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.