Fast Track
By Staff -- Broadcasting & Cable, 6/11/2006 8:00:00 PM
Items:
Telcos Score Big on House Franchising BillHubbard Launches Network
Cartoon Makes Summer Splash
Dozier Returns To U.S. for Treatment
Tribune Sticks to $2B Buyback Plan
Grogin Upped at Fox
Hubbard Launches Network
Quick Turn for 'Anatomy'
Telcos Score Big on House Franchising BillHubbard Launches Network
Senate prepares to weigh in Reelz will cover the A to Z of movies
The House of Representatives passed a bill last week that would ease telcos' entry into the TV business by establishing a nationwide franchising system.
The bill, which could give more oversight to the FCC, is far less restrictive than current rules governing cable operators, which must seek approval from local governments. If the bill becomes law, all video players could eventually seek a national franchise.
The bill, passed by a vote of 321-101—including a majority of both Republicans (215-8) and Democrats (106-92)—made good on a promise by House Energy & Commerce Committee Chairman Joe Barton (R-Texas) that video franchise would pass in the House.
In a big victory for the phone companies, a strong network-neutrality amendment introduced by Sen. Ed Markey (D-Mass.) was defeated 269-152, with all but 11 Republicans voting against and 58 Democrats joining them.
A vast majority—353-58—opted for an amendment by Lamar Smith (R-Texas), which says simply that granting FCC authority to adjudicate network-neutrality complaints does not affect applicable antitrust laws.
Two-thirds of Democrats voted for the amendment, as well as all but one Republican. One disappointed Democrat suggested that voting for it was a way to appear to have supported net neutrality without having to do so.
Amendments adopted also provide a means to resolve franchise-fee disputes; give localities more muscle in consumer-protection complaints; boost to $750,000 per day the penalty for denial of access to service because of income (it had been $500,000); and confirm the FCC's ability to add cable phone service (VoIP) to those who must pay into a fund (the Universal Service Fund) to help underwrite communications services for rural and underserved areas.
Barton also amended the bill to clarify what constitutes a franchise area and to say that franchisees must comply with existing cable regulations, save those excepted in the new bill.
The Senate plans to hold a hearing June 13 and a markup June 20 on its version. Senate Commerce Committee Chairman Ted Stevens (R-Alaska) has said he may amend his latest draft after seeing the House bill. Congress has until the end of July to get a bill to President Bush, although it could pass in lame-duck session.
Cartoon Makes Summer Splash
For the first time, Cartoon Network will run primetime premieres of original series six nights a week this summer. Beginning June 12, Cartoon will debut an episode of one of its homegrown series at 7 p.m. Monday through Saturday and fill nearly all primetime hours with originals, rather than the library content previously programmed.
At 7 p.m., Cartoon will debut episodes of original series such as Camp Lazlo; Ed, Edd n Eddy and Squirrel Boy, which joins in July. The rest of prime will feature reruns of Cartoon originals, except for 9:30 p.m. episodes of Xiaolin Showdown, a series that ran on Kids WB.
Until 1999, the Turner-owned network programmed about 99% of prime with library content from the Time Warner Animation Library: classics including Tom and Jerry and Scooby-Doo. To promote its summer shows, it's launching a multimillion-dollar campaign, its biggest ever, say executives, devoted to the popular characters in its original.—Anne Becker
Dozier Returns To U.S. for Treatment
CBS correspondent Kimberly Dozier, who was critically injured on Memorial Day in a roadside attack in Iraq, returned to the U.S. last week for more treatment.
Dozier sustained severe head and leg injuries in the attack that also killed two CBS News crew members, soundman James Brolan and cameraman Paul Douglas. She will be treated at Bethesda Naval Medical Center in Maryland, where ABC News anchor Bob Woodruff and cameraman Doug Vogt were treated.—Allison Romano
Tribune Sticks to $2B Buyback Plan
Amid board turmoil and speculation that it will spin off its TV stations, Tribune Co. vowed to proceed with a planned $2 billion stock buyback.
The plan—which accounts for a massive 25% of the company's shares—was thrown into doubt after the company disclosed that it is opposed by the Chandler family, which sold the Times Mirror Co. to Tribune in 2000 in exchange for stock in the company.
The Wall Street Journal reports that the three directors appointed by Chandler Trust want Tribune to spin off or sell its TV-station division, which contributes around 27% of the company's $5.5 billion in revenues.
Tribune said in a statement that the plan was “approved by a clear majority of its board of directors as being in the best interests of all shareholders.” The buyback is scheduled for June 26.—John M. Higgins
Grogin Upped at Fox
Fox Broadcasting's Scott Grogin has been promoted from VP to senior VP, corporate communications. He continues to oversee business and tactical communications strategies and serve as primary liaison to trade, financial and business media.—Ben Grossman
Hubbard Launches Network
After seven years of gestation, Hubbard Broadcasting is finally getting a startup cable network on-air that will focus on the movie world.
Reelz Channel (previously dubbed Moviewatch) is slated to launch in September with an enormous subscriber base of 26 million homes. Most cable networks start with fewer than 10 million homes and spend a few years trying to build their base and struggling to lure advertisers.
But Reelz could come out of the gate already at the level considered large enough to attract attention from some advertisers.
Reelz aims to cover movie-related subjects and include actors, directors, behind-the-scenes looks at new and older pictures, and reviews. It will be less overtly celebrity-oriented than E! and less arty than IFC.
Stanley E. Hubbard, son of Hubbard Broadcasting founder Stanley H. Hubbard, has been working on the channel for years, hiring former CBS and USA Network executive Rob Perth as president back in 1999.
Reelz secured deals with DirecTV and Insight Communications in 2003, but Hubbard says that he didn't want to launch the channel until he secured broad distribution.
“Where a lot of these new networks get into trouble is, they launch before they have critical mass,” Hubbard says. “We've held on because the idea is right; the industry is ready for it.”
Reelz will be slotted on digital tiers and will be almost entirely dependent on advertising, with cable operators paying small or no license fees.
Quick Turn for 'Anatomy'
Buena Vista Television (BVT) was silent last week, but cable execs say it has added a repurposing window to Grey's Anatomy that, starting in January, will allow the Touchstone hit drama to run on cable a few days after its ABC run.
Bids for the repurposing and off-net rights for Anatomy closed Friday; BVT is said to have been seeking $2 million per episode under an all-cash, four-year licensing deal—with no cap on the number of seasons.
The syndication deal would start in 2009, with the repurposed episodes obviously airing sooner than that.
Some in cable think the final episodic price will be closer to $700,000, while others estimate that it could end up at more than $1 million.
BVT's Desperate Housewives recently went to Lifetime for a 2008 start at $500,000 per episode. BVT initially sought $1.2 million for the Marc Cherry hit without a cable repurposing window, which was added later.
The Disney syndicator is looking to target Anatomy at Turner networks or USA, ABC Family and, perhaps, Oxygen; it has also approached cable buyers about acquiring off-network episodes of cancelled ABC sitcom Hope & Faith.—Jim Benson
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