CABLE, BROADCAST STATIONS AT ODDS

A dispute between cable operators and area broadcasters could leave cable customers scrambling for "rabbit ears" to watch the World Series and other over-the-air network programming.

From Paducah, Ky., to Cape Girardeau, cable operators have threatened to drop the ABC, NBC and CBS affiliate broadcast stations from their lineups rather than pay retransmission fees.

The move would affect KFVS, the CBS affiliate in Cape Girardeau; WPSD, the NBC station in Paducah; and WSIL, the ABC affiliate in Southern Illinois.

Cable TV giants like Denver-based Tele-Communications Inc. have made it clear they will not pay a per-subscriber fee or direct payment of any kind for the right to carry broadcast stations.

Cable operators such as TCI, which serves about 13,000 subscribers in Cape Girardeau and Jackson, are mailing notices to customers indicating that the three broadcast stations could be dropped as of Oct. 6 if no agreement is reached.

WSIU, the local Public Broadcasting System affiliate in Carbondale, Ill., is not affected by the dispute. That's because the new, federal cable act's retransmission-fee provision only applies to commercial stations.

In addition, there are no negotiations going on with KBSI, the Fox network affiliate in Cape Girardeau. That's because Fox worked out an agreement with TCI nationally that provides for allocation of another channel for a new Fox cable network.

Under the 1992 cable act, commercial stations nationwide can elect to be "must-carry" stations or seek compensation from cable companies carrying their signals.

Under "must-carry," a station could designate the channel on which it would appear on the cable system but would receive no compensation.

Stations such as KFVS and WPSD have opted for the "must-carry" status in some cases, such as those involving small cable systems and places on the fringe of their viewing area.

But KFVS, WSIL and WPSD have all elected to seek compensation from the major cable operators in their prime-viewing region.

Officials at KFVS-Channel 12 and WPSD-Channel 6 maintained Monday that such compensation is only fair. Officials with WSIL-Channel 3 could not be reached for comment.

"We continue to assert that it is only fair that we be compensated in some way just like all the major cable networks are compensated by the cable companies," said Richard Paxton, WPSD station manager.

Roger Harms, manager of the cable system serving Cape Girardeau and Jackson, said Monday that the cable operator wants to carry the broadcast stations but without any additional cost to its customers.

"We are willing to make some kind of arrangements as long as it is not monetary," said Harms.

He said stations could be offered second channels similar to the arrangement with Fox, or some agreement could be reached for promoting the broadcast station on the cable system.

"We will negotiate up to the last minute if that is what it would take," said Harms.

"If we can't come to some kind of agreement through negotiations, by law we will have to take the signal off," he said.

Both Harms and broadcasters declined to disclose any costs regarding retransmission fees.

Under the cable act, such costs could not be passed on to the customers in the first year, but could and would be passed on to subscribers in future years, Harms said.

Harms said the dispute centers around continued access to "free TV."

Cable operators should not have to pay to carry stations that are using the airwaves free of charge, he said.

Harms said the cable operators are not charging subscribers for the broadcast stations themselves, but rather for an "antenna service."

"What we provide to our customers is good reception," said Harms. Over-the-air reception of the broadcast stations is poor in many parts of Cape Girardeau and Jackson, he said.

The enhanced reception translates into a wider audience and ultimately has an impact on TV advertising for broadcast stations, Harms said.

Harms said he has sent letters to the three broadcast stations indicating a willingness to extend the deadline if negotiations are proceeding.

But Howard Meagle, vice president and general manager of KFVS, said he's opposed to such an extension unless an agreement has been worked out in principle.

"Whatever needs to be done, we can do between now and then (Oct. 6)," he said.

Meagle and Paxton both contended that broadcast stations provide the popular programming that all TV viewers, including cable customers, want.

According to a 1993 public-opinion survey commissioned by TCI, 59 percent of those surveyed said they would cancel their subscriptions if the ABC, CBS and NBC network stations were dropped from their cable systems.

In Cape Girardeau County, 78 percent of TV viewers watch the various broadcast stations at any one time compared with 18 percent for cable programming, Meagle said industry surveys show. The remainder view the "super stations," such as WGN, which are considered a separate category from the cable channels, said Meagle.

"There is a value there to the cable systems," agreed Paxton.

He argued that the federal regulations will prevent any significant retransmission fee costs from being passed on to the cable customers.

Meagle said the idea of dropping local network affiliates from cable systems is comparable to a merchant removing his "highest selling lines" but still expecting people to frequent his store.

He maintained the cable operators have ignored the wishes of the subscribers in threatening to drop the broadcast stations.

"I would hope that the consumer out there would start getting on the phone and talking to the Roger Harms of the world and let them know that they are customers and consumers and ... they need to start paying attention to them," said Meagle.

He and Paxton said their stations are continuing to negotiate with cable operators such as TCI and hope some agreement can be reached. Until then, customers will simply have to stay tuned.