NBC revenue fell 11% to $1.55 billion in 4th quarter ended Dec. 31, but operating profit was up 10% to $476 million, parent GE reported. GE gave little explanation of changes, although it cited higher ratings for broadcast network, “tremendous ratings” for MSNBC during election period and 40% full-year profit growth for CNBC. For full year, NBC revenue was up 17% to $6.8 billion and operating profit up 14% to $1.7 billion.
NCTA struck back at Consumer Electronics Retailer Coalition (CERC) late Tues. in continuing battle between cable and CE industries over DTV set labels. In 11-page filing with FCC, NCTA called again for Commission to reconsider its 3 proposed “Digital Cable Ready” labels for DTV receivers and instead adopt revised, more descriptive labels favored by cable industry. Accusing CERC of making “an unfortunate knee-jerk reaction to NCTA’s attempt to offer a constructive and pro-consumer labeling proposal,” cable group argued that CERC’s concerns about cable’s labeling proposals were “misplaced” because NCTA “merely has proposed more informative labels for the categories of DTV sets for which the FCC adopted labels.” NCTA also contended that CERC “is mixing apples and oranges” by confusing “the cable industry’s obligations under the navigation devices provisions of the Communications Act with the use of the term ‘cable ready’ in this proceeding.” Finally, NCTA said CERC “misrepresents” findings of cable’s focus group research indicating that consumers “reject the ‘Digital Cable Ready’ labels as inadequate and confusing descriptors of the DTV sets.” Group said CERC, which questioned findings and legitimacy of study, “offers no evidence to the contrary.”
Universal Space Network and BAE Systems opened Western Australia remote ground station at Yathanrragga to support former’s subscriber base, which includes NASA’s Triana spacecraft mission. Station will be constructed and maintained by BAE Systems.
DirecTV is facing another class action lawsuit for alleged monopolistic practices that resulted in increase in price subscribers must pay for its products and services. Suit filed last Sept. in U.S. Dist. Court, L.A., alleged that DirecTV engaged in activities intended to stifle competition in violation of various federal and state antitrust laws. Suit said all DirecTV subscribers from March 1996 to Sept. 2000 had been damaged by DirecTV conduct and were entitled to damages. Best Buy, Circuit City, RadioShack and Thomson Consumer Electronics also were named in suit. Sears Roebuck also sued DirecTV claiming, among other things, that latter had canceled its contract after Sears didn’t stop selling EchoStar products and services.
Following months of anticipation, Intelsat finally begins 6- month quiet period today (Thurs.) before becoming private company July 18, Intelsat CEO Conny Kullman said at Washington Space Business lunch Wed. It’s final step in Intelsat privatization authorized by Orbit Bill (CD Aug 4 p2). Kullman said company would “complete all internal work” by May. Company must conduct IPO by 2002. Privatization of Intelsat has been one of major issues in satellite industry for years, with several companies, including PanAmSat filing numerous petitions at FCC protesting what many called “preferential treatment” of company (CD July 28 p11). Kullman called transition biggest step since 1964 founding.
FCC released 2000 biennial regulatory review Wed. that includes details on items that agency accepts for further review that were part of staff report released last fall. On wireless spectrum, review said agency accepted staff recommendation that spectrum caps that limited spectrum entity could hold in single market be considered. CTIA and several wireless carriers have been pressing agency to consider lifting spectrum cap on 45 MHz in all markets except rural areas, where cap is 55 MHz. Agency plans to consider notice of proposed rulemaking in “near future” that will consider “existing competitive conditions and technological developments that could affect the continued need for the cap.” Agency also accepted staff’s recommendation to consider excluding rural ILECs from requirement that independent (non-Bell) ILECs must offer long distance service through separate subsidiary. FCC said it would begin proceeding to seek comment on idea. In addition, it will ask whether it should consider waivers of that requirement for other independent ILECs that showed it created hardship for them. FCC Comr. Furchtgott-Roth said he was “heartened” by more detailed analysis in 2000 Biennial Review issued by agency Wed. Review includes staff report that analyzes regulations on “subpart-by-subpart” basis to determine whether they are needed, action that Furchtgott-Roth has championed in past. That level of detail offers “meaningful opportunity for debate about each section of our rules,” he said. He urged regulated companies to take active role in commenting on process that he said was “opportunity to keep our regulations consistent with marketplace and technological change.”
Hearst-Argyle TV will use Harris Corp. DTV transmitters under new agreement. Deal at start covers 17 stations, allowing them to begin DTV broadcasting this year, companies said. Hearst-Argyle owns or manages 26 stations.
CARLSBAD, Cal. -- Following end of potentially contentious fight over DTV standards (CD Jan 17 p3), NAB TV board approved financing to start public campaign to “educate consumers on the benefits of digital TV.” To get under way in spring, planning will begin Feb. 6 at joint meeting with co-sponsor MSTV, NAB announced at close of 4 days of board meetings here Wed. Cost of effort wasn’t disclosed, but broadcaster said “we've already spent hundreds of thousands” on engineering studies to determine that 8- VSB standard should be favored over COFDM.
AT&T passed on chance to petition FCC for permission to use company’s planned spinoff of Liberty Media Group to satisfy Commission’s MediaOne divestiture requirements. FCC’s Jan. 16 deadline for written petition came and went without word from AT&T, which wrestled with agency last month over how to meet merger divestiture conditions. AT&T spokesman said MSO hadn’t planned to file petition and preferred to “not elaborate” on its previous statements. FCC Cable Bureau spokeswoman also declined comment. In unexpectedly tough order Dec. 21, Commission told AT&T to carry out its stated commitment to shed its 25.5% stake in Time Warner Entertainment (TWE) or place it in irrevocable trust for sale by May 19 even though company said it preferred to meet merger conditions by spinning off its Liberty Media programming unit (CD Dec 26 p1). But FCC said AT&T still could petition agency to modify order by Jan. 16 by submitting written request “with an appropriate showing as to why such a modification would serve the public interest.” AT&T spokesman said company stood by its earlier statements in which it agreed that it had elected to divest TWE to meet Commission’s Dec. 15 election requirement but insisted that it also was proceeding with plans to spin off Liberty. Issue also is key to FCC’s recent approval of AOL’s takeover of Time Warner (TW). In accepting AOL-TW deal last week, both outgoing FCC Chmn. Kennard and Republican Comr. Powell, widely expected to succeed him, stressed importance of severing ownership links between AT&T and TW.
Minority ownership of commercial TV and radio stations increased 0.9% overall over last 2 years, but minorities’ share of TV market actually declined in 2000, NTIA said in report released by Commerce Secy. Norman Mineta Tues. “Unfortunately,” this was increase “that we must attribute mostly to an industrywide economic boom and an improved reporting methodology,” Mineta said, and “clearly there is reason for concern.” NTIA survey showed that consolidation in industry threatened survival of minority and single-station owners, he said.