Company Town : BMG, TCI Halt Plan for Music Channel

They don’t want their MTV, or each other for that matter.

Berteslmann Music Group and Tele-Communications Inc. confirmed Thursday that they have dropped plans to launch a music video network. The two companies blamed the decision on “changing market conditions” and said they will continue to discuss other ventures.

The BMG-TCI channel, announced last year, was supposed to combine music and retailing through sales of music-related products such as concert tickets and CDs. By trading on their combined strengths--TCI is the country’s largest operator of cable systems, and BMG owns RCA, Arista and other record labels--the companies intended to mount a challenge to MTV.

But those plans began to unravel this year when Warner Music Group, Sony Software, EMI Music, PolyGram Holding and Ticketmaster announced plans to start another music network. Analysts said TCI and BMG would be hard-pressed to compete with the new rival, given the superstar acts aligned with those companies and Ticketmaster’s telecommunications reach.

TCI declined to comment on reports that its chief executive, John C. Malone, personally pulled the plug on the network Thursday. But TCI and BMG both left open the possibility that they will join the network being developed by Warner, Sony, Ticketmaster and the others.

*

Universal Pictures Chairman Tom Pollock raised a few eyebrows earlier this week by handing “green light” authority and other broad responsibilities to newly named studio President Casey Silver. But knowledgeable sources say that may have been the only way to keep Silver.

The executive, who has maintained an unusually low profile while working as Pollock’s production president for the past five years, is said to have demanded a more significant role as part of a new contract.

“Casey would not have stayed without getting that additional responsibility,” said one source with close ties to the studio. “They (MCA/Universal) seem to be intent on keeping stable management, and the only way to maintain that stability was by giving Casey more authority.”

Stability is a hallmark of MCA, Universal’s parent company. Chairman Lew R. Wasserman and President Sidney J. Sheinberg like to point out that their combined tenure there exceeds 80 years.

MCA may have tipped its hand to what was in store earlier this year when it expanded Pollock’s duties as part of his long-negotiated contract renewal. Aside from his studio responsibilities, Pollock is quietly working to resolve threats to United International Pictures, the international distributor under fire in Europe on antitrust grounds. He is also looking for ways to pump up MCA’s minority-owned Cineplex Odeon movie theater chain.

“In our business, once you’ve expanded your own arena, you’re much more comfortable delegating,” one executive said, referring to Pollock’s willingness to share more power with Silver. “And Casey’s responsibilities are real.”

People who have worked with Silver do not foresee any big policy changes at the studio. Like Pollock, they say, Silver is attracted to star-driven projects and high-concept material. Universal’s two biggest suppliers also happen to be two of the industry’s most mainstream companies: Steven Spielberg’s Amblin Entertainment (“Jurassic Park,” “Schindler’s List” and “The Flintstones”) and Imagine Films Entertainment (“The Paper” and “Parenthood”).

Silver, who came up through the production ranks, is well-liked by talent. One producer says Silver thinks like a filmmaker. “He understands the process and is passionate about it,” the producer said. “That’s not always true with people in that job.”

In the past, Universal has been criticized for ceding too much control to big-name talent, especially during the long box office slump that was finally broken by “Jurassic” last summer. “They have a tendency to get very deeply into expensive movies without thinking what they’re doing,” said one critic, who asked not to be named. “They also allow themselves to be muscled into doing a lot of bad movies. Other studios have more calm and self-esteem.”

Universal’s upcoming films include “The Cowboy Way,” “The Shadow,” “Demon Knight,” “The Little Rascals” and “Junior,” starring Arnold Schwarzenegger. After a string of duds that included “The Getaway” and “Greedy,” the studio hit pay dirt over Memorial Day weekend, when “The Flintstones” took in $37.5 million.

Its upcoming slate also includes “Waterworld,” starring Kevin Costner. The studio has denied reports that the film’s budget has spiraled past $100 million.

*

Rupert Murdoch’s honeymoon seems to have been short-lived. After being showered with accolades for his masterful raid on CBS affiliates last week, the Fox Inc. leader is being challenged on two fronts.

Rep. Edolphus Towns (D-N.Y.) on Thursday accused Murdoch of treating African Americans with “apparent contempt” by scratching “Roc,” “South Central” and “Sinbad” from the Fox network’s fall schedule. The Congressional Black Caucus is expected to take up the cancellations on Wednesday, based on a complaint from “South Central” producers Ralph Farquhar and Michael J. Weithorn.

Towns, a former chairman of the CBC, accused Murdoch of offering “plantation programming” in place of the racier, youth-oriented shows that built Fox. “Apparently, as the network moves to become more mainstream, its attitude to positive black programs is, ‘We don’t need, nor want them anymore,’ ” Towns charged in a statement. Fox has said the shows were canceled because of poor ratings. It also pointed out it is airing “Mantis,” the first black superhero TV show this fall.

Separately, federal regulators say they are reviewing Murdoch’s purchase of six prominent TV stations in 1985. At issue is whether the deal violated laws prohibiting foreign ownership of U.S. broadcasting properties. Murdoch denies any impropriety.