Report No. DC 95-79ACTION IN DOCKET CASE            June 14, 1995
     
     
              FCC EXAMINES RULES GOVERNING BROADCAST TELEVISION
                          ADVERTISING SALES PRACTICES
                              (MM Docket 95-90)
                                       
                                                                      Today, the FCC initiated a proceeding examining its
     rules governing the relationship between television networks
     and their affiliates in the advertising market.  This
     continues the Commission's examination of its rules
     regulating broadcast television network/affiliate relations
     in light of changes in the video marketplace.
     
          Two rules are slated to be examined.  The "network
     control of station rates" rule prohibits agreements by which
     a network can influence or control the rates its affiliates
     set for the sale of their non-network broadcast time.  The
     "network advertising representation" rule prohibits
     broadcast television affiliates that are not owned by their
     networks from being represented by their networks for the
     sale of non-network advertising time.  Both of these rules
     address relationships with any network that provides an
     identical program to be broadcast simultaneously by two or
     more stations.
     
          The Commission said that changes in the broadcast
     television industry warrant a reexamination of the costs and
     benefits of these rules.  In reconsidering these rules, the
     central focus will be on whether they continue to serve
     effectively the Commission's cornerstone interests of
     promoting diversity and competition.  
     
          The Notice of Proposed Rule Making (NPRM) asks a number
     of questions about the effect of marketplace changes on the
     continued need for these rules, including whether networks
     and affiliates have the incentive and ability to reduce
     competition in the video advertising market.  The NPRM also
     asks whether these rules are effective in preventing the
     harm to the public interest that they are intended to
     forestall.  
     
     
                                     (over)
     
     
                                        
     
          Action by the Commission June 14, 1995, by Notice of
     Proposed Rule Making  (FCC 95-226).  Chairman Hundt,
     Commissioners Quello, Barrett, Ness, and Chong.
     
                                    - FCC -
     
     News Media contacts: Patricia A. Chew at (202) 418-0500.
     Mass Media Bureau contacts: Paul Gordon at (202) 776-1653 or
     Tracy Waldon at (202) 739-0770.