.
bDn.�es, nosauls, �n0 wat• R;np nyt�h co qsyp rtars a tMS�liknt in siR monMS has cpdinq to EvmtTskvislon � �
s�ies �or ed�atqnal sarvwtas. � n S3 millipn, iN the Wv�otaqe3 0l pay td�.:� prss�deet$d Amirra.More soc�
�d5�as o�000sed�hsi l�r ITFS By iM end ol 1 3,ioo 1ew of sion wichout nsvi�,q to b�a f�F acperime�uian by qroups and
cnan�eb m exn of t 02 cides Oe e • nesdy a0 �x�on ade time eubxripsr, sponsas seems Gkely in Ihe sev,
use0 eo esua�sn�Natwnal Nar• es were ep ooed to teka WMn sp tM msjpr pppuy�ipn ar�l yu�s belae technobgical ��
�owcas� Necwork, �o v�ov�de antspa ol pa r-view o11ar• ceMers ue wired Ipr twp-w�y devebpmenis mska pay-per• �
specui�te0 e0uut�on. � s. �nd wants Oe�nq oNered cabla,tM market w�M ba ripe lor rwv live uo�o��s ww*use.
Bui�ne FCC decded tha�W�t ere too le.v to tKe ca0�a oa •steady fbw ol VPV events. JUUE T�IEN
o�Ine ITFS SDeCl�um wpu1C pe �iasloupprsC Inei�syslems .
+�bwe0to�evebpcommerd�Ny ��h sooressab�i��. The mov�a •The P�OSp9Ct8 for pay-per-view keep
m�ne hee marte�.inouqn!t dd udas u�stiR luctsnt io�s-
"qr��i�ine�" �u eusunq ITFS as�Ihst+�n I�1 ..:arw�- retreating.'
assqnrnents sro�od�u�wns. �ew a�en�s: m sports aM Vere�Fakv,Me�i�IC�++cn
MiC��EI$CMwaqz vlestont�nua odo0es�mtM � .
� r+nNNEIS J6 FiEIOGU��E'8�
` �
. . � �-_��-= ��
� AMERICAN SUAVEY � ."
.�;.
:hs choicc af miliury or non•miliury t�ith.Gble is�new�ml unccruie busi• `;
v�iond urvice fw s.eryone fn the rc4 ecu.Wrrn<i�oWn rcteyrch(a rel(-serv
tvant��s�roup.women a wtq�s men. int but intereftin�ttuGy o(aix bi�crble i:
./:-
ud wuuld dlo�v no e:emptbnt, cyctcros),ahow�thal customen are con-
1�.Mr H1n's policial Mutinctf bn���o (uud by h�vin��oo many ch�nnds.The -
; nade Aim rcjea�he poiwn d�••IiEeral" �rera`e Iwuschold.with 70 to 70 cham -
...�bel; Ae did. dter�U.wrin twke {n a nelt to choou Irom.uscJ unlr 9 channcls
:onsena�ive wettern ttats.His rcoord on in a week,�nd�ny tystem o/luin�abovc
a.�it ri�hts.tAe environment�nd rromee �0 wa�Gkelr to h�ve m�ny emp�y.Mora
:Aovn dilijence and im�tinata�.Bored over.durin`the past year a numbcr of �;;•.
�bein� ssked enJleuly about h4�vill- � �, ocvr programmint urvicct have (ailcd, --
n�ncu to appoinc a�voman u Ah vice. �• sdvenisi�g has been f1oW to find i�t Way '-
raaiJeneial nndidate,he hs�answercd •0 ;,"�., on to cable and ehere is�he neW thru�M �i i�
:Aat it mi�ht be more to Ihe poinl.aad ' � competition in dau mmmunications :��
.maek leu o( tokenism, �o �ppoint � (�om the libented loeal Belt telephone
r.wnan as secrcury uf delenee. oompanies. -
In Concord's Ea�le Squsre�n intpire0 . None of this disillusion�vi�h a cornuco-
culp�«Aas bccn eammiuiuned to mske ^ pia o( chan�els dis`uius tAe fact that .�
��=
Siynt caricatures out of the trozen trwW. �f(� •N eable televition u spreadint rapidly. r.:
�n ancient Rea`an a�d a skepily rynical largely because of its mos�populsr pro• �%
�Iw�dalt a�rcady sand ei�ht feq UII: �� duct—new films for a mon�hly subscrip r�
Hart.so fsr. is still a bloek of ite.Tht ,�, lion fee (P�Y''iV). This month cable ':�,
, auestion is Whether Ais featurq,and hi� reached 00% of Amencan omes with
ressa`e.can emer�e bcfore the tno�.�t of ��• • (c evisi n nn s oul rcach r v 19�N1
`Ve�v Hrmpshire melt away, ,����•I What ir4cs customer i►t+cinq unable �o
V�n •I�m t throu to the eable com anv ua t e
Cable televlslon le hone to orCer or tance reQucsts -
eel ated Qube system. lor two-way a • m�sa es�n � �n an t e fail• ;`�
Channels ta bum «k �• .� munity pro�nmmes �.� o� repair �.� �a ,..,��. „ -
m. br i«.i roik «�.
1 Uallas last ek�he new ehairman ,:t'
American pbk tekvisan companies o( arner Amex the/wmer trancpon Sm(thson(a�Institutlon
ha.e hro�ood eacuses la baciciet out ot u enry, M� Dr w (,eWis,complained
�he e�tnvajant promises thcy made to �ha {t had :pent S7.tm on oommunity Spreading its `
cities Which �ave �hem (ranchises: they ch nels which h ve d►awn only 0.696 of ���:
c�n� make pro(its if the promisec �re t audience. He now w�ntsthe ow�n wings
kcpi.and wobody Wuches more than JO o( allas apart nt buildin`t to handle .t;:.
chaneels any�.ay, That bab Gets�rere - ablatekvia billin� (or al� their
oMious to outsiden years a�o is no re �u or b pa (or installin�the wble '"�`"iOfON°C =
' consolaeion to the uompanies or the eity t mulves. He Iso wanu to poetpone There is to be�new chief next Septembcr
councilt�rho�warded the(ra�chises. 1 insull�tion an optical (ibre dau at that fabulously rich and phenomenally '
The companies h�.�e seen construction ne work until some customers are popular conelomerate of the museum '
cos�s riu eo t�ice their esiimates Whilc fo nd--and to r ise rates. And he an- world.W�zhin�ton's$mithsonianlnctitu- '�:'.
�he ncW ro¢nmme urvices w�t whic �ced the sus n:ion of Qube,�vhich tion. Mr Dillon Riplcy,a pa�rician orni-
t�ev mten ed to fill t eir 80 or� h a total o(on )25.00U subccriben in thologist,wi11 stcp doWn volunurily from --
c ann�hav� dn�ed up a�s s�vertis�eg �i cities, thc post ol secrcury, at the aee o(71,
and w �cnces a�c �Td o mater�a iI u�. ea n Mil�raukee,a rrtek tarlitr,with Iht after presidine over 20 yean of dnma�ic
tAt citits Which aWarded tAe franehius to i� ccarcely dry on the contract si�ned expansion. He will be s�cceeCed by Mr
�I+e bidden rri�h the most�olden prom- �v h the ei�y last une,Mr Lewis ctun�ed Robert McCo�mick Adams, a 57-ycar-
�ses have no Way M competlint the eom• t city council ith his intended chanees otd an�hropologist and •rrchacul�gi:e.
panics to deliver �hc �oods.TAey must o plan.No dou e cable,only►i�ele;hal( who became provast of the Uni�ersity ol
�ecidc whether to Iet the cable mmpanies � number o( romiud channels—nut Chicago nro yean•rgo.
niu the ntes to subscriben (which 1 bW 53; a r duction in local access A S300m-a-year entcrprise W;th some
means �hat feWCr can view cable), Ict c anncls(rom 1 to6(�.�ith�hecieytopay 5.000 employees, 13 muuume.a xno.�
iAem build leu ambi�iovs systems or fine f r these)and g bpe to the dream o(a (ar-flung network of research centres and
�hem. �rhich is lantamount �o pueeinQ ivenal. (ree asic service u( �':han. its oWn masstirculation magaxine. �he
debton in�he ppprApuu. Is. Milwauk e is mnsidering legal 137-year�old Smilhsonian is perhaps
Wamer Art+ea Csble,�vAich won most ion. America's most popular tuurisi aurec-
o(tAe bi`ycst Innchises a(eW yean a�o. Other cieics herc cabk omius arc �io�; i� had 21m visitors I�at year. And �y
ic no�r budest in be�yin�to be kt oft the rinkin are cramento w�ere the cilv tht post o(secrotary is Widely conxiJereJ � --
laok.This mo��h the eompany,�vhich i� i se11 ehan e a e am a��es�n urder tu be America't hi;hest culiural pucitiun.
capected to announce btsesof more than t et a c ea svstem.Clun o. �an- Thc ycar•bn; search for Mr Ripley'c
f7CIm fo� 198}, hu asked Dallas and u u, r m tun, ir �ma a oUS- succcssor involved the sitting o(some 3(�
MilWaukee for relie(,md Pittsburgh and aIe Anzona. c+ndidatcs by a ulection pa�el ihyt in-
paru of NeW York aty may alw be due NeW u he s. Warncr AmeK's neW cluded Ihc president o(Prince�nn Uniycr•
fw eutbuks. What Warner Ame:most hairman spea x for thc inJustry when he sier, the Chie( 1us�ice uf the Unitcd
w�nu to trim or postpooe ue the services ys that �he �mpaoies oversold their Sta�es �nd a Nobel physicist, among
in which i romises shone bri;h�est:i�t arcs w�et fr nchix•s hut JiJ w in gaK1 whers.
�[[GO�.Ow6T yrw/u1v M.��y Z� -
S.
.::i
7i�- 'T:: �: ..`
, . � � � �s' �.�8
�F.y�•$�ON nc• cadc(13 millioe.no�23.{million). .1�.
• ' �: ezed bclvccn escalatin�cau�nd
r turncdoQeonsumen.ma�nble mtreprc. •^:'
.,.��
neun are turin�n easudes of red ink.
w Some have cimply pulied tht plu�:C8S'� :i_.
� , � tultunlly oricnted nble c6anncl, ACA't , jt,
Entertainmenl Channel �nd AHGWat- ::
in�houu'�S�teliite Nevt Channd all fold- -�`".
ed Jtu�b�o�bin�trns of millions o(dollars �'�'
�� in lostes.'A k�of tAe turvivors,eoubly =
" Time[ac.•�Homc Bo�Offiee,�rc finaily
,! �. � rcpstuin�wlid�roRt:.Yet evrn the medi• � �
um't most nn�wnc ptophets ue predietin�
� furtha ch�keouts and eutMcks.As�reant �i,':, '
utide in Gble Marketint�eported:"No�
u+e basic arviee eurrently rati wmfon-
ably pn a 6t 6naneial eushion."
�Fb Aecs.c Thc doldrums aflfietin`uble •
i� ean be tneed to myriad hetors,wmc lying ,z,:
ouaide the industry't eontrol�nd some tied
diratly b its ovn miu�leulaions. For
� ' �,. �� openers,the aewal virin�of�he"vired `�
� nation," vhieh bepn in Ihe 1960s, has
'� • , I��teddismallybehindeapau�ions.lnthe
�� � .�" • ' � �• bi�e'ttiet,vhere the tosts of I�yin`down
• / .! r �' uble fu esaed those io cm�ll torns.eon•
� � etruetion has:lo�ed to�envt.One survey
A co�oltcA/ro�.µ�fnArsrry:Caw ilic4 uJ! rlmlii�o fa In iowlV nt�? of the n�tio�i 10 lar�es�metropoGun re-
t l l pons found that no las than 70 perun�of
thou bomes e1i11 havc no�eeess to uble. -
_ C able's Los Pr , TO °x�urb�te their he�dacha, uble
���� eompania feverisAly Eiddin� for urban
fnnehisa promiud d1 manner of e:otie
wviea—ineludin�homc shoppint.bank•
Are subscribers to alterna ive cha nels tuning out? '"�.ind '�"^'Y v�������^—�^a. �n�� _-
AU thra eommereiali are eut hom t6at viewcr rai: u to t6e vire'e aJlure hu m�ny ryr.nd�v p r�ene�In�oe ecn nctulal �
follcsy,feel•�ood mold that Madison promptedind strysoothuyerstodrastiul• eommitmenta Cynthia Po1s, Icpslative
Avrnuehuwlovin�lyembneed.Onepre- lysealebacko eecuphorieprojections.Last eounscl to lhe National Lu�ue of Cities,
w+ts�n clduly eouple ttrollin�past a vhite May�leadin rsearch fum rcvised its ati• rcports that`virtually everyeity thal�nnt-
p�cket knu; �nother ihort � pi�tailed matcs and pr icted halfumanynevbuic- ed a fr�nehise in the las�6ve yws h�s had a -
moppe�boundin�Gom a uhool bus inw hu uEle suburi for thi:yur(2.7 million, bt of�roubla."So,too,have viewcR.Pols `''
maAcr't ums;in the third,an endurin`ly not the upec ed 3.1 miUion).The eontne- un tiek oQ� liun�o(eomplaints�bout `:;i`
uraect eoUete professor urives bome to be tion ia�rovt hu most seriously alfated pover brnkdownc.incorteet billin`.:hod• .�'; .
�rated bp��ammy<IaE tyke eluteAint a pay�eable ntors—those vho oQcr spe• dy installalion�nd urviee delays.In wme
tcddybur.Hutasquieklybeeomaevidrn4 ei�lizedeAan ds(m�.,prcmiummovia)for huvilysubsc�bednei`hborhoods,eustom-
ihif hun•tu`gin�sC umpai�n u not de- an e:tn mo thly fa.'11�e itudy fo�aut crs telephoning for repain may have to ``
si�nedtoruehout�ndtouch.uy,potential that the num of vievers si;nint up for endure up to 20 minuta of Muzak before .�::
bn�disunu eallers,F�eh�(}..setond dn• pay T'V vou fall by!2 perernt o�er the hurina a livt human voice.Gbtc opcntors
m�concluda vith its playen eozily nestled un also be�eeused of underatimatina ihc
belore � tdcvision ut, vhile o�uran � eompctition from wher emergint IecAnol. �
' duket ehonu triUc:"GDIe i not just n�o.r pAY TY'S EAK RECEPTION opa.Ameriuns noW own�bout 16 million �,.`
cboice,'it't}our ehaee.^ �, �y� „ video-casseue recordcrs,�nE many cxpcns
So runs the masa je of the uble•TV in- � ��� �0`�� � �
dustry'e6n�natioavidepromotionalum- �p,w� d"0aa'�t�Q��'^�b suspeetthatthey�reeuuin6intopayuble's
�Y 9�• ►rw ti�a rtiis�d Ow�stim�iec. hold on the morie•addicled audienee.
pai�n,s S6 million.multimedia blitz sehed- The failin�that loom:largest.hovcver,
ulad for I�uneL early next ye�r.iLe raeue ..,� is uble i inesplicablc ngernas�o(all vic• -
cRon may veU.be too little. if aot too ' tim to itc o�n hype. All those �randiosc .
laie.Gble.tAat npturously touted maaiea! � prcdiclioneof 105-ehannel tystems(a(ca•of �.�
connation to`tLe a�e of alternative televi• vhich aetually eaist)ncglcc�ed io ukc inio
YOq"(bY�'�Y�"�e viEoo revolut'an").is �ccount a stubbornly immutablc lav o(sup-
ondcr�oin� � Kvcre nrlylifc rosit Md � • ply.Thcre umply isn'�cnough quality pro-
•Ailc that doesn't oeccsuiily forebode � � `nmmin��round to fill IO ehannels,mucA
prcmaturc burnout,no amount of slick ee11 � � Iess chow���i otfcr dis�inetivc dcpanura ��;'
�ppun likely�o mineulously elur up—or Mel new pq from vhat's on thc three nctvorks.A k�• �
c�rn temporarily 6ne-4une—a pieture eud- �++b�t t � u�lce�sters havc o�ercome�hc"softr•are
Ecnly jone so uke�•. . �.,b�
Thc�lopmiesl ponen�is a muked levtl• S `tP�by e►eatin�ner•video forms;MTV is
��E oQ in the medium't nte of eapansion, o �. �he mos�obvieus eaample.Bu�eontrary to
71+ou h�� n r e „ � n N. � its promises,uble has,E�•�nd larye,pra t
i perun�o(all TV homa in thc �N �0� �� duccd more of�n«ho than a choicc."A
Un��cd Suta no�• 4ke uble, inere�in` tervieethal�unedasansno�•tastedalter-
�E�'Sy'EEK/OCiOBER I3.IVN
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� �,�TEIE ISION . � �(� .. i� .
�•.�wtire t ihc brwdcauin� �ccvak� Au j . . ��E.
('�rally me�dviwtivc."uys David Pol- � �•
;',traek,a praident fw raurch at CBS.� � � :E+
_ •• . . � ��
, ..r. ��,. While Poltnek b hardiy an imputiiT ' ��t;
R' � y'r judte.A indictmrnt urtia eontiduabie r, }',';-
� •� 1`;evidrnt .vd�hwTh&fiU,�nunpteudena" � ,��.c:
ti� � �cd aum of�neicnt nawork uria.vill De ' � � � �+-:.
(":. � duued �nd cneked b�ek{nto Ameriean ' t
: • � • � Nvin s via the abk aire.At the USA ' 'v �%
,,}:�:= t
'��:t. Gbk N worlc,tor eumplq lhe rctro`ndc : ' ✓ r�==
;'-t�':' •• � . �• �rcrua li eup intluda"Brid`et Lova Bu- �v.`
�-`tT?; . . �• . � � nie."` t Grol�Ted k Aliee,"•''fhe +'� � ;,s�
. i�. Gon�S w"�nd"J7�eFlyin�Nun." ,�� . •�:
;•. . • � � :; 71ut not w imply that uble eom nia �'� ; n
:'r��. � �� �;.
j l;`: . ve turn n��way from produdn�thar o�va : ;�
�hows. problan b that w mueh of thdt
�.' . ��5.
,'.'. : �+II ori�inal pro�nmmint unaba:M :u
%�•` ':.adly m ia the tired format:of eonvrn• ( }=�
'� ''�:tiona!t cvisioa.Even as thc networks sam . � �:,,:�
y �.-, ,_
=;rc,•_ �. b be nally �bandonin� sitwtion oom- � 1 ' ''�'
i'`� '
� " : edies.t tFw�ry�rnrehaifound�velcome � ,� :*,�
•?�:i ;� ou1 oa bk.Thou�h"'Brahcrc,'�sitcom 'Dor�N to Eairh}Dije ri�rinj/iom N7BS `�:�
�,aatad �heShowtimeehannd.futureia �:;=
ual prou�onist.it is basiully re- loul communi�ia ind spceializcd tu�a in ,'F
� : p�elu� Norman Lnr drascd up in��y waysthatconvrntionalbrwduslin`isboth .fii
�''�� • ; �T�PW i. Equally familiar is "Down to unablc�nd un�•illing�o do."Wha�in the
�:~� Eattb. �ne�v entry at T�d Turncr'c WT85 hd)Icind of uble is i��vhen you'rc brinE�^E
I� "Su ution."Thisoneconcernstheuny ;in CNN. which is a nctwork.or ESP\, '
«�f' i.'mish� of an�n�el dispatehed to F�rth to:�rrAith is anotha netw•ork?" asks K�hn. --
tern bousekapet for thra prccocious �"Wby prolifera�e � knxkoR of the ne�• .•;.y;
�`��:� � � ehild .Gbk's elfortt in!he mini-aria vorks?Therc:hould be a�ru�dcal more -
'';-1�. � � form ve�lso f�llca a lon�way chort of erutivcpro�nmmin�oflouloritination." =`�
;':�!- �_ btu ' �frah �round. H80':"The Fu As it happent,eable seems�o be dacn ��.'
,;��!:� ' Pari6 ^Wrned out to be"Shojun"with • minedly movin�in preeittly the opposite
:;tq;!f � ck ts,and mwe ploddint at that.Simi• diration.InstudofoRerin�aeornueopiaof •�:
�`''�� � peeiabinterat channels and dnwinE on • r:
.r ; larly. Countdovn lo Loolcin Glau."an s
'.�r• u 'nt H80 drama �bout the evrnts Ixal reservart of ulenl w erute��olden *
',�..� S •ladin up to�audur war,wunds like ��eofvidcoplunlism,thetrendislow•srda �
�";� ����.." �!�: ,:"7'he �y Atar^a yeu later. limited number of channels bumed a� a w ' �� � 't
�; � ,¢ ��, { "- As the Gotiath o(p�y uble. mau wdiena.P�rt of the teason fw�he •-
't� :;- .� ,� �Q' HBO p►esrnu�handyputeoftheindua turnabout u aonomia Gble arviea do , ;
,i,«� � : 1ry'cf una.Andlikeitssmallerriv�ls,the p endenl on�d�enisin j revenua 6�v«om �
�';t. '"`` O j sc+vi isvitnasin�a�harp�ba�emento(iu eluded that only lar�e num�en of view•crs -
•-;•Z. � oau r�eonin�trowth.Durin�the6rotsit um m�u enou�h sponsors for them �o
mon of 19d�,HBO sitned up new eut- turvive.But the shif�an also be lneed to a
,��.?. tome �t barely onahalf iu ntc for the psyeholotiulf�ctor.Manyofthemedium's ''=
ame pc�od las� yur. Imhouu rumors, topexaWivesw�rc«cruiteOfromnetwork �`:.:
. - ,,,;' - of i inrnt IayoRs beume so nmpan� nnks.�nd brougM�he ume mass•ap�xal.
` 1 that t e 6rm's mana�cment recently Iook play-it-u(e mentali�y Ihat governs the nei-
(•:. V\ . an c notdinary ution—aummonin` all vork produet.These da��s.ubk projram- `'
7.:; � 1.70p its New Yo�k City employees�o the men boasl�boul—and aeonizc o�•er—lu� ,`'
'��: Rose nd dance hall for�two-hour morale- ni�ht't Nielsrn�umbers ta�ctly like�heir
_ . �� build `scssion."This hu bcrn�difficul� , eoumcryans�tABC.CBS�ndNBC. -
�, peri for us," conecda NBO praiden� 4oay: A few• months ago The Mo�ie -
j Q Mich d FucAs.Hut the eombative Fuch: Channd sl�rted production on i�s firsi
I rema emphatiully oonvinced of tht me- made-for-paytable film.According to thc
` dium s ulcima�e victory:"The du�h of u- channel'c pras rdease, "Thc Ra�ings
. ; bk? �re�ored with the ttory.Gble has G�me,'�cthccomedywillbeulled."►lew• ';'_.
�d-�, ; not d itsclf to the publie well enough,ye� ers network tdcvision't most ucred cow— -
_ � h'� udypartoftherntenainmcntfabric Ihentinjs�aee.{l�)tellshor•VicpeSalvo.a '=
;. � i oft country.l�'llcome.Dac{c." rambunctiout New)ersey �ruckin` ma�• �`'
_::`"• .� ; A bullish acsessmenl is oRered by nate....Uka on the challcnEe whicli has "_'~:�
;�"; � � i Irvin Kahn.who.as praident of the`iant occurred to evcry vicWer.'1 un do beuer '?•
� �� , � Tde rompterCorp.durin�the'60s,urned �han thal""!n li�ht of the ublc industr�'s
- 1 � ' � � , i �r tation as onc of tht induslry's mosl curttntly prevailin�mind•set.it is dif�icult =_'
visi ry pionecrt.Alon�vith o�her lon`• to raist �vondering whether anyone con- !�-'
� � Ume studcntt of the medium, Kahn tub- necledwi�hthitprojectsenustheirony. �:�
� fCil l0 lht belid that uble hlf �ban• HARRY F.WATEIIS.wM MAR/:D.UEHLING ,_
1 . �� � � � don its historic nison d'ftre: �o urve „�,�.��,,,�
� �� . i �� . � u . �� . � '
NE N'EEKiOCTOBER IS,19ta �Q<
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By Stwe J�noinp lu��..��K►�wn.r by�xuentid '
SDK�aI Cai�sOa+d�m �umt' .17W fa+.er thrn projec�cd � i��:.
under�*crlkd'w�«K'�' cwlomen m iu erble ot(erin�.. y.�-
PORTUI�I).OII—dcitye le � ��ntl����'(u Alth�w�h thr prncl mrjurity =£°'
• tcla�iwm nticul�ttxy�vmm'' ���.�wn rrrlicr WuJntid• wled (�a d�n relic( p+ckr�e. rl 't;`-:.
hra rppnnrd r let rclk(�wc �. n"'^• ' kut t�.o commiuion memben �;;
�1�u{.;mill'wn wrr the t �'� '^4 4i M'��"cl Kau'.un in• �id the crble(r�nchi,e hud bcen ���.
� Y�)CY(i Gw(inan��rll�•prc dr��c dent Gnrnci�l �unwltant mum�nared.�nd th�i �he ciiy . '``��
i hin d�e�Y�y�+rahie�+(�u�en t•'•_-
Rq,�aYS Crblry sirn�s d l nd. �' �F�aild not�et tn b�il out thc com• •.c-t.
(iscu he�lth.the a�mprny N•ill r,'�,.
' Vq wet�'s rction (ulk n theequi�+lenlo(t41 milliun P�^Y• 47';
nw�du u(�lud? by the eit .iu Another commiuion membcr +•�•
eon�ultrnu rnd the erblt m- in• ditiemal erpiul tulceepoper- d���b w���h�Rliel plrn
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w�ry•.lt in�iud�rbuut f°-. mil- •lin the ne:t si:yr�rs. �leN�he C�nt eecriMed�writun ;:ti-
rnun Athber. ■ v'�et preci- ;. f-.
iun in t6r Gvm o(dr(ern t� drn (ur the Gnudi�n uompa�)'�� �mitment(rom the uble oom•
`�u�en uthen�'iie Nvuld p �'(w an '�crediu+n bindin�them a '+..:`.
An ricun-bu.rd holdinr-crom- P Y k'
�ts r•r.t Ibrtland Iryn��hi• llir ,��;'
.oropam alr�..��u1J be rl u..rd I�y )'.tuld the commiuion thrt �restructurin�n(Rogen'Je t. Y.
cu tnct relief would be needcd Althou�h Rc�crs o!F'unlxnd i► .:�.
:o dn�p r�nir���.I p11IINM f�'�•• Ifl!ffl�f IU►RO�'!I1 M R�llUCILLR prim�ril�•r unit ul tht Can�dirn ,,i.
�11f I�M':II�IQ�;fi11Of111O�;l\1 t.. „1 debt.�nd rria(�wr+ble oon- crble�omprn�•.tht(our�e�roW :'.,.
.4kliun+I1..J�•4�Itr �u��• �i i•rrtiononnea•ki�n►eVuuu. �otum���+rtructuredioincludr y'��,.
' �w,�l y�•y,��(n+u�w m4 ia �b�,�M�)'has Wuned ■nurober u(thc city'c moct�wlit- `;:.
'ILn,�a,-b�.rJ p•rn•nt—{u�;cn -
(:rbin)'s�rm.—+�N�t S'-'l���il• it pnibleroc on hirhrnth�nti- icrlly�ntl awnomiully{w�.ertul _
liun in pn�j.�K�d �nrnu en�rnt f �'� hUO�'�P°O1tc.expemi�e citizenr��limi�ed pactnene. -
n.lrtrr �yuem.: heny debt The relief ineasure w�s wp- -
lrr.lhrvu�;h 1'rw. poried by D.vid C.Olwn.direc-
'll�edal•iikm.appnn. b�'luw lot o(the cilp�� �•�bl� alfitt. . -
o( thc rc4��lru�r� i.���� i�:.um'� Cit�• of(ici�lc uid thc ublr
ce�cn b�rnl n�cmbcr.. ill mm tommic►ion uction oould�n bc-
bt re(crrtJ tn tl�c rit�iv ncil(ur (ore lhe a��y c�u+�cil wilhin�wo t�
linal rction.�7u•�vwn•il i�r►• (our wcelu tur(in�l�ppro�rl. O
pn•�ed w upMdJ ihe Il�, cn wta ,
Tl�e n�e relie!pac re d«�
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Mu�hchannel News—february a. 1985
Warner Am x es Sale �`St�������•idc durin�tlx. ���< <<.,,�
� months. Mr. I.erer said this Ic►.s
���as nnt unusual considering the
� Dalias C bl System ratc hikes and repackaging of
ticrs.• �
Warner has a basic penetration
Or1LLAS—WarnerAmex Cab ��•mte o the ma�•or asking for a r.�t�� hcre o[ about ?6 perccnt.
G�mmunications Inc. last�.•cc racka e o[franchise concessions ulthou��h penevation in�Icsquitc
s:iid it is considering the sale [ and a ut seven months alter thc and N arniers Branch are somc-
itc(inanriall�•ailing 81,lKlU-su cit�� a eed to grant over �?.i �.•hat higher. The company has
�criber s�•stem here less than fi millio in operating and deferr��c1 also run into heav�•criticism from ;
�•cars after winning the tranchi rapita savings. subs and cit��o(f+cials because o(
' and se�•eral months befoce con- Ke Lerer. .vice president o[ allegedinadequatecustomerscr- _._
� pletinb►construction. oorpo te aEfairs for Warner,said vicr in l�bi3 and recent m�nths.
� Drca• Le�vis..chairman a � .theco panvhasbeenapproach- Mai•or Ta�•lor told 'local
chicf esecutive of(icer of Warn r ed b�• 'several interested parties'� repocters that Mr. Lc��'is ���as ;
.4mex. called DaUas ma�•or . rn�cr t e past fe�.•months.Warner apologetic about Warner's pertor-
Starke Tavlor last �veek to 11 �tfiri ls declined to•name the mance and admitted that thc
him the ne�.•s aiter reports abo t� parti s.. but industn� sources rnropam•had not lived up t�it� ::,s
the possible sale suriaced in I pegg twoo[them as Sammons promises. The ma�•or also said
ne��•spapers.The call came litt e Com unications, which has a the cit�•may have to agree to tur-
m�re than a year after 1Vii Le�.is s}su in nearby Fort Worth,and ther lranchise concessans if the
�- 'lele- mmunications Inc. s�•stem is sold. ` � '
� Bi .Strange, executive vice Mr. Lerer said compan�
presi ent oE Sammons,declined o(Ccials have not yet.decided
'to co ment on the ston�..John ��•hether to sell the system. Hc
� Mal ne, president and�cbiet declined to sa��vhen the dccision
� exec tive officerof TCI,said his miE;ht be made, but said it pro-
• cnm am•had been o[fered either babh• "�vill not be a protracted
['itts urgh or Dallas by Warner �imcess." �
last ear and chose Pittsburgh. "
. I,erer said Warner decid-
ed t consider selling the svstem
abn t a month ago. He said a
� maj r iactor in the decision��•as
"thc dif[icult histon� that ��c�vc
had n the citv.��
T e Dallas iranchise, which
also incor�rates the smaUcr
cY>m iunities �f Mc.cquitc :�nd
Fan u�n Branch. has kx•cn a bi�
dr�i un Werncr�s fin.+nci���inri�
�rn.tnicti�n of thr.;'�II,IhNI-�i�mx•
:�st•m be•�:an. �'lr. f,�•rt•r s:iid thr
s�•t m I�r�t S:>II milli��n in I')}{:i
. ' andsli�htl� I�•�slh:in4lUmilli��n
la<t ��•:ir. I1 i� ��n�jr�•t�•�I lu In�•
� :in� h�•r ti3U niilli��n thi.. ��•ar.
..h n th�•r�•nu�inin�ri�ht�K•n•rnt
�f hc franrhi�r i� �lau•c1 t�� M•
(ini lu•d.
. .lu�•�:tr�n h:i,al��li�•�•n In--
in��uh:�•rilN•n:in�•�•��crr.�l Ii�•r
Ir:i�� liikr•�.�•n�in����•(frrt in:�u�.
� �It ���u_I� il rr_��t�•rr�l a rn•� _�un
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Nat u here �iven tl�at f#►e C�t ��`rnti�cil ai'��it�►ot� . ,Dtfnn��ota
at �'���r
,�►iH � 8i�.�`� �hsx�ibet�c,'T�ird FT�Y'4f�`��.�i't� � �rt��.;
.iii th� t nl�5t: `�i�ieapt�ai"� ` �s� p�t
i��e �itig tt� fa'a�c �e to , on � Wn of��t;�.
`P�su�i . to ailo a"si�sgle cable comm�ication�systear in 5t. Paul.Minrie�cta
._ �ad to d certai consumer�rotec�ffoiff c�euse�, ,;
A q of the� roposed vrdi��is ava'iia#��e.�or gublic inspe�tiam at the Of:
f ice oi t e City Cl k,:Rooru 386,Cit�►Ha��arid�Courthouse in St.Paul,D�[innesota.
At the me and p ce fixed for#'ublic Hearin�thp Cit�g'��i�+0�t tE�e��t�0��sk
PsK�;� l.giv�sll ns who a�pear at.th,e:�ring ew oppc�nlu�t;��to��press
their s with spect fo the P;oP�ea ordinaEl,ae. r,:. . . . .
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