stand-by independent has particularly attractive programming, or when importation costs are less dependent on distance, as could occur with satellite transmission.

Regarding importation costs, we have ass med for all systems

in this study that distant signals are delivered by cable system-owned microwave links of 50-100 miles per channel imported. Average distances to the first and second closest independents (in the top 25 markets) are tabulated in the appendix. These averages range from 91 to 208 miles to the cinsest signal, and 125 to 325 miles for the next closest for several types of markets. Thus the microwave cost estimates used here must be considered generally low, although they may be closer approximations for markets with several closely spared systems which pool their

microwave facilities.

on the cable and

allow only two distant signals at any moment "fills in the blanks" where possible, it can reduce the blackedout time to about 24%. Importing a fourth independent further reduces this to 15%, etc. The boxed-in figures represent the expected effect when no stand-by signals are imported.

The impact of the exclusivity rules on subscriber penetration is likely to be at least as great as the reduction in viewing hours. Programs receiving protection will be predominantly those with large audiences, many of whom would value an earlier or alternative viewing date or time which cable could otherwise provide. Nevertheless, lacking data to refine an estimate of this effect, we assume that exclusivity protection is equivalent in its impact on penetration to a proportionate reduction in the number of full-time distant independents carried on the cable. using the appropriate boxed figures from Table 2.

Will it be profitable for a cable system import stand-by independent signals? The costs of additional imports will rise as the CATV system must go further to find each additional independent. Concurrently, the proportion of time that can be filled in with each extra signal is declining. The exclusivity rules thus place the cable firm in a situation of sharply diminishing returns as regards additional penetration from distant signals. Generally, the answer will be "no." Exceptions may occur where the

stand-by independent has particularly attractive programming. or when importation costs are less dependent on distance, as could occur with satellite transmission.

Regarding importation costs, we have assumed for all systems

in this study that distant signals are delivered by cable

system-owned microwave links of 50-100 miles per channel imported. Average distances to the first and second closest independents (in the top 25 markets) are tab ilated in the appendix. These averages range from 91 to 208 miles to the closest signal, and 125 to 125 miles for the next closest for several types of markets. Thus the microwave cost estimates used here must be considered generally low, although they may be closer approximations for markets with several closely spaced systems which pool their

microwave facilities.

allow only two distant signals at any moment on the cable) and "fills in the blanks" where possible, it can reduce the blackedout time to about 24%. Importing a fourth independent further reduces this to 15%, etc. The boxed-in figures represent the expected effect when no stand-by signals are imported.

The impact of the exclusivity rules on subscriber penetration is likely to be at least as great as the reduction in viewing hours. Programs receiving protection will be predominantly those with large audiences, many of whom would value an earlier or alternative viewing date or time which cable could otherwise provide. Nevertheless, lacking data to refine an estimate of this effect, we assume that exclusivity protection is equivalent in its impact on penetration to a proportionate reduction in the number of full-time distant independents carried on the cable, using the appropriate boxed figures from Table 2.

Will it be profitable for a cable system import stand-by independent signals? The costs of additional imports will rise as the CATV system must go further to find each additional independent. Concurrently, the proportion of time that can be filled in with each extra signal is declining. The exclusivity rules thus place the cable firm in a situation of sharply diminishing returns as regards additional penetration from distant signals. Generally, the answer will be "no." Exceptions may occur where the

stand-by independent has particularly attractive programming, or when importation costs are less dependent on distance, as could occur with satellite transmission.

Regarding importation costs, we have assured for all systems

in this study that distant signals are delivered by cable system-owned microwave links of 50-100 miles per channel isported. Average distances to the first and second closest independents (in the top 25 marke's) are tabilated in the appendix. These averages range from 91 to 208 miles to the closest signal, and 125 to 325 miles for the next closest for several types of markets. Thus the microwave cost estimates used here must be considered generally low, although they may be closer approximations for markets with several closely spaced systems which pool their microwave facilities.