LAS VEGAS -- It’s “increasingly likely” that NAACP will start boycott soon against one of Big 4 TV networks (unnamed) and its advertisers because of what Assn. Pres. Kweisi Mfume called networks’ “snail’s pace” in their diversity efforts after they all signed agreements last year to increase those efforts (CD Jan 10/00 p1). At appearance before NATPE convention here Mon. afternoon, he also called for return of financial syndication (finsyn) rule that prohibited networks from having financial interests in syndicating programming, and for legislation requiring networks to air 3 hours weekly of programs written, starring and produced by minorities. As justification for latter, he cited FCC’s 3-hour kid TV rule.
January 25, 2001 by Sasha Samberg-Champion|Miscellaneous
“We need to move the process of Sec. 271 into high gear,” new House Commerce Committee Chmn. Tauzin (R-La.) told us in Wed. interview on his priorities for House session that begins Jan. 30. On none of his core issues was Tauzin ready to propose specific legislation. He said panel would explore several options for getting Bell companies into long distance, depending on FCC cooperation. Tauzin also said he still was unsure how much legislation would be required to reform FCC and how much new agency Chmn. Powell could accomplish on his own. He said he would ask Committee “literally to do a top-down review of the digital [TV] transition,” which he said was “really off track now.”
NBC and Hearst-Argyle TV will combine their production and distribution units under new agreement, terms not disclosed. New venture, to be headed by Ed Wilson, pres. of NBC Enterprise, will allow partners to focus on producing original programming for cable and weekend syndication market, Wilson said.
Cidera quietly became latest satellite company to admit plans of big profits in Internet business were being tempered with “coolness” of capital markets and need to grow at slower pace. Those factors coupled with rapid development of fiber networks expanding into remote areas and lagging demand for satellite Internet services have hurt company, industry sources said. Seeking to streamline operations and get clear focus on future, Cidera rewrote business plan despite raising $75 million from private investors last month and brought back former CEO Douglas Humphrey to replace Richard Hanna, who became “victim of the dot- com plague,” a source said. Cidera cut staff 1/3 with layoff of 100 workers, including 5 members of senior management. While company has been close-mouthed about plans, it has indicated it will use its satellite network to concentrate more on niche business customers rather than broader Internet.
FCC’s latest report on long distance industry -- Statistics of the Long Distance Telecommunications Industry -- includes variety of data for 1999: (1) Long distance industry had $108 billion in revenue in 1999, up from $105 billion in 1998. (2) International revenue has grown fivefold since 1984 to more than $20 billion in 1999. (3) AT&T’s share of long distance market had fallen to 40% in 1999 from 90% in 1984. WorldCom’s share in 1999 was 25%, Sprint’s 10% and more than 700 other long distance carriers had remaining 25%. (4) Average household spent $64 per month on telecom services, $21 for services provided by long distance carriers, $34 for local exchange, rest for wireless carriers. (5) Residential phone bills showed 38% of toll calls in 1999 were interstate and accounted for 50% of toll min.; 33% of residential long distance min. were accrued on weekdays, 30% on weekday evenings, 37% on weekends.
WideOpenWest signed deal with DemandVideo to offer latter’s video-on-demand (VoD) service in markets where it’s building competitive cable systems. Using DemandVideo’s VoD technology and service, WideOpenWest said it would offer subscribers choice of recent Hollywood movies, classic films, children’s and family programming and instructional shows. Customers will have 24 hours of unlimited viewing of any title they select and will be able to pause, play, rewind, fast-forward or restart titles. Cable overbuilder announced deal Wed., day after concluding 3-year pact with Source Media to use latter’s interactive program guide and local programming service. WideOpenWest said it planned to start offering 2 services first in Denver area in March.
AOL Time Warner announced plans to lay off some 2,000 employees -- 3% of its total staff -- as part of its general postmerger restructuring. The cutbacks encompass 725 at AOL, including 300 in Washington area, and 1,300 at Time Warner in N.Y., L.A., Washington and elsewhere. Company also said it intended to sell or close its 130 Warner Bros. retail stores, affecting another 3,800 employees. AOL Time Warner said it would consolidate some of Warner Bros.’ Web sites and freeze hiring at its cable systems, cable programming networks and WB network. Moves come on top of restructuring CNN announced last week that will eliminate another 400 jobs. Although they don’t expect latest restructuring to generate big cost savings, company officials said AOL Time Warner was on track to meet its revenue growth targets of 12%-15% for year.
OpenTV signed deal with Bell ExpressVu to offer interactive TV services to Canadian DBS subscribers, starting in summer. OpenTV said services would include interactive weather and TV commerce. Bell ExpressVu will add 725,000 subscribers to OpenTV’s potential reach of more than 30 million TV viewers worldwide.
WorldGate Communications said it would introduce upgraded version of its interactive TV (ITV) service to cable operators and subscribers in first quarter. Company said new ITV service would feature improved Web browser, greater TV commerce capability, various image enhancements and Spanish-language chat. WorldGate said it would deploy new ITV features in both U.S. and Latin America.
As expected, FCC has embarked on reexamination of whether there is continued need for spectrum cap and cellular cross- interest rule for commercial mobile radio service providers. Notice of proposed rulemaking (NPRM) issued late Wed. (CD Jan 23 p1), but approved by FCC last Fri., seeks comment on whether wireless market has changed significantly since last time agency examined issue in 1999, when it decided to keep spectrum limits intact to safeguard competition. Point is to examine whether competition has grown to extent that spectrum restrictions can be lifted or relaxed, NPRM said. Questions in notice included role FCC plays in examining market impact of wireless deals vs. purview of Dept. of Justice.