NEW FCC WILL HAVE ‘GREATER FEEL FOR THE LAW’—FURCHTGOTT-ROTH

LAS VEGAS -- Broadcasters and other regulated industries can expect from new FCC “a greater feel for the law… and a more humble approach,” FCC Comr. Furchtgott-Roth said here. Commission will regulate “only what the law requires… and it will be a greater day at the FCC,” he told ALTV panel Mon. afternoon. Michael Powell, who had been FCC chairman for just a few hours, deferred first question from ALTV’s David Donovan -- on what changes broadcasters could expect under Bush Administration -- to his Republican colleague, after which Powell said “my final sincere hope” is that agency would become “more efficient and responsive” to needs of those it regulated: “The greatest enemy of regulation is… uncertainty.” After panel, longtime Washington lawyer told us: “We're in for a sea change of deregulation if you follow their comments to their logical conclusion.”

Powell said FCC involvement in antitrust matters “simply duplicates efforts” of FTC and Justice Dept. (Powell worked at Justice before moving to FCC in 1997). Sometimes there appears to be problem in mergers when there really isn’t, he said. But, he said, “I also have to criticize the industry slightly” on such issues. FCC should stay strictly out of content of programming, he said, even though in some instances it might have regulatory authority. He said he disagrees with “3 of 5 commissioners” making content decisions. Powell also disagreed with Commission’s “8-independent voices” rule on duopolies: “Voice tests… It’s not something the FCC should be counting… I'm clearly a skeptic about the government’s role in content regulation.” He said he placed great value on First Amendment, and in broadcasting rights “have been inhumanely tread upon.” Asked about restrictions broadcasters might voluntarily place on themselves, Powell said: “I don’t know that there’s anything voluntary in a regulatee- regulator relationship.” Furchtgott-Roth said no industry “has been punished more and harmed more by overregulation” than broadcasting.

Powell said he expected “a warm and working relationship” would evolve with Congress, which “appreciates [being] kept abreast of what’s going on” and doesn’t like to be “surprised” by agency actions. Furchtgott-Roth, former chief economist of House Commerce Committee, said “it goes without saying” that FCC relationship with Congress under Chmn. Kennard had been “strained” and there was “reasonable expectation” it would improve under Powell. On DTV, Powell said there were “a phenomenal number of variables, all of which must come together” -- and most were under broadcasters’ control. But, he said, “current time frame is extraordinarily optimistic to achieve” -- position with which Furchtgott-Roth agreed, with both predicting extensions of current deadlines. Said Powell: “I am not a fan of the idea that we can somehow micromanage” transition to digital and FCC’s order “to get off by date certain” has caused confusion on part of public. Furchtgott-Roth said “it’s difficult to see how broadcasters in small and medium markets can rationally make [required] investments in digital broadcasting… It seems suicidal at times. I have no doubt the [analog] spectrum will not be cleared by 2006.”

Furchtgott-Roth was critical of Kennard FCC, saying it would “go off and do things that had nothing to do with the [Communications] Act,” and for making decisions not based on past policy. No questions were asked of commissioners from floor, and many in audience said they were surprised that 35% station ownership cap wasn’t brought up. “If I had known [ALTV’s] Donovan wasn’t going to ask it, I would have, but I didn’t have an opportunity,” broadcaster said.

In closing ALTV panel (with NATPE starting next day), 7 program syndicators saw little value for them in huge NATPE gathering -- although only one said his company probably wouldn’t continue to exhibit. “There’s a good chance that we won’t be back next year,” said Robert Raleigh of Carsey-Werner Distribution. All 7 agreed that original purpose of NATPE had changed dramatically and that it no longer was venue for program sales. But, said Steve Mosko of Columbia Tri-Star TV: “This has always been very important for us… We'll be back.” All said major problem was cost (up to $3 million for major exhibitors), with Steven Rosenberg of Studios USA saying less expensive economic setup was needed, “but we'll be coming back for the foreseeable future.”

Syndicators and program sales aren’t reason for NATPE anymore, “so I ask myself why do I spend $3 million” to be here and exhibit, asked John Nogawski of Paramount. He said station executives who buy don’t attend anymore -- independent survey showed only 37% of potential U.S. customers for syndicators were in Las Vegas this week. Said Dick Robertson of Warner Bros.: “As a selling convention, it has little or no value… It’s a line in our budget that has long outlived its usefulness… Anyone who hasn’t cleared a show before coming here should be fired.” Richard Askin of Tribune Entertainment said his company was seeking to cut costs “dramatically” but Tribune would return to NATPE in 2002. Programmers were unanimous in responding to question by moderator Kevin O'Brien of KTVU Oakland: No, they wouldn’t support standalone ALTV if it weren’t held adjacent to NATPE. Tack Nail

NATPE-ALTV Notebook

As NATPE went into its formal sessions Tues., it was clear that large TV station groups hade cut back on number of people they sent -- and “you almost never see a program director,” group head told us. He said his program dirs. were told not to come and decision was left up to individual gen. mgrs. with 6 of some 2 dozen electing to attend. Another group head said he came to Las Vegas for only one day -- to attend affiliates convention -- and that his gen. mgrs. weren’t at NATPE. Even networks have cut back -- CBS had no meeting for its affiliates, NBC only for affiliates’ board. Fox affiliates, which at their convention last June in Ariz. asked network to cancel 2-hour Fox Kids afternoon block, were told by network that block would be moved up hour to 2 p.m., leaving 4-5 p.m. time slot (which has significantly more viewers than 2-3 p.m.) for syndicated programming. Fox said it put on hold plans to develop local Internet portals in conjunction with affiliates. Closed meeting was said to be very upbeat, as opposed to session in Ariz., with Fox making large fall gains in prime- time viewers. Meanwhile, NBC told affiliates’ board that it planned to air Sat. Night Live on West Coast in prime time following XFL football games starting Feb. 11 and that most affiliates had agreed to go along. Affiliates will have 24 thirty-second spots to sell in each game. Also at Las Vegas meeting, affiliates agreed to become 50-50 owner with network of NBC News Channel, based in Charlotte, which provides 24-hour news service for stations.