UNITY IS THEME AT NAB AS FRITTS MAKES DIRECT PITCH TO NBC, FOX, CBS
LAS VEGAS -- Three principal speakers at opening session of NAB convention here Mon. all made pitches for unified front to overcome future challenges, with NAB Pres. Edward Fritts issuing direct call to NBC, CBS and Fox to rejoin Assn. “Broadcasters can move mountains in the legislative and regulatory arena when we are unified,” he said. Conceding divisive 35% ownership cap issue (which caused 3 TV networks to pull out of NAB more than year ago) is “vitally important,” he said there was “panoply of other challenges we face” where broadcasters were united. Keynoter Richard Parsons, CEO-designate of AOL Time Warner, said only by cable and TV industries’ “working together can we take a leadership role in shaping a great new age of television.” Richard Wiley, winner of NAB Distinguished Service Award, said meeting new competitive pressures required “substantial industry ingenuity and also unity.”
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Fritts said FCC Chmn. Powell’s proposal for voluntary steps by industry segments to advance DTV transition (CD April 5 p1) was “a terrific step forward.” He said there was “gravitational pull to digital that’s inevitable. We embrace the principles embodied in the Powell plan… This transition [to DTV] is far too important to consumers to risk further delay.” For those who contend over-air broadcasting is dying, Fritts said coverage of Sept. 11 terrorist attacks displayed “our relevancy is obvious… It reaffirmed that broadcasting remains competitively relevant, technologically vibrant… Indeed, this was our finest hour.”
While Internet bubble has “popped… I don’t believe for a minute” broadcasters can ignore opportunities and challenges it presents, Fritts at same time said broadcasters were “puzzled… and extremely disappointed” by recent copyright royalty panel decision on radio streaming. NAB pres. again attacked proposed EchoStar takeover of DirecTV to form satellite “monopoly” and satellite radio plans of XM Radio and Sirius. Of latter, he said: “Local radio stations accept the challenge of the new satellite competition. What we can’t accept is a competitor that plays fast and loose with the rules” with respect to terrestrial repeater stations.”
Former FCC Chmn. Wiley said that during his service at Commission his objective was “less regulation for broadcasters who fulfilled their public trust and more enforcement for those relatively few who abused it.” Upon coming to FCC, first as gen. counsel in Nixon Administration, he said he made it point to attend state broadcaster association meetings and “discovered an unfortunate fear and distrust of the FCC -- born of decades of outdated and counterproductive regulation.” When he became chmn., he said, he made “a determined effort to change these conditions.” With only “occasional deviations,” he said Commissions that have followed him have “pursued this same general approach.” As for DTV, he said “there is no turning back. We have committed the nation to a digital tomorrow… As a result, the entire pace [of transition] seems likely to accelerate at long last.”
Parsons said digital innovations were having profound effect on program creators. But, he said, “no matter how digitized content becomes… the power and glory of the entertainment industry will always depend on product, [and] people, not technology, will continue to be what counts most… It’s that fact that makes me confident about the future of my company and our industry.” Broadcasting and cable challenges will be to “anticipate, react to and shape the way new methods of distributing and interacting with content will affect out business,” Parsons said.
At later session on FCC rules, Rick Chessen, head of FCC digital task force, explained Powell’s transition proposals to standing-room-only audience, saying “it’s time for everybody to step forward [and] take one step forward together.” But, said George DeVault, WKPT Kingsport, Tenn., under Powell’s proposal for cable systems to make commitment to carry 5 DTV signals, “somebody’s going to get left out.” Echoing that theme, attorney Thomas Van Wazer said small- market stations should have commitment from local cable systems that digital signal would be carried before ordering and installing necessary equipment.