AT&T, NBC in pact, seen as a blueprint for future
NEW YORK (Reuters) - Telephone and cable giant AT&T Corp. and the NBC television network announced Thursday a wide-ranging pact to distribute NBC broadcast, cable and newer digital services over AT&T's cable network.
The agreement should serve as a blueprint for future deals covering how digital television signals -- the new standard for TV transmission -- are carried through cable and telephone networks, as opposed to traditional analog broadcasting over the airwaves, company executives said.
The Federal Communications Commission requires cable operators to carry the local analog signals of all broadcaster for free under so-called ''must carry'' rules. But no such rules exist for the new digital signals. The FCC is taking wait-and-see approach, leaving it to broadcasters and cable operators to work out among themselves.
NBC, a unit of General Electric Co., and AT&T Broadband & Internet Services (BIS), the cable operating arm of AT&T, said the deal calls for AT&T cable networks to carry the CNBC and MSNBC cable TV services, as well as NBC's Olympics programming. AT&T is the No. 2 U.S. cable operator behind the properties and affiliated networks of No. 1 ranked Time Warner Inc.
Leo Hindery, chief executive of AT&T's broadband operations, said in a conference call with reporters Thursday that he hopes to forge similar deals with other networks or affiliates.
''We tried to draft and write the HDTV (digital, high-definition television) provisions and retransmission provisions in a way that they could serve as templates for other affiliates -- whether they be NBC affiliates or other affiliates. You should assume that it is our intention to work with the other networks in these areas similarly,'' Hindery said.
''Any NBC affiliate that wants to pursue HD carriage, as well, in their market in a fashion similar to what has happened here, we're very, very open to those conversations,'' Hindery said.
Regarding the potential for other areas of cooperation, such as in the Internet, NBC's top cable executive said it is possible.
''That's something we spent a lot of time thinking about and AT&T is hugely focused on that. Through this relationship we hope there are other positive ways for us to work together on the Internet and as other platforms develop,'' said Tom Rogers, president of NBC Cable.
''We are especially pleased with the upcoming Olympics carriage, which will delight our customers,'' Hindery said in a prepared statement, referring to AT&T's rights to transmit NBC Olympics programming through the next decade, including the Sydney Games in 2000.
As part of an eight-year deal, for which terms were not disclosed, NBC granted AT&T's cable unit the right to retransmit the television signals of 13 NBC owned and operated local broadcast stations over the cable network of AT&T, the former Tele-Communications Inc. network.
AT&T is paying NBC an undisclosed amount for the programming for MSNBC and CNBC. There are no fees changing hands for the retransmission rights.
AT&T agreed to carry new NBC digital services that could include high-definition television programming as well as stock feeds and other data, ensuring that NBC has distribution for digital as well its existing analog programming.
The wider distribution of MSNBC, a cable TV and Internet-based news network, over AT&T cables and the cable networks of other operators promises to extend MSNBC's potential audience reach to more than 66 million homes within the next three years.
The agreement also provides for distribution of the digital signals of NBC, the core broadcast network, to AT&T cable customers. The companies said they agreed to work together to provide that NBC's high-resolution programming will be displayed on traditional TV sets as well as on new high-definition TV sets.
AT&T shares closed off 6 cents at $53.69, and GE shares lost $1.69 to close at $101, both on the New York Stock Exchange.
17:46 06-10-99 |
