Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, June 18, 1993 TAG: 9306180107
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: MELANIE S. HATTER STAFF WRITER
DATELINE: LENGTH: Medium
"I want cash," said Robert Lee, general manager of WDBJ. But until he sits down with Cox Cable Roanoke Inc. to discuss terms, "I don't have a figure in mind."
Gretchen Shine, Cox Cable Roanoke vice president and general manager, said WDBJ, WSLS and WSET all requested payment. By Thursday afternoon, she had not heard from WJPR/WVFT and the religious broadcaster WEFC.
Thursday was the deadline set by the Federal Communications Commission for broadcasters across the country to tell cable operators if they want one of two options: "must carry" or "retransmission consent."
The retransmission provision, contained in a bill passed by Congress last fall regulating cable TV prices, means local cable systems would pay over-the-air stations when they retransmit the broadcasters' signals.
Alternatively, broadcasters can choose the "must carry" option, or a guarantee that their programming would be carried by the cable company.
Public television stations across the country have chosen to be carried rather than paid. "Public stations have benefited from the cable company, which has supported us," said Larry Dyer, general manager of Roanoke's WBRA. "We want to be on the system."
This gives the broadcasters a "point of negotiation. . . . We understand their standpoint," said Shine. The bottom line is ensuring the consumers get what they want, she said.
From now until October, broadcasters and cable operators will negotiate. Lee said he would not rule out any suggestions from Shine for other forms of compensation. Money flows back and forth between the television station and the cable company for advertising. That could be an area of negotiation, he said.
For decades, cable operators were permitted to pick up programs sent out over the air by broadcasters and refeed them to their subscribers via cable without paying the broadcaster. This arrangement generally suited both parties, because the cable system gave broadcasters a wider audience for their shows and commercials, and cable operators had programming to sell.
But the broadcast industry, led by CBS, convinced Congress to include the "retransmission" option, arguing that the cable industry was airing something it hadn't paid for.
"We are a program supplier" just like cable channels like CNN, said James DeSchepper, general manager of WSLS.
"We're mostly asking that they carry us," he said of the 84 cable systems that already carry WSLS. But for the others, he said, "there are other ways to negotiate compensation that doesn't involve money," such as promotions.
CBS and NBC networks recently said they would demand payment from cable systems. However, affiliates are to enter their own negotiations with cable operators.
Some of the nation's largest cable companies - Tele-Communications Inc., Comcast Corp. and Continental Cablevision - said they would not pay cash to broadcasters. And some threatened to drop broadcasters who demanded money.
The law does not specify how cable companies must compensate broadcasters for retransmission rights; operators could offer noncash inducements, such as a guaranteed channel position or promotions for local stations.
Tele-Communications Inc., the nation's largest operator of cable systems, and Fox Inc. recently announced they will launch a new Fox cable channel available to TCI's 10 million subscribers. TCI will pay Fox 25 cents a subscriber for the all-new entertainment channel, which could be up and running by October.
Jim Corrin, general manager of Blacksburg Cable Co., said local Fox affiliate WJPR/WVFT had requested retransmission along with WSLS and WDBJ. WSET had opted for must carry. Negotiations will be conducted by his home office, Booth American Corp. of Detroit, he said.
Cable operators that choose to drop broadcasters would suffer backlash from public relations, local governments and customers, Corrin said. "I shudder to think about it."
Some operators will take a hard line, he said, but eventually it will come down to a mutual agreement that serves the customer.
by CNB