March 08, 2000
NBC Pulls Out Of NAB
source: Yahoo Biz

NBC is reportedly resigning from the National Association of Broadcasters, saying the group has not fought hard enough to ease limits on ownership of television stations.
In a letter to NAB President Edward Fritts, NBC President Robert Wright said the association has "chosen to either stand on the sidelines, drag its feet or flat out oppose the changes that NBC seeks."
The letter was obtained by The Wall Street Journal.
Wright also wrote that NBC cannot support policy decisions that go against "our best interests, and the interests of sustaining broadcasting as a growth business and vigorous competitor to pay television."
Under current federal rules, no company can own stations that reach more than 35 percent of U.S. households.
As of September, NBC, a subsidiary of General Electric Co., was already near that cap, with 13 broadcast outlets reaching about 27 percent of the nation's homes. NBC-affiliated stations reach far more, but most of those are owned by other companies.
Large media companies have been lobbying to get the cap lifted. In June, the Fox network pulled out of the NAB last year over the issue.
Smaller owners of TV stations oppose any increase in the cap. They fear greater concentration of station ownership, especially by networks that distribute programming, would put smaller players in a weak position when negotiating to get shows.
An NAB spokesman told the newspaper that the association generally supports deregulation but "our board has spoken on the 35 percent cap and we support retaining it."
The NAB, based in Washington, represents 1,200 TV stations across the country and more than 5,000 radio stations.
[also at: http://abcnews.go.com/wire/Business/reuters20000308_668.html ]

posted on March 08, 2000 12:08 PM