NAB TOLD REGULAR TV PROGRAMMING WILL BE ON INTERNET IN 2 YEARS

Roberts said TV stations would seek avenues to offer interactive programming to homes, providing 2nd revenue stream. Post-Newsweek Stations CEO Alan Frank said even then “there'll be a lot of room for over-the-air broadcasting.” Hearst Argyle CEO David Barrett said there still would be audience for regularly scheduled events on free TV such as sports, news and special local events, comment with which Roberts agreed. “How well we do is totally defined by local news,” Barrett said. Frank said as major TV group, success would come because “we are part of the community so we reflect that community.”

Major problem in conversion to DTV is lack of “a unified plan” for how govt. could or should move forward. Frank said there was “starting to be some movement” toward such plan -- citing FCC Chmn. Powell’s proposal (CD April 5 p1) and 3 meetings with participants by House telecom leaders, with 4th scheduled this week. Paxson said conversion needed “a good shove from somebody.” Barrett said all parties to DTV conversion (including cable and set manufacturers) must be held accountable, but so far only TV stations have been given deadlines. “I'm encouraged by the chairman’s proposal,” he said. Franks and Paxson said mandatory DTV tuners in every TV set was necessary for conversion to digital to succeed.

With all uncertainty about free TV’s future, moderator Deborah Norville, host of Inside Edition, asked broadcasters how they planned for future. Paxson said “in my company, we've been able to anticipate change.” In his rollout on Pax TV Network of family programming (mostly reruns of off- network shows) in 1998, he said pundits were wrong in predicting failure. All research showed that audience was there for such programming, he said, and network was able “to find something no one else was doing.” Frank said too many management decisions were being made based on projections of Wall St. analysts and that could have “significant negative effect.” Hearst-Argyle takes “long-term view” in making management decisions, Barrett said. One of those he announced Tues. was purchase of it’s own satellite transponder “so we don’t have to rely on others.”

In following panel on broadcast ownership, Legg Mason analyst Blair Levin (former FCC chief of staff) cited many “obstacles” he said stood in way of Commission’s reaffirming media ownership restrictions recently remanded in 2 court decisions. “It will be very difficult” for agency to explain its reasons why rules are needed that court will accept, if it attempts to do so, he said. Big problem for Commission, Levin said, is coming up with what is meant by “diversity” in rules. On other side of issue, Kenneth Ferree, chief of FCC Media Bureau, said “it’s hard to say the rule is indefensible.” He said agency’s recently formed ownership working group was trying to come up with response to court’s remands and develop framework to find solution. Working group so far is focusing on research that will be needed to provide necessary data and decide who will conduct that research. On subject of other independent “voices” criterion FCC uses in given market ownership and duopoly decisions, LIN TV’s Gregory Schmidt complained that Commission refused to include 24-hour news channel.