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Drops WGN-TV and WWOR-TV; observers divided over long-term implications
Tele-Communications Inc.'s decision to drop WGN-TV and WWORTV from many of its cable systems may not signal the end of the superstation concept, but it does point up its vulnerability in an era in which cable operators are willing to swap networks as a way to drum up cash.
As part of its cable network overhaul announced late last month, TCI is dropping the superstations from many of its systems as of Jan. 1. The networks will be replaced by new networks that will pay TCI upfront launch fees of $5-$8 per subscriber.
Industry observers are divided on whether other MSOs will follow TCI's lead and drop superstations to cut costs or generate cash.
"It depends on how MSOs perceive what subscribers in their market want and what their own economics are," says Tom Wolzien, financial analyst for Sanford C. Bernstein. "You have to look at it on a case-by-case basis. What TCI does doesn't necessarily mean a trend."
Dennis McAlpine, analyst for Josephthal Lyon & Ross, says future MSO actions may be shaped...