ABC Cites Cost Cutting in Move of Affiliate Meetings.

Walt Disney Co.'s ABC network -- following similar moves by rivals NBC, UPN and Fox -- has scrapped plans for its usually lavish summer affiliates' meeting in favor of a series of regional meetings.

In a written statement, the network said its decision to nix the May 22-23 national meeting at its new California Adventure theme park and replace it with a series of "smaller," "more personalized" meetings was based on a desire to "increase participation and enhance face-to-face dialogue among local station management and network executives."

ABC executives will host regional affiliate meetings in New York, Los Angeles, Chicago, Atlanta and Houston.

While most networks that had shifted meeting plans spun the change in much the same way as ABC did, economics and a brewing affiliate revolt may have contributed to the decisions.

ABC executives wouldn't comment on the shift, beyond saying that the action was "not a unilateral decision by ABC. It was a joint decision between the ABC Affiliate Board of Governors and the network," according to Susan Sewell, a spokeswoman for ABC's affiliates division.

Steve Carlston, executive vice president of Affiliate Relations and Marketing at UPN, said that network had embraced the new structure because "we want a back and forth -- a dialogue vs. a monologue. Using regional hubs and eliminating overnight stays, we expect to double the number of station (general managers) that attend."

Economics may well be playing a bigger role than intimacy, however. A market faced with declining ad revenue make a strong case for the low frills of the quicker, cozier arrangements.

"Our decision is not a cost-cutting but a communication issue," Carlton insisted. Still, he added, "cost cutting is a factor for others," claiming the Big Four (ABC, CBS, Fox and NBC) had spent upwards of $1 million on annual affiliate meetings in the past, not counting the affiliates' out-of-pocket expenditures on tickets and hotel rooms.

"Travel expenses have gotten ridiculous," said a Fox spokesman, who asked that his name not be used, in explaining his network's switch to satellite video conferencing as a replacement for its summer affiliates' meeting. "With our system, senior-level executives and (station) GMs can interact and ask questions, without the expenses of a standalone meeting. It's time-efficient, too."

However, recent frictions between the networks and their affiliates give the impression that ABC's decision was not necessarily a coincidence.

The network's announcement came 10 days after the Network Affiliated Stations Alliance, which represents affiliates of the Big Four, filed a petition asking the Federal Communications Commission to investigate the networks for alleged violations of rules regarding influencing local programming and operations. By keeping affiliates confined to smaller groups, the networks might be hoping to defuse tensions.

"I'm surprised that the affiliates would agree to do this," said Joe Saltzman, associate dean of journalism at USC's Annenberg School for Communications. "Such a divide-and-conquer strategy takes away some of (the affiliates') influence."

However, both network and affiliate participants insist that this is not the case.

"Lots of stations are concerned about extra spending," said Alan Frank, chairman of the Network Affiliated Stations Alliance. "The networks have been responsive and are working with us. These decisions (to move to smaller, more regional formats) don't have anything to do with the petition."