Report No. DC -         ACTION IN DOCKET CASE    March 30, 1995
     
     FCC EXAMINES BROADCAST TELEVISION 
                                  NETWORK AFFILIATION AGREEMENTS
     
                                Today, the FCC initiated a proceeding to examine whether or not to eliminate
     or modify filing of affiliatoin contracts rule.  This rule requires all television broadcast
     licensees to file copies of network affiliation contracts, agreements, and understandings
     with the Commission.  The contract must be reduced to one written document,
     incuding substance ofany oral arguments, without reference to any other docuemnt.
     
          The rule does allow subsequent renewals, changes or amendments of the
     contract to be set forth in separate filing that refer to the original contract. 
     Notification of cancellation or termination of the filed contracts is also required.  This
     rules applies only to aggreements with broadcast television networks taht offer 15 or
     more hours of programming per week to 25 or more affiliates in 10 or more states. 
     Thus, while ABC, CBS, NBC and Fox are subjext to rule, the United Paramount
     Network and the Warner Brothers Network are not.
     
          The NPRM posits that changes in the video marketplace generally, and the
     terrestrial broadcast television industry particulary, recommend a reexamination of the
     benefits and coast of the Commission's requirements that broadcast television stations
     file their affiliation agreements and that these filings be made publicly avaliable.  The
     primary purpose of requiring broadcast television staions to file their affiliation
     agreements with the Commission has been to give the Commission the ability to
     monitor there contractual releations and ensure that the Commission's restricitons on
     these relationships are not violated in affiliation agreements.  
     
          The NPRM asks a number of questions about the effect of markplace changes
     on the benefits of these filings.  The most important quesiton is whether the
     COmmission can achieve its purpose by relying on affiliates or others to file
     complaints, rather that by continous monitoring network/affiliate contracts.  The
     NPRM also asks a number of quesitons about the effect of marketplace changes on the
     costs of these filings.  Making these filings publicly available may adversely influence
     the comeption between networks or between stations for affiliation.  Networks can
     view each others' affiliation agreements and monitor contract terns offered by each
     other.  Similarly, broadcast stations in a given market can view what contract terms
     each affiliated station in tat