[opendtv] Re: How Many Strikes Until They're Out?

  • From: "John Willkie" <johnwillkie@xxxxxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 3 Apr 2008 10:05:46 -0700

"statutory" is the cave-out for you.  I don't need to do cut and paste.
Before then, it was simply regulatory.  

Those who forget history are doomed to repeat it, and not know what happened
later.  And, you use a google books result (a promo).

Not I; I saw that syndex and Network Non-duplication announcements on cable,
starting in 1978.  They even cited an FCC rule number.

If you want to discuss this, okay.  If you want to find thin reeds to
support your wrong ideas, that is fine, too.  But, I will call it out.

Also, the 1972 rules were actually stayed for a number of years.  But, you
can't easily learn that from Google.

John Willkie, who actually read the FCC decisions AT THE TIME THEY WERE
ISSUED.

-----Mensaje original-----
De: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] En
nombre de Craig Birkmaier
Enviado el: Thursday, April 03, 2008 4:53 AM
Para: opendtv@xxxxxxxxxxxxx
Asunto: [opendtv] Re: How Many Strikes Until They're Out?

At 10:22 AM -0700 4/2/08, John Willkie wrote:
>Actually, since I am refreshing your 'memory' did you subsequently remember
>that network non-duplication and syndicated exclusivity did not come about
>(effectively) until the late 1970's?

No. Since you want to play memory games I decided to do a bit of research.

Google Books has a preview copy online of a book by James C. Goodale:

All about Cable

I cannot cut and paste passages, but you can read 
the pertinent stuff yourself John...

Let's begin with section 2.07: Retransmission of 
Distant Signals: The Compulsory License and 
Syndicated Exclusivity:

http://books.google.com/books?id=yBwpUiXyEFgC&pg=PP205&lpg=PP205&dq=network+
non+duplication+for+cable&source=web&ots=5bIGfRySmh&sig=Y6ow32ck44WpVAFRow4d
b80kSqg&hl=en#PPP195,M1

We begin by learning that there was no statutory 
prohibition on cable carriage of broadcast 
content until the 1992 cable act.

We then learn that in 1965 the FCC adopted rules 
that protected broadcasters from the importation 
by cable systems of signals that carried network 
or syndicated programs for which the broadcaster 
had purchased exclusive rights.We are told that 
these rules only applied to the use of FCC 
licensed microwave links to import the signals. 
The rules were revised several times until 1972 
when the FCC placed limits on the number of 
distant signals that could be imported.

So in essence, the Network non-duplication rules 
and syndicated programming exclusivity were in 
place by 1972. In 1976 Congress imposed a 
compulsory licensing process so that cable could 
carry copyrighted network and syndicated content 
WITHOUT negotiating license fees or obtaining 
consents. We then go through a long period where 
these rules are challenged, partially rescinded 
and then reinstated. The net effect is that 
stations have had the ability to protect their 
content from duplication since 1972.


>
>Marshall Herskowitz, the guy behind "Quarterlife" (and, with others, "My So
>Called Life" and "Thirtysomething" among other television programs) would
>beg to differ with you on what FinSyn had to do with.  I heard an interview
>with him a month or two back where he mentioned quite prominently that
>'everything changed' with HIS BUSINESS when FinSyn came into effect in
1994.
>But, I suspect you think you know more about the production/distribution
>business than does he.


The Fyn Syn rules were imposed by the FCC in 1970 
and remained in place until the FCC began to 
relax the rules in 1991. In 1993 they adopted an 
order that totally eliminated the rules in 1995.

From http://www.legalinterface.com/aba%20media%20concentration%20w-bkg.htm

The result is that In 1999, four years after the 
abolition of the FinSyn rules,  the following 
concentration in regards to network programming 
has taken place:
.       Eight of the top 10 primetime program 
suppliers are corporately linked to one of the 
six major networks.
.       All six of CBS's debuting series list CBS 
Prods. as a co-producer. Including its three new 
programs, 63% of the eye network's night schedule 
is generated in-house.
.       Nine of Fox's 20 primetime programs come from Twentieth Television.
.       Four news shows and six NBC Studios 
programs constitute 41% of the peacock's schedule.
.       ABC gets four of its primetime shows from 
ABC News. Another four come from sister firm the 
Walt Disney Co. Walt Disney Television will also 
provide ABC with seven telefilms during the 1999 
season.
.       The WB and UPN networks generate about 
one-fifth of their primetime schedules 
in-house[28]

There is no question that the elimination of 
these rules has allowed the six conglomerates to 
concentrate their power. But these rules apply 
only to network financial interests in the 
programming produced for their OTA networks and 
the syndication of these programs. It has NOTHING 
to do with cable networks per se', however, the 
networks do have greater financial participation 
in off-network programming that is migrated to 
cable networks.

Again, this has NOTHING to do with retransmission 
consent and the way it was used to rebuild the 
programming oligopoly that now exists across 
broadcast, cable and DBS.

>
>So, now that Time-Warner owns one tv station (WTBS) broadcast is a big part
>of their business, but it wasn't a big part of their business when they
>owned zero television stations?

Time Warner has gone through numerous mergers, acquisitions and
divestitures.

WTBS IS a broadcaster, but ONLY because this was 
the way that Ted Turner was able to bend the 
rules to create a national superstation (dittos 
for WGN Chicago). Broadcasting per se' is a tiny 
part of Time Warner's business. Time Inc. sold 
their TV station group a year or two ago.

The reason that TW is among the list of 
conglomerates is that they became the economic 
force that was able to build cable into a 
competitor with the broadcast networks. They 
still own a significant "footprint" of cable 
networks. It can be argued that the tactics of 
the cable industry, and  the companies that 
became Time Warner in particular, led to the 
successful bid by broadcasters to re-regulate the 
cable industry and to FINALLY gain the ability to 
negotiate carriage fees for broadcast signals 
that had previously been covered by the 
Compulsory License. The 1992 Cable Act gave 
broadcasters the power to develop cable 
properties with "preferred placement" on cable 
systems; this was achieved by threats to withhold 
broadcast network content. The subsequent deals 
gave broadcasters the opportunity to develop new 
non-broadcast networks, for which they received 
monthly subscriber fees. CBS elected to take 
monetary payments, rather than using the first 
round of ReTrans consent agreements to build 
cable properties - a mistake that CBS still 
regrets as it scrambles to catch up with the 
other conglomerates.

Time Warner did not use retrans consent to build 
their programming empires - Take a tour of their 
numerous operations in Atlanta. Only TBS is even 
remotely linked to broadcasting. Everything else 
was developed for cable.

But their cable systems were forced to  negotiate 
with broadcasters after the passage of the 1992 
Cable Act.

>  How about when they owned KGTV San Diego, WRGB, KERO Bakersfield, KMGH
>Denver and channe 6 in Indianapolis?  They were called Time, Inc. back
then,
>had no cable channels, owned scattered cable systems, and their TV arm was
>called Time-Life Stations.  They started in that field in 1956 or so, and
>got out in 1973, having sold all but WRGB station to McGraw-Hill.

This was one of the companies that was involved 
in the merger that created Time Warner. Time 
decided in 2006 to sell these stations and focus 
on print and the Internet.

>
>And, just to keep you on the straight and narrow, Warner Brothers didn't
own
>any TV station after 1956 or so.  Bet you can't tell me which station(s)
>they had an interest in back then.
>One of the reasons they gave for getting out the tv station business back
>then was that the 'new' cable rules prevented owning cable systems and
>broadcast stations in the same market.  The biggest market where they had
>both was -- San Diego.  Since cable was Greenfield, and TV not, they went
>for cable.  Now, a much bigger company, they own one television station,
and
>somehow "broadcast" is a big part of their business.

Let's get something straight here John. 
BROADCASTING is no longer a big part of ANY of 
the businesses operated by the media 
conglomerates. It accounts for only about 30% of 
all TV viewing today. They are moving in the 
direction of eliminating OTA broadcasting - CBS 
just announced significant lay-offs in its O&Os 
this week. NBC is selling more stations. ABC is 
migrating all sports programming to ESPN, as is 
Fox with their regional sports networks.

I am not complaining about the power that the 
conglomerates now have over broadcasting. That's 
a dying business. My entire purpose in all of 
this was to explain how the conglomerates used 
the NAB and their their clout with the 
politicians to reign in the cable industry and 
take control of the content that it delivers.

>
>I'm sure that's why they are resurrecting "The WB" as a streaming-only
>network showing reruns and a few new things, via a web site.

They are doing this because it makes good 
economic sense to migrate content to the 
Internet. In 5-10 years this is how most of their 
content will be consumed, however it will not be 
a streaming network that draws the audience. 
People will migrate to downloading the shows they 
like and watching them whenever they want. Other 
than for live sports and American idol, 
"Appointment TV" is going the way of the buggy 
whip.
>
>But, like Bert, I suspect you won't let facts get in the way of a good
>argument.


If there is one person on this list who plays 
loose with facts John, you're it. Bert just 
twists facts to his purpose, even when those 
facts undermine his arguments.

Regards
Craig
 
 
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