CNN announced broad personnel and operational changes Wed. to improve its newsgathering operations and streamline its global TV and Web services. Changes introduced by new senior management team are to: (1) Integrate Newsgathering Div., with journalists providing comprehensive reporting for all of CNN’s TV, radio, Web sites and ancillary services such as wireless devices and private networks. (2) Integrate TV channels and their respective Web sites such as CNN.com, CNN/SI, CNNfn, CNN International and CNN en Espanol under single management structure. (3) Introduce new technology to improve speed and efficiency of field reporting, editing and distribution. As result of changes, company will cut work force just under 10% (400 members of News Group staff) in coming weeks, company said; 1/3 of those positions are current CNN Interactive staff and another 1/3 from programming. After personnel and operational changes, CNN will remain among world’s largest news organizations with 3,900 employees, 1,000 of them devoted to newsgathering, company said. Among other initiatives announced: (1) Setting up a Newgathering “superdesk” in Atlanta to enhance cross-service/platform communication and allow for faster decision-making. (2) Combining domestic and international operations of Newsource, CNN’s affiliate news service.
Word is that Fox TV Network will tell its affiliates at meeting this weekend in Las Vegas that it’s dropping annual spring convention that has been held since network began in 1981. Session will be held just before start of ALTV-NATPE convention and fewer than half of affiliates are expected to attend. Many of what are now Fox affiliates were prominent in forming association for independent stations before Fox network started and have remained members. Financial factors reportedly are reason for dropping spring meeting, which in 2000 was held in Scottsdale, Ariz.
NorthPoint Communications filed for Chapter 11 protection in U.S. Bankruptcy Court, San Francisco, and said it planned to sell “substantially all” of its business and assets. NorthPoint CEO Liz Fetter said company would look for “financially sound strategic partner who is interested in our network, our skilled and dedicated employees and our attractive customer base.” Spokesman said NorthPoint would to go forward with suit it filed against Verizon for pulling out of planned merger (CD Dec 11 p6). Fetter said that when Verizon “unexpectedly pulled out of the merger… it created a funding shortfall” for NorthPoint. Company said it secured commitment for up to $38 million of debtor-in- possession financing from its existing lenders to continue day-to- day operations.
Lucent Technologies and Time Warner announced $100 million fiber network system deal for former to supply TW with its newest system. Time Warner Telecom will deploy Lucent’s WaveStar OLS 1.6T, DWDM system, with initial capacity of 800 Gbps.
James Packer, ex-Disney, appointed exec. vp-N. America TV sales, MGM Worldwide TV Distribution… Changes at CNN: Ken Jautz, n-tv Germany, named exec. vp-gen. mgr.-CNNfn after merger of those units; Teya Ryan, exec. vp, domestic networks, CNN News Group, appointed gen. mgr-exec. vp, CNN Headline News… Changes at Starpower: Don Mathison, ex-Media General Cable, named gen. mgr.; Andrew Nigolian, ex-Time Warner, appointed division vp- Adelphia… Michael Yorick, ex-A&E TV Networks, moves to vp- emerging businesses, USA Cable… Wis. PSC Exec. Asst. Robert Garvin appointed to fill Wis. PSC seat of John Farrow, who’s retiring when his term expires in March; Ave Bie reappointed Wis. PSC chmn… Elected to Satellite Industry Assn. board: Larry Atlas, vp-govt. relations, Loral Space & Communications, as chmn.; Peter Hadinger, dir.-telecom strategy, TRW, vice chmn.; Jeffrey Trauberman, dir.-information and communications systems, Boeing, treas.; and Kalpak Gude, vp-govt and regulatory affairs, PanAmSat, Suzanne Hutchings, regulatory counsel, Teledesic, and Gerald Musarra, vp-govt and regulatory affairs, Lockheed Martin, all as exec. committee representatives… Eugene DiDonato, ex- Peritus Software Services, named vp-gen. counsel, Lightbridge.
Paxson closed on purchase of 51% of KPPX (Ch. 51, Pax) Tolleson, Ariz. (Phoenix market) from Hector Salvatierra, broker Kalil reported. Paxson, which earlier had acquired 49% of station, paid $6.6 million for rest.
Charter Communications said it began offering Wink Communications’ elementary interactive TV service in S. Fla. Service is available free to Charter digital cable subscribers. With rollout, Wink said it’s available to more than 500,000 cable and satellite homes across U.S., including in more than 20 Charter markets.
Internet telephony provider IP Services Inc. (IPS) said it would petition Colo. PUC for guidance on access charges in light of ruling last week by Colo. Dist. Court Judge Michael Mullins in Denver. State court judge held that IPS was liable for intrastate access charges whenever it used public switched telephone network of Qwest or other telephone carriers for call completion. IPS Pres. Martin McDermott said Colo. PUC specifically exempted Internet telephony companies from paying intrastate access charges. He said ruling could force his company to pay at least $1 million in damages to Qwest, which brought lawsuit in state court seeking access charges. McDermott said state court’s ruling was so broad as to make any alternative carrier, regardless of technology used, liable for payment of access charges. Judicial ruling (CD Jan 17 p9) was state action, not federal.
Eight Chris-Craft TV stations will remain UPN affiliates under new agreement announced this week. Stations, which are being bought by News Corp., had been considered possible candidates for switch to Fox network. Deal runs through 2001-2002 TV season. Terms weren’t disclosed.
FCC added Brasilsat A2 satellite to Permitted Space Station List at 63 degrees W orbital location. Commission said as result of ruling, routine earth stations would be able to communicate with Brasilsat, which it said should stimulate competition in U.S.