TV

Posted: Fri., Jun. 4, 1999

CBS panel eyes net-affil model

Confab ends on high note

LAS VEGAS -- Hoping to avoid a replay of the stations relations meltdowns that have plagued other nets recently, CBS and its affil board will establish a joint panel aimed at carving out a wide-ranging blueprint for a new net-affil biz model.

Agreement was announced Thursday as the 45th annual Eye affil confab ended on a largely harmonious note, with station reps upbeat about the health of CBS going into next season.

Interrupting the lovefest atmosphere of this year's convention briefly was CBS Corp. senior veep/D.C. guru Marty Franks, who, in a harshly worded sermon, chided affils for their refusal to join webs in lobbying the FCC to increase the limits of how many local stations networks can own.

"You may be able to sell the notion that greater network ownership of stations constitutes a threat to localism, or that we will force you to sell to us, but for the record, do any of you really believe that?" Franks said.

The exec said that by opposing a loosening of regs, stations are essentially inviting "the government to intervene further in our business because it suits your business interests. You can dress the argument up in fancy language, but don't kid a kidder."

Franks seemed particularly irked at CBS affils for opposing the lifting of caps when the Eye web has been friendly to station groups' efforts to seek local market duopolies in which one station group can own multiple outlets in a given market. He contrasted CBS' generally station-friendly policies with the recent "brilliant affiliate relations initiatives of ABC, NBC and Fox."

'Followship over leadership'

"You have chosen to join a coalition that punishes CBS for the sins of the other three," he said, accusing Eye affils of choosing "followship over leadership."

Franks said the division between webs and affils was hurting broadcasting's overall lobbying efforts in D.C. "As long as we are an industry divided, we will not be in control of our own destiny," he said.

Not surprisingly, affils greeted Franks' comments with lukewarm applause and seemed generally unmoved by his arguments.

Family disagreement

"Family members sometimes disagree," said LIN Broadcasting topper Gary Chapman, whose company owns several CBS affils. Chapman said station owners would be more willing to drop their opposition to easing the cap on station ownership if and when the FCC changes the rules on local station duopolies.

CBS and affils should actually sit down and talk about their differences on the issue, Cox Television prexy Andy Fischer said in a closed-door sesh, giving the stations' point of view on the ownership cap.

Franks accepted the idea, though no date has been set to begin a dialogue.

Soothing tensions

A conciliatory CBS Corp. prexy and CEO Mel Karmazin tried to soothe any possible tensions by insisting the Eye wanted to remain partners with stations.

"We're on the same side as you," Karmazin said, adding, "I don't think our winning makes you a loser."

Affils reflected that tone with almost universally upbeat versions of how the two-day confab played out.

Fischer praised Eye execs for using "this meeting for its true purpose, which is getting ... thousands of local sales execs excited about selling the value of CBS. Somewhere along the line other networks forgot that."

Affil board chairman Paul Karpowicz, veepee of LIN Broadcasting, said the subcommittee being formed to explore big-picture issues such as repurposing, program exclusivity, affil compensation and HDTV will "try and develop some ideas on a blueprint for how our relationship is going to look in the digital age."

Most CBS affil contracts still have three or four years left on them, but several major deals expire sooner, providing a further incentive for CBS to work out a compromise agreement on how it will interact with affils in the future.

During their private meeting with net execs, several affils focused their queries on CBS News issues, asking whether the net's new ayem show might launch earlier than Nov. 1 (unlikely because of construction demands) and what was being done to beef up "The CBS Evening News" ratings, which have slipped in recent months.

New look revealed

Elsewhere at the affil conference, CBS marketing execs unveiled a new fall promo campaign and on-air look for the Eye web that de-emphasizes the "Welcome Home" slogan. New interstitials and bumpers will guide viewers through each evening's program lineup, with CBS celebs introducing each night.

The CBS affil advisory board also voted to expand its ranks by adding three new at-large positions that will be filled by group owners. The move is designed to reflect the growing influence of large station groups on network-affil relations.


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