home *** CD-ROM | disk | FTP | other *** search
- <text id=93TT2229>
- <title>
- Sep. 13, 1993: 57 Channels and Nothin' On
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1993
- Sep. 13, 1993 Leap Of Faith
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- SPECTATOR, Page 83
- 57 Channels and Nothin' On
- </hdr>
- <body>
- <p>The Networks' New Cable Services: Too Much, Too Late
- </p>
- <p>By Kurt Andersen
- </p>
- <p> Children play games of musical chairs. Teenagers play games
- of chicken. And adults make jury-rigged deals to launch expensive,
- redundant cable-TV channels. What else is one to make of the
- panic and quien-es-mas-macho giddiness variously gripping all
- of television's big boys right now? It's just the latest chapter
- in the ongoing struggle between the broadcasters--NBC, ABC,
- Fox, CBS, their hundreds of affiliate stations--and the cable-TV
- operators, but this time the frenzy is particularly intense
- and farcical, the ironies especially rich, the broadcasters
- wussier and the cable industry more bullying than usual.
- </p>
- <p> Cable-TV operators are the robber barons of this end of the
- century, having built businesses by tuning in local broadcasters'
- signals, then sending all those programs out along their wires.
- That's right: what they grab for free, they sell, in bulk, to
- you. A year ago, after fervid lobbying by the broadcast networks,
- Congress passed a law obliging the cable operators to start
- compensating the broadcasters--or drop the networks from the
- cable menus.
- </p>
- <p> Thus began the game of chicken that has now reached its anxious
- finale. Congress set a deadline of next month for the deals
- to be worked out but, crucially, didn't prescribe any form of
- compensation. While the broadcasters wanted cash, the cable
- companies, like squatters told to pay rent after years of living
- for free, refused, insisting on barter deals. The networks'
- negotiating threat has been that if the cable companies didn't
- pay, and couldn't show Saturday Night Live or 60 Minutes anymore,
- their customers would rebel. The cables' negotiating threat
- has been that if they stopped putting SNL and 60 Minutes on
- cable, the networks'audiences and revenues would instantly shrivel.
- </p>
- <p> In quick succession over the past few months, Fox, then ABC,
- then NBC and finally CBS gave in to the hard-line, no-cash bargaining
- position of the big cable companies. And all four chose the
- same face-saving, if-you-can't-beat-'em-join-'em terms of surrender:
- each TV network will start its own cable channel, which the
- cable operators will carry. We'll let you keep stealing our
- popular big-budget programs, the networks are saying, as long
- as we can produce some iffy new programming that you'll show
- and actually pay us for, pretty please.
- </p>
- <p> Of course, the networks now have no choice but to sound chipper
- about their not utterly voluntary expansions into cable programming.
- ABC, which owns the successful cable sports channel ESPN, seems
- to have the most coherent idea: yet another sports channel,
- ESPN2, which is to start next month with a more gonzo sensibility
- and a younger, duuude-skewing audience than the original channel.
- The people at Fox have been talking about launching a cable
- channel practically since chairman Rupert Murdoch was an Australian,
- and last week, under the gun, they announced it: FX, with a
- very cool logo, is to go on the air next March with a vague,
- general-entertainment mandate and a lot of live emcees who will--this is the New Age, 21st century part--read viewers' faxed
- messages on the air. Like ESPN with ESPN2, NBC will concoct
- a quasi-clone of its existing cable channel CNBC; last week
- the network named the amusingly ferocious Republican media genius
- Roger Ailes both to run CNBC and to create a new all-talk channel,
- to be called, unfortunately, America's Talking.
- </p>
- <p> Poor CBS, the network that led the fight to get the new cable-compensation
- law passed, is still scrambling for its place in the new order.
- According to sources familiar with the network's negotiations,
- what had seemed two weeks ago a done deal--CBS wouldlaunch
- a cable public affairs channel, a highly unnecessary crossbreed
- of CNN and C-SPAN--seemed indanger of falling apart as TCI,
- the country's biggest cable operator, was playing even harder
- ball than usual.
- </p>
- <p> Even if CBS and the rest of the networks all get seats in this
- musical-chairs game, their chairs may collapse. Basic cable
- channels launched after the early '80s golden age are by no
- means sure things. Comedy Central loses many millions of dollars
- a year, while CNBC is just breaking even. Each of these new
- channels could easily require an investment of $100 million
- or more.
- </p>
- <p> "This is an industry in which weird stuff happens," says Paine
- Webber analyst Alan Gottesman. Weirdness is fine. There are
- plenty of goofy-sounding new cable channels in the works--a channel devoted entirely to food, another devoted entirely
- to golf--but at least behind those are single-minded individuals
- pursuing their dreams of having more shows about pesto and four-irons
- on TV. The broadcast networks' proposed channels, to the contrary,
- are not being launched mainly out of Ted Turnerian visionary
- determination, but defensively, hastily, by default.
- </p>
-
- </body>
- </article>
- </text>
-
-