Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 2, 1991 TAG: 9104020232
SECTION: EXTRA PAGE: 6 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
This isn't from NASA, though; this is the tacit message from last week's convention of the National Cable Television Association.
Traditionally, the gathering of the NCTA, the $20 billion industry's biggest group, serves as the launching pad for new cable networks. Last year, specialized networks like the Sci-Fi Channel, the Cowboy Channel and others announced plans to launch. So far, they haven't.
This year, the scarcity of new ventures is conspicuous. The recession is partly to blame, but much of it is because many cable systems don't have an empty channel to spare.
Only the Monitor Channel, a 24-hour network for news, analysis and features, and Encore, a low-cost pay TV service featuring hit movies from the '60s, '70s and '80s, have scheduled startups this month.
Other new services have merged with their rivals.
CTV: The Comedy Network launched Monday with absolutely no fanfare. It was formed through the merger of MTV Network's Ha! The TV Comedy Network and HBO's The Comedy Channel. Both comedy ventures lost an unfunny amount of money in competition and hope to become profitable together.
Cablevision Systems Corp. and Time-Warner merged their "legal channel" ventures into the American Courtroom Network, a 24-hour showcase of sensational and newsworthy trials, before either partner ever sent a signal down a cable.
Nevertheless, the tone of last week's convention was upbeat.
"I don't think I've ever seen this industry as confident as it is today," said James Mooney, the NCTA president.
He cited CNN's coverage of the Gulf War, which boosted the industry's image, and last month's pay cable movie "The Josephine Baker Story" on HBO, which outperformed the broadcast networks in HBO subscriber homes.
Consider these numbers, compiled from cable industry sources:
Market share: As of February, just under 60 percent of the 93.1 million U.S. television households get cable, not counting the myriad hotel rooms and taverns outside the A.C. Nielsen Co. ratings "universe."
Income: Advertising revenues for 1990 were about $2.5 billion; subscription fees accounted for $17.8 billion.
Growth: U.S. cable systems totaled 2,490 in 1970; by 1990, there were 9,575.
Diversity: Fully 65 percent of cable systems have at least 30 and as many as 53 channels; 24 percent have 54 or more.
And yet each of those rosy numbers has its evil twin:
The growth of national cable networks - the MTVs, HBOs, Weather Channels and CNNs - has been virtually flat since 1987. There were about 70 then, there are about 70 today.
So-called "basic cable" is the industry's engine; pay cable subscription has slumped since '87, declining 3.1 percent last year.
Skyrocketing cable rates and customer service gripes have prompted Congress, which removed cable rate-setting from local governments with the Cable Act of 1984, and the Federal Communications Commission to consider reregulating cable, making laws or regulations which "bolster competition."
"We will oppose cable legislation this year," Mooney told the convention in New Orleans. "But make no mistake: We're in a real fight and we will not win it unless we spare no effort in telling our story."
The NCTA's board on Thursday OK'd a $10 million public relations campaign.
"Any cable rate increase that cannot be justified to the subscriber is a political setback for us, and too many of these setbacks will tip the balance against us in Congress," Mooney said.
"If policy makers want constantly improving programming, state-of-the-art technology and top-notch customer service - as we believe the public does - then policy makers need to recognize this all costs money," he said.
Despite the regulatory challenges, no one in the cable industry is pessimistic about its future.
TCI's president, John Malone, said it's "highly realistic" to predict that within five years, some cable systems will have 200 to 500 channels and be capable of delivering high-definition video, or HDTV.
"Technologically, that's a given," Malone said.
by CNB