THE JOURNAL OF THE CAUCUS: ARCHIVE
 by Charles Fries
How Are Independent Producers Impacted By Recent Mergers And
The Formation Of New Cable Networks, Or Who Owns What Now?
 The "Information Superhighway"
is aptly named. Since pre-Socratic time people have known that information is
power. The purpose of what follows is to empower the reader with a view of the
explosively expanding cable markets for our principal product Original
Programming be it Series, Long Form, Docudrama, Reality Programs or Talk Shows,
Music Video or Rock and Classical Concerts.
Obviously many of the new channels will
rely at first on re-runs and film libraries, but the maw will soon digest what's
available, and more and more original programming will be needed. Read on to see
where the market is headed.
Cable Industry Status
There are now more than seventy cable
networks available on a national level. These include a record setting nine
launches in the first half of 1994, with another half-dozen set to kick in over
the next year. On the horizon is an equal number of proposed and announced
networks, many with backing from top cable operators, film studios and
communication companies, plus countless others being floated but not yet
officially announced.
| New Cable Networks Launched in 1994 |
(Corresponding Parent Company) |
| "Americana TV Network" |
(Independent) |
| "Cable Health Club" |
(Intl. Family Ent.) |
| "Spice 2" |
(Graff PPV) |
| "Starz!" |
(Encore) |
| "Turner Classic Movies" |
(Turner Broadcasting) |
| "Q2" |
(QVC) |
| "America's Talking" |
(NBC) |
| "Television Food Network" |
(Providence Journal Co.) |
| "fx" |
(Fox Inc.) |
Cable Networks Set to Launch
Mid 1994 - End 1995 |
|
| "BET on Jazz" |
(BET) |
| "Encore Multiplex" |
(Encore) |
| "Independent Film Channel" |
(Bravo/Rainbow Programming) |
| "Home & Garden Network" |
(Scripps Howard) |
| "Romance Classics" |
(AMC/Rainbow Programming) |
| "History Channel" |
(A&E) |
Except for the most established (ESPN,
USA Network, Lifetime), cable networks in general, and new cable networks
specifically, face a very tough marketplace, but one that is set to explode in
the next three-to-five years. Holding back the marketplace is a number of
factors -- the two most prominent being re-regulation and limited channel
capacity.
Rate re-regulation effectively changed
the playing field -- no longer did cable operators have an incentive to pick up
new basic cable networks as they were prevented from passing on the associated
costs. Further rate re-regulation tightened up the money supply that operators
needed to improve their systems and increase channel capacity.
Channel capacity on most systems is near
full with those built for 20-30-40 and more channels filled between carrying the
local broadcast stations, established national cable networks, local sports
networks, local cable system channels and preview channels. In conjunction with
this, system operators face must-carry regulations, whereby they are obligated
to carry all broadcast signals including the secondary broadcast outlets of home
shopping, foreign language, and religious stations, and retransmission consent,
which has led to broadcast supported cable ventures like "America Is
Talking," "fx," and "Television Food Network." In order
to make room for these stations and networks, operators have pushed their
capacity to their limits or bumped existing cable networks off the system.
Why enter this tight marketplace? In
order to create a beachhead on the coming information superhighway that is
fueled by the near limitless capacity of digital compression, with its
corresponding interactive, addressable, and switchable service ability. But this
is all in the near future, two-to-five-to-ten years down the road, and not
today.
Program Marketplace
Historically there has been an
association, in terms of ownership and financial support, whereby cable networks
have benefited by integration with cable operators and communication companies.
Of the seventy networks now offered, only ten-to-fifteen do not benefit from
this relationship and a large number of those are religious and foreign language
networks. Of the seventy proposed networks offered at the May 1994 NCTA
Convention, nearly half came from established players in the cable industry,
with many of the others looking to establish relationships. Following is a list
of the major players and the existing and proposed networks they are associated
with.
MSO's with Programming Interests and Diversified Media Companies
with MSO's
TCI/Liberty
(Liberty Media is TCI's programming arm) |
| Turner Broadcasting System |
(see listing) |
| Black Entertainment Television |
(see listing) |
| Discovery Networks |
("Discovery" and "Learning Channel") |
| Encore |
("Encore," "Starz!," "Encore Thematic
Multiplex") |
| International Family Entertainment |
(see listing) |
| Home Shopping Network |
("HSN 1," "HSN 2," "TV Shopping Mall") |
| QVC |
("QVC, "Q2") |
| Regional Sports Networks |
("Newsport," "Prime Sports," etc.) |
| Cable Networks |
("Box," "Court TV," "E! Entertainment
TV," "C-SPAN," "VISN," "Request") |
| Proposed Networks |
("Classic Sports Network," "SEGA Channel" with
SEGA and Time Warner) |
In the works for TCI are 1) reports of
Viacom selling their Madison Square Garden Unit (New York Knicks, New York
Rangers, TV and Cable TV rights to New York Yankees, and the Madison Square
Garden Network) to Liberty Media and merging Showtime with Encore; and 2)
reports of TCI/Liberty developing twenty or more special interest channels based
upon popular magazines.
| Time Warner |
| Turner Broadcasting System |
(see listing) |
| Black Entertainment Television |
(see listing) |
| Cable Networks |
("HBO," "Cinemax," "Comedy Central,"
"E! Entertainment TV," "Viewer's Choice") |
| Proposed Networks: |
("Catalog 1" (with Spiegel), "SEGA Channel" (with
SEGA and TCI) |
| Viacom |
| MTV Networks |
("MTV," "VH1," "Nickelodeon," "Nick
at Nite") |
| Showtime |
("Showtime," "Movie Channel," "Flix,"
proposed Showtime multiplex of 5 channels) |
| USA Networks |
("USA Network,"Sci-Fi Channel," "Comedy
Central") |
| Regional Sports Networks |
including "Madison Square Garden" |
Besides the talks with TCI, Viacom put
on hold their plans to spin- "Nick at Nite" off offinto a stand-alone
network. Cable re-regulation was cited as a key factor.
| Cablevision Systems |
| Rainbow Programming |
(NBC interest in Rainbow Programming) |
| Cable Networks |
("American Movie Classics," "Bravo," "Court
TV,") |
| Regional Sports Networks |
("Newsport," "SportsChannel," etc.) |
| Proposed Networks |
("Independent Film Channel," "Romance Classics,"
"Singles Network," "Recovery Network/Wellness
Channel," "Golf Channel," "TV Macy's") |
| Comcast |
| QVC |
("QVC," "Q2") |
| Turner Broadcasting System |
(see listing) |
| Cable Networks |
("E! Entertainment TV," "Golf Channel,"
"Viewer's Choice") |
| Jones International |
| Cable Network |
("Mind Extension University") |
| Proposed Networks |
( "Computer Network," "Product Info Network") |
| Channels with multiple MSO ownership or financial
interest |
| Cable Networks |
("C-SPAN," "C-SPAN 2," "Court TV,"
"E! Entertainment TV," "Golf Channel," "Home
& Garden Network," (with Scripps Howard), "TV Food
Network" (with Providence Journal), "VISN: Faith & Values
Channel") |
| Diversified Media Companies
without MSO's |
| ABC & Hearst |
(Co-own networks) |
| Cable Networks |
("A&E," "ESPN," "ESPN 2,"
"Lifetime") |
| Proposed Networks |
("History channel") |
| NBC |
| Rainbow Programming |
("AMC," "Bravo," "Court TV," "SportsChannel"
and proposed networks) |
| CNBC |
("CNBC," "America's Talking") |
| Turner Broadcasting |
(Ted Turner, TCI, Time Warner) |
| Cable Networks ("TBS," "TNT,"
"Turner Classic Movies," "Cartoon Network,"
"CNN," "Headline News," "CNN
International") |
| Own New Line, Castle Rock |
| Black Entertainment TV |
(Robert Johnson, TCI, Time Warner, Great America) |
| Cable Networks |
("BET," "Action Pay-Per-View") |
| Proposed Networks |
("BET on Jazz," "BET Shopping") |
| International Family Entertainment |
(Pat Robertson, TCI) |
| Cable Networks |
("Family Channel," "Cable Health Club") |
| Proposed Networks |
>("Cowboy Channel," "Game Channel") |
| Own MTM, Gaylord |
| Cable Networks |
("Country Music TV," "TNN Nashville Network,"
"Z Music") |
All of these systems will provide
programming opportunities for the Creative Community around the world. Remember
also, that re-runs of old programs create the streams of revenue that support
new production. That's always good news!
The following reference books provide
valuable information:
- Cable Television Developments - Free - Published three times per year by
the Research and Policy Analysis Department of the National Cable Television
Association. Phone: 202/775-3680 Address: 1724 Massachusetts Ave. NW,
Washington DC 20036-1969.
- Producers' Sourcebook: A Guide To Program Buyers - $99 -Published by The
National Academy of Cable Programming. Phone: 202/775-3611 Address: 1724
Massachusetts Ave. NW, Washington DC 20036-1969
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