New Battle Looms on TV Rerun Rules

Another battle is looming over whether federal regulators should abolish the last rules governing the multibillion-dollar TV rerun business.

The major networks are urging the Federal Communications Commission to go ahead with plans to end the quarter-century-old financial interest and syndication rules, but independent broadcasters and producers want even tougher restrictions on the networks.

Capital Cities/ABC Inc., CBS Inc. and General Electric Co.’s NBC have been barred from investing in programs produced independently or by Hollywood studios, keeping them out of the lucrative syndication market once a series’ network run ends.

The rules are to expire Nov. 10 unless the agency can be persuaded otherwise. In filings with the FCC this week, the networks contend that competition from other video outlets supports having the remaining curbs lifted even earlier. NBC, for example, cited several factors, among them Fox Broadcasting Inc.’s mounting share of the prime-time audience, the growing number of cable networks, a thriving first-run syndication market, direct-broadcast satellites and telephone carriers’ entry into the video market.

In separate comments, CBS maintained that singling out three competitors for discriminatory regulations is “fundamentally unfair” in an increasingly competitive market.

In March, the FCC promised to conduct one last review of remaining restrictions to give parties a final chance to advance arguments that the rules should stand. FCC staff members and some commissioners advocated lifting them early if no party produces evidence that they should be retained.

Most of the organizations and individuals who support the rules have banded together to produce an exhaustive study on the need for continued regulations.