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A life and death issue for independent producers: fin-syn rules created them; changes may destroy them.


A life and death issue for independent producers

Aided by federal regulations known as "fin-syn" rules that prohibited television networks from invading their turf, independent television production and distribution companies have grown and prospered across Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  in the past 20 years, providing jobs and bolstering the local economy.

But in recent years, the Years, The

the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109]

See : Time
 recession has hit the industry, and executives say any weakening of financial interest and syndication regulations could drive companies out of business.

Because the rules limit the amount of financial interest that networks can have in their programs, they necessitate ne·ces·si·tate  
tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates
1. To make necessary or unavoidable.

2. To require or compel.
 the networks looking outside their own studios for programs. Independent distributors, meanwhile, syndicate off-network programs (selling to local stations reruns of shows that first aired on a network), movies and first-run syndication programs, which are produced to air in syndication their first time out. Under fin-syn, networks also are prohibited from syndicating their programs.

"I certainly think fin-syn created an industry," said Dick Askin, president of television at Samuel Goldwyn Co.

Samuel Goldwyn opened about 15 years ago as a company that syndicated classic movies. Today, it also is in the first-run syndication business and co-produces mini-series with the networks. The company started out with "a couple of employees and a library" and now employs 100 people, Askin said.

"Certainly, the fin-syn rule has been beneficial," he said.

Samuel Goldwyn is planning to go public when it completed its purchase of Heritage Entertainment.

"It (going public) just demonstrates the continuing growth," said Askin.

Daniel Segal, who has been running ASC ASC Ambulatory surgery center, see there  Films Inc., a distribution firm, and DAS Productions out of his Malibu home for almost 20 years, said he has watched the independent industry grow substantially, especially in the late 1970s and early 1980s.

"Now it's a real struggle," said Segal. "The whole thrust of the business has been to wipe out the independents. Then Fox sort of came in through the back door. Either way, the independents are going to get it in the neck."

Segal was referring to a waiver Fox Inc. received from the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S.  so that it would not be categorized cat·e·go·rize  
tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es
To put into a category or categories; classify.



cat
 as a network and would not be required to abide by To stand to; to adhere; to maintain.

See also: Abide
 fin-syn rules.

Phil Corvo, president of the National Association of Television Program Executives, said 95 percent of the independent production companies in town were launched after 1970, the year the fin-syn rules were adopted by the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. .

"Beginning in 1970 to 1971, a considerable number of companies started up," recalled Corvo. "If the (fin-syn) rule wasn't there, there probably wouldn't be as many. About 80 percent of all television production is done here in L.A."

If the fin-syn rules are relaxed, and independents go under, Corvo said the production likely will remain in Los Angeles, although the networks are headquartered in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
.

He noted that it's more difficult to film shows in New York because of the weather there and because much of the "talent" lives in the Los Angeles area.

"Even before 1970, most of the network shooting was done here," Corvo said. But he added that the major production companies and networks would have no need to hire most of the people who would lose their jobs through the loss of independent companies.

Dave Bell Dave Bell (born 24 December, 1909 in Gorebridge, died 1986) was a Scottish professional footballer. During his career he made over 150 appearances for Ipswich Town. External links
  • Dave Bell at Pride of Anglia
 of Dave Bell Associates Inc., a television and motion picture production and distribution company, said fin-syn rules have allowed small production companies to maintain their independence from the major networks.

"If these rules change, there'll be every reason for the networks to muscle into this business," said Bell.

But he called the lack of independent distribution companies prior to 1970 irrelevant, saying that the entire syndication business was in its "infancy" at that time and was largely uninteresting (jargon) uninteresting - 1. Said of a problem that, although nontrivial, can be solved simply by throwing sufficient resources at it.

2. Also said of problems for which a solution would neither advance the state of the art nor be fun to design and code.
, even to the networks.

PHOTO : Dick Askin: Samuel Goldwyn Co. executive
COPYRIGHT 1991 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:financial interest and syndication rules for television programs
Author:Rackham, Anne
Publication:Los Angeles Business Journal
Date:Apr 8, 1991
Words:630
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