TABLE 1


TABLE 1—Vertical Integration: Top Fifteen Programming Services by Ratings
[By Prime Time Rating]
Rank Programming Service MSO with Ownership Interest1
1 TNT TCI, Time Warner (Others have 5% or less)
2 TBS TCI, Time Warner (Others have 5% or less)
3 ESPN None
4 USA Network None2
5 Lifetime None
6 Cartoon Network TCI, Time Warner (Others have 5% or less)
7 Arts & Entertainment None
8 The Family Channel TCI
9 Discovery TCI, Cox
10 TNN (The Nashville Network) None
11 CNN TCI, Time Warner (Others have 5% or less)
12 The Learning Channel TCI, Cox
13 BET TCI, Time Warner
14 Sci-Fi Channel None
15 The Weather Channel None

Sources: Paul Kagan Associates, Cable TV programming, Prime-Time Ratings, July 1996, at 10. (Reprented from ANNUAL REPORT, op. cit., at Appendix G, Table 1).
1See Table 5 for ownership percentages
2USA Network and Sci-Fi Channel are owned by Viacom which sold its cable systems to TCI in 1996.

















TABLE 2


TABLE 2—MSO Ownership in National Programming Services
Programming Service Launch Date Ownership Percentage
Action Pay-Per-View Sept-90 TCI (22) Time Warner (15)
AMC Oct-84 Cablevision Systems (75)
Animal Planet Jun-96 TCI (49), Cox (24.7)
BET Jan-80 TCI (22) Time Warner (15)
BET on Jazz Jan-96 TCI (22) Time Warner (15)
The Box Dec-85 TCI (5)
Bravo Feb-80 Cablevision Systems (50)
Cartoon Network Oct-92 Time Warner (100)
Catalog 1 Apr-94 Time Warner (50)
Cinemax Aug-80 Time Warner (100)
CNN Jun-80 Time Warner (100)
CNN International Jan-95 Time Warner (100)
CNNfn (The Financial Net.) Dec-95 Time Warner (100)
Comedy Central Time Warner (50)
Court TV Jul-91 TCI (33.3) Time Warner (33.3) Continental (33.3)
The Discovery Channel Jun-85 TCI (49) Cox (24.6)
E! Entertainment Jun-90 Time Warner (49.0) Continental (10.3) Comcast (10.3) Cox (10.4) TCI (10.3)
Encore Apr-91 TCI (90)
Encore Love Stories Jul-94 TCI (90)
Encore Westerns Jul-94 TCI (90)
Encore Mysteries Jul-94 TCI (90)
Encore Action Sept-94 TCI (90)
Encore True Stories and Drama Sept-94 TCI (90)
Encore WAM! America's Youth Network Sept-94 TCI (90)
The Family Channel Apr-77 TCI (20)
Faith & Values Jun-84 TCI (49)
FIT TV Oct-93 TCI (20)
fX Oct-94 TCI (50)
FXM Oct-94 TCI (50)
Germs International Television Apr-93 Cox (50)
The Golf Channel Jan-95 Continental (20.2), Comcast, Cablevision Systems, Adelphia
Great American Country Dec-95 Jones (**)
HBO Nov-72 Time Warner (100)
HBO 2 Dec-75 Time Warner (100)
HBO 3 Oct-93 Time Warner (100)
Headline News Jan-82 Time Warner (100)
Home Shopping Network Jul-85 TCI (80)
Home Shopping Network II Sept-86 TCI (80)
Independent Film Channel Sept-94 Cablevision Systems (50)
The International Channel Jul-90 TCI (45)
Into Television1 Sept-94 TCI (100)
Jones Computer Network Sept-94 Jones (81)
The Learning Channel Nov-80 TCI (49) Cox (24.7)
Mind Extension University Nov-87 Jones (66)
Much Music USA Jul-94 Cablevision Systems (50)
Newsport Feb-94 Cablevision Systems (25)
Outdoor Life Channel Jul-95 Cox (41), Continental (23), Comcast (22.5)
Ovation: The Fine Arts Network Apr-96 Time Warner (**)
Prime Deportiva Mar-95 TCI (100)
Prime Network Jun-93 TCI (33) Cablevision Sys. (25)
Product Information Network Apr-94 Cox (50) Jones (**) Adelphia (**)
QVC Nov-86 Comcast (57.4) TCI (42.6)
Q2 Sept-94 Comcast (57.4) TCI (42.6)
Request Television Nov-85 TCI (40)
Request 2 Jul-88 TCI (40)
Request 3-5 Sept-93 TCI (40)
Sega Channel TCI (33), Time Warner (33)
Speedvision Dec-95 Cox (39.0) Continental (22.1)
Starz! Feb-94 TCI (49.9)
The Sunshine Network Mar-88 Cox (5.3)
TBS Time Warner (100)
Television Food Network Nov-83 Continental (15), Scripps-Howard (13.17), Cox (1.9) Adelphia, C-TEC (**)
TNT Oct-88 Time Warner (100)
Turner Classic Movies Apr-94 Time Warner (100)
Viewers Choice Nov-85 Cox (20), Time Warner (17) Continental (12), Comcast (11), TCI (10)
Viewers Choice: Hot Choice Jun-86 Cox (20), Time Warner (17) Continental (12), Comcast (11), TCI (10)
Viewers Choice: Continuous Hits 1, 2, 3 Feb-93 Cox (20), Time Warner (17) Continental (12), Comcast (11), TCI (10)

*Denotes ownership percentage of less than 5%.
**Ownership percentage not available.
Source: Annual Reports of various MSOs. (Reprinted from ANNUAL REPORT, op. cit., at Appendix G, Table 7).

















TABLE 3


Table 1.—Cable Price Increases Under Various Pricing Policies
[average annual increase)
Nominal Real
1984 Act Deregualtion
January 1986-April 1993
8.3 4.3
1992 Act Regulation
April 1993-September 1994
–2.8 –5.2
Going Forward Rule
October 1994-July 1997
6.3 3.6
Pre-1996 Act
October 1994-February 1996
4.5 1.3
Post-1996 Act
February 1996-July 1997
8.2 5.6


















TABLE 4


Table 2.—Trends in Cable Concentration
National Level Concentration Ratios
Year Four Firms Concentration
Ratios
Unadjusted Adjusted for Joint Ownership
1969 16.3
1971 21.7
1973 27.2
1975 26.4
1977 23.1
1979 24.0
1981 27.3
1983 28.1 339
1984 29.0 357
1985 29.4 369
1986 27.0 352
1987 28.1 662
1987 43.1 784
1990 45.6 866
1991 46.0 872
1992 48.2 928
1993 47.2 880
1994 47.2 892
1995 54.6 1098
1996 61.4 1326

SOURCES: 1969-1981—(1) Sylvia M. Chan-Olmsted and Barry R. Litman, “Antitrust and Horizontal Mergers in the Cable Industry,” Journal of Media Economics, Fall, 1988, at 8, 9, 19; 1983-1987 National Telecommunications and Information Administration, Video Program Distribution and Cable Television: Current Policy Issues and Recommendations, June 1988, Attachment 2, Table 1; 1990-1996—Third Annual Report, Appendix F, Table 2.

















TABLE 5


Table 3.—The Cost of Direct Broadcast Satellite for Service Equivalent to Cable
DBS Average
Expanded Basic $25.99
Equipment 13.83
Second Set Fee 6.31
Equivalent Premium Charge 2.65
Subtotal 48.78
Cost of Local (Basic Cable) 11.97
Total Cost 60.75

Source: TCI handout.

















TABLE 6


Table 4.—Market Shares of Dominant Firms Taking Affiliations Into Account
Dominant Firm Direct Porata All Affiliates
No. Percent No. Percent No. Percent
TCI 16014 26 17746 28 19828 32
Cablevision 2445 2445
20191 32 22273 22273
Time Warner 11843 19
Total Cabal 34116 55

Paul Kagan, “Top Cable System Operators: As of December 31, 1996,” The Operating Market

















TABLE 7


Table 5.—Estimates of Sales Price and Reproduction Cost for Cable Systems Before and After Deregulation
Year Average Price1 Reproduction
1977 391
1978 355
1979 426
1980 657
1981 793
1982 922
1983 1026 6452
1984 948
1985 1008
1986 1341 400 to 7233
1987 1723
1988 1998 6034
1989 2293 4905
1990 2031
1991 1753
1992 1766 7066
1993 2165
1994 1869 8287
1995 1836
1996 2078

1Kagan Associates Inc., Cable TV Master Database, Various issues.
2H.L. Vogel, Entertainment Industry Economics (Cambridge University Press, Cambridge, 1986).
3Shooshan and Jackson, Opening the Broadband Gateway: The Need for Telephone Company Entry Into the Video Services marketplace, October 1987.
4Shooshan and Jackson, Measuring Cable Industry Market Power, March 2, 1990.
5Leland L. Johnson and David P. Reed, Residential Broadband Services By Telephone Companies? (Santa Monica, Rand, 1990).
6David P. Reed, Residential Fibre Optic Networks (Artech House, Boston, 1992), Tables 5.3 and B.8).
7Bell Atlantic, In the Matter of the Application of: The Chesapeake and Potomac Telephone Company of Maryland and Virginia for Authority Pursuant to Section 214 of the Communications Act of 1934, as amended, to Construct, Operate, Own and Maintain Facilities and Equipment to Provide a Commercial Video Dialtone Service within a Geographic Territory Defined by the Maryland and Virginia Portions of the Washington Local Access Transport Area, December 1994 Exhibit 3.
U.S. West, In the Matter of the Application of U.S. West Inc., for Authority Pursuant to Section 214 of the Communications Act of 1934, as amended, to Construct, Operate, Own and maintain Facilities and Equipment to Provide a Commercial Video Dialtone Service in Portions of Colorado Springs.