Appendix C

The Effect of the PCC's Syndicated
Program Exclusivity Regulations
On Cable Television Systems

Under the FCC's 1972 Cable Television Regulations,

cable television systems in the top 100 television markets are generally permitted to carry all 'local' television

stations and two (or three, in some instances) distant independent stations.

Programming on the distant independent stations which

is under contract to the local market television stations is

subject to the FCC's syndicated exclusivity regulations.

When a local-market station requests 'protection' of its programs under the exclusivity rules, a cable system must 'blackout' the programming on the imported stations which is also under contract to the local-market station.

Requests for such protection are known by NCTA to be

in force in new CATV systems in such markets as North Little Rock, Arkansas (Market #50); Hampton and Newport News,

Virginia (Market #44); Scranton, Pennsylvania (Market #49); Wauwatosa, Wisconsin (Market #23); Albany, New York

(Market #34);

Philadelphia, Pennsylvania (Market #4);

North Syracuse, New York (Market #35).

Some examples of the effect of the exclusivity regulations in these television markets is shown below:

(1)

Scranton, Pa., is located in television Market

#49 (Scranton-Wilkes-Barre, Pa.). There are three

network stations in the market. The cable system in
Scranton imports three distant independent stations.

Due to exclusivity requests from all three market
stations, the cable system is losing 32 percent of all
programming from the three distant independent stations
during the critical 'prime-time' viewing period of
7-10 p.m. nightly

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or the equivalent of a total loss

of one of the three distant stations.

(2) Newport News, Va., is located in television

market #44 (Norfolk-Hampton-Newport News-Portsmouth, Va.).

There are three network stations and one independent

station in the market. The cable system in Newport

News imports two distant independent stations.

At present only one of the four market stations

requests exclusivity protection.

Yet, in a recent week,

requests for protection from this one station against

one of the imported stations resulted in the 'blackout' of 21 percent of the full-day programs on the distant

station.

(3) Wauwatosa, Wi., is located in television market #23 (Milwaukee, Wi.). There are three network stations and one independent station in the market. The cable system, presently under construction, will import two independent stations when it becomes operational.

Although the system is not yet in operation, it has already received written and verbal requests for syndicated program protection from all four market stations.

The requests require that 62 percent of the daily programming of one distant station, and 58 percent of

the daily programming of the other distant station be

'blacked out'.