enters into marketplace detemination of the value of the product and the mie of advertising. The following material provided by a major syndicator and sp plier of network programming, contains pertinent information about the matters. (1) Definition Network Programming (Commercial) Network programming is television programming broadcast on one of the three commercial U.S. television networks on a national inter-connected basis. Ma? contracts between program suppliers and the three networks carry an excitat,'} clause granting the network the exclusive right to broadcast the program 2014 for a stated period of time. This exclusivity commonly prohibits the supper fræ licensing the programs to the other television networks or to any television, ata tions or CATV systems in the exclusivity area, which is usually the U S., itwiter ritories and possessions, and English-language Puerto Rico. There are oevak ta minor variations among the networks as to the exclusivity area (eg, to include Bermuda or Tijuana, Mexico). (2) Types of Programming (A) Prime Time-(7:00 p.m. to 11:00 p.m., except Central and Mountain time zones : 6:00 p.m. to 10:00 p.m.) In prime time the most common types of programming are half-hour and one hour series. In addition, the networks program theatrical feature films made fr television feature films, entertainment specials, news and some public affairs doeumentaries and specials and some sports events in prime time. (B) Day-time Monday-Friday Programming.-The great majority of program ming in this time period on the networks consist of game shows, quiz shows, tak shows and soap operas, (C) Saturday Morning Programming.—Most programming on Saturday morn ing on the networks is children's programming, a considerable portion of which is in animation. (D) Late Evening.—Each of the three networks takes a different approach to late evening programming (post-prime time). One network programs talk shows, another programs feature films and the third programs a mixture of various types of programming ranging from variety specials to dramatic shows produced especially for that time period. Most of the programming referred to in (A) through (D) above (except for sports, news and public affairs) is supplied to the networks by outside producers and suppliers. In addition, the networks themselves produce and broad-ast news and public affairs programming and additional sports programming at vari times during the week, with special emphasis on news and public events and sports on Saturday and Sunday afternoon as well as early evening news shows during each weekday. (3) The program suppliers As indicated above, most of the entertainment programming broadcast by the three national commercial networks are supplied by entities unaffiliated with the networks. These are primarily the major motion picture companies and inde pendent producers. The networks in whole or in part finance the development of this programming by financing the cost of stories, outlines, scripts, plot f'ms and the like. In exchange for financing the various steps of development, the pet work receives an exclusive option to license the financed program or programs at agreed-upon license fees. In the case of television series, the network options can continue for from five to seven years of product. (4) Compensation As indicated above, the program suppliers are compensated by the networks for the programming they supply. The networks also compensate the individual s'ations across the country which carry the network programming in accordatier with affiliation agreements which exist between each network and its afh Late stations. In addition the stations sell local advertisers commercial time adiacent to network programning which because of the larger audiences generated by network programming, commands higher prices than other local time. The net works receive their compensation from national advertisers who purchase advertising time on the networks. (1) Definition Syndication Television syr-fication is the leasing of programming to individual stations on a city by city basis. Most contracts carry an exclusivity clause covering 35 miles from the city of license prohibiting other television stations or CATV systems from using the same material. The product is composed mainly of the following: 1. speciala.- -Usually first-run entertainment or documentary material with two telecasts over a year s term. 2. First Run Series--Primarily half-hours with 26 to 39 originals and sufficient repea's to fill out a 52-week telecast schedule on a once-a-week basis (1 e., 26 & 26 as in Ozzie's Girls, or 39 & 13 as in Price Is Right). Some strip programming is offered What's My Line, Truth Or Consequences) running five a week with 195 new shows and 65 repeats being typical Another major form is the talk variety shows such as Mike Dougins, Merv Griffin and Dinah Shore. Because of the nature of the program content, very few repeats are produced. First-run contracts are usually for a one year period of time. 3 off Network Those series which achieve network success and build up at least four years of production are valuable to the syndicated market. They are usually half hour (Hogan's Heroes, I Love Lucy, Adam 12) or hour (Perry Mason Ironside, Marcus Welby) in length. Contracts run anywhere from two runs to unlimited runs with six typical. Usual contract terms cover five to seven years 4 Catalog Product - This is older series product, mostly off-network, that is sold for a short duration (Honey mooners, Have Gun Will Travel). Usually one or two runs with contract term of one to two years in selective markets. & Feature Filma Common trend is to sell the networks first and syndicate post network. Most popular packages carry. 20 to 30 pictures and terms are five to seven years with five to ten runs of each feature. Older features recycled are replaced with the better titles continuing television exposure and the poorer titles gang on the shelf. (B) Station scheduling of syndicated product 1 Most affiliate stations (ABC, CBS, NBC) in the eastern time zone have the following local time periods to fill : 9:00 am to 10:00 am 1:00pm to 1:30 pm 4:30 pm to 8:00 pm (with the exception of network news), 11 6 pm to 11.30 pm. 1:00 am to signoff Local and network news usually fill the 6:00 7:30 pm time period and the 11 ob 11.30 pm time period. Features are used afternoon and late night weeke de preemptions in prime time and as five a-week early shows which are on a I'e most valuable part of the day for the syndicator is 7.30 §:00 pm for firstFototer a week programming. The second most valuable part is 430-6:00 pm falk variety shows, off network syndication and feature films taking time it at order 2. Independent Stations Independents have a poorer circulation in the dayfe and do not pay mach for this area. Its prin arily used for the multa le run feature fins and live local shows Nince most aff iates aftract an older audience with their talk variety and news progran ning. It late afternoon and evening 10 & Đờ; nã, Indies basically target Peir counterprogramming to the kidut Tatay This thaterial is primarily off network series (1 Love 19 y Star Trek, Wad Wild West Andy Grimes Flintstones Gilligan's Island). The 8:00 11:00 se period is comprised of ninety minife falk Variety shows feature fi'tion, ***** and off network series Most all Monday to Friday programming is stripped (same series each day in time period) (C) Price Negotiations Most rate cards are set on the philosophy that the biggest markets with the most curvulation pay the biggest prices (New Yorkoned the smaller ni arkets pay atench smaller pri e proportionate v. í Zanesvice This in tem.j@red by Latorical price patterns and artistic merit of new program offerings (Mary Iver Moore would be more desursl'e flan Pie Doris Day series at 4 plus mell for much higher dollars). Supt.y and demand plus the skull of the negotiator play A large part in arriving at a final price in each market by station Income Pe United States advertising supported stations' basler al is to attract bge audience through the proper selection of per gratis I'm a fence is *ulmevjuently “priced and resold to advertisers pritiat vf}rong), their advertis abg ngetaciem. Value would be s!, ›wn, through the use of rating research faterial To illustrate, each rating point represents 1% of the total market housebrids Therefore, in a million household market, a one rating would mean 10.000 dozek. Ten rating points would thus achieve an audience size of 100,000 homes Hypo thetically, a ten rating would be worth $250 per 30 second spot. If the sta could change its programming and increase the rating from a ten to a fifteen it would automatically increase its price per spot by 50% making it worth $975 It obviously leads to the conclusion that successful programming is worth 5 ** money in net profits even though its cost might be higher than less effect.ve programming. CATV is measured by the rating services in any county where there are over 10% cable homes. Since this viewing is listed in the research books, the stat, e is getting credit and charges his rates accordingly. There is no separate break at of CATV systems in the books. INFRINGEMENT OF COPYRIGHT Section 501 deals with infringement of copyright. Subsection (b) thereef entitles the copyright holder to initiate action for any infringement of his copy right. That is as it should be. However, subsection (c) grants a television broadcast station rights as a legal or beneficial owner of copyright in the programs if transmits for purposes of instituting action for infringement against cable tel vision systems. The rights to most television programs are held not by an individ ual broadcaster, but by a syndicator or other program owner. They are fully protected by subsection (b). In those cases where a television station does hold the copyright, it has every right to sue for infringement under subsection (bo), tan Subsection (e) would grant to hundreds of broadcasters the ability to institute harassing suits against cable operators for minor or even inadvertent vicla", tis of FCC rules. This creation of private attorneys-general is unprecedented in e pye right law and should be stricken from the bill. Infringement of copyright is f. f actionable under Section 501 (b), and adequate remedies for violations of ÞVC regulations are available to broadcasters under the Communications Act More specifically, under the FCC's rules cable television systems are permitted to carry both “local” and “distant" television signals. Under certain circumstances the rules also require these systems to delete or black out certain prograns from the distant signal. These exclusivity rules are based on unfair competitie and copyright related concepts. Because the rules are quite complex, a cable system even in good faith sometimes fails to delete a program which should have been deleted. Causes for this include inadequate program schedule notices, last minute schedule changes by either the distant or local station, equipment mal functions, power outages and program overruns. Furthermore, given the wall size of most cable television operations and the vast number of programs involved (the average CATV system carries over 9 television broadcast stations), un a tentional errors can and do occur. It can thus be seen that there will be r any instances where under the terms of Section 111, the cable system woud be g of prima facie copyright infringement. The FCC has remedies for the w and repeated violations of these rules by cable system operators. These te test es include cease and desist orders and revocation of operating authority. In add' e the FCC has asked Congress to include cable systems in the section of the Communications Act dealing with forfeitures. Thus adequate remedies are ava able without resorting to copyright 1. ringment sults in the courts Section Sel (c) should therefore be deleted. INTRODUCTION Final rules of the Federal Communications Commission governing cable television service in the 100 largest televisio markets went into effect March 31, 1972, following six years of FCC proceedings during which development of CATV service in maior cities has been effectively blocked by interim regulations prohibiting the importation of distant television signals. The rules as effective allow limited importation to occur, varying with the size of the market and the locally-receivable signals, but at the same time provide broad "exclusivity protection to local stations for their programs, thus requiring cable systems to delete programs from the imported signals. No provision for payment of fees by cable systems to the copyright owners of television broadcast programming shown or those systems is included in the PCC rules, and under the Fortnightly decision cable systems are not liable for copyright. Nevertheless, the Commission anticipates Congressional legislation to require copyright payments and would regard its enactment as a reaffirmation of the PCC's regulatory program toward cable tele vision. 1 Fortnightly Corporation v. United Artists, 392 U. S. 390 1968 |