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LOCAL CABLE INDUSTRY CONTRIBUTES $2.4 BILLION TO LOS ANGELES AREA ECONOMY IN 1991

First-of-its-Kind Cable Economic Impact Study Released by Los Angeles Area Chamber of Commerce and Southern California Cable Association
 LOS ANGELES, March 17 /PRNewswire/ -- The local cable television industry is one of the few bright spots in an otherwise troubled area economy -- posting double-digit growth from 1988 to 1991 -- because of its estimated contribution of $2.4 billion to the Los Angeles Gross Regional Product in 1991.
 This is the conclusion of a first-of-its-kind study examining the regional economic impact of cable television in Southern California. The cable study, authored by economist Arthur J. Shaw, was released today by the Los Angeles Area Chamber of Commerce and the Southern California Cable Association (SCCA). It covers cable television operations in the Los Angeles Five-County Area of Los Angeles, Orange, Riverside, San Bernardino and Ventura counties.
 The new study, based on responses from a survey of 138 multiple and independent cable system operators and 43 programming service firms, found that the local cable industry contributes an increasing amount of revenues to local governments each year, largely in the form of franchise fees and other taxes. In 1991, local cable operators and their subscribers paid $68 million in franchise fees and other taxes. Since the study was conducted in the third quarter of 1992, figures for 1992 were not available.
 The $2.4 billion figure may actually be understated -- by as much as 40 percent -- if revenues generated by ancillary companies, such as equipment manufacturers and Hollywood production firms, were included. The $532 million spent in the Los Angeles area by local cable networks covers production expenses for original shows. It does not include costs associated with the acquisition of syndication of existing television programs and films from Southern California studios and program producers.
 Cable system operators also reported that in 1991, they and their subscribers paid $2.70 in franchise fees and other taxes for every $1 paid in property taxes, which represents 3.7 times as much in local taxes paid by companies and their customers with similar operations and investments in the community.
 In addition to documenting cable's economic impact, the Chamber/SCCA study shows the industry offers a wide variety of job opportunities, including installers, engineers and technicians; customer service representatives, ad sales, MIS and computer personnel, accountants, marketing and promotions specialists, production and programming personnel and legal staff. As the industry becomes more sophisticated with advances in technology, there is real potential for upward mobility and continued job growth.
 The contributions of local cable system operators extend to equal opportunity employment practices as well. According to the study, the full-time workforce among local cable operators is comprised of 39 percent women and 50 percent minorities. These figures underscore the unique composition of the Los Angeles five-county area, which contains the nation's largest concentration of Hispanics and Asian- Americans, and the fourth-largest urban black population.
 Ray Remy, president of the Los Angeles Area Chamber of Commerce, commented, "Cable television has become a key Southern California industry. Our study found that the industry provides an important source of much-needed revenue for local government, as well as real job growth in this tough economy. And there is a spin-off economic effect on related businesses and services."
 Craig Watson, president of the CCA and general manager for Cencon Cable TV, stated, "The substantial contribution that the cable television industry makes to the Southern California economy is a testimony to the success of local cable systems in providing the programming variety and customer service desired by our region's residents. That contribution can only grow."
 The Chamber/SCCA study indicates there is good opportunity for continued subscriber growth. Currently, cable television reaches 2.3 million subscribers in the Los Angeles five-county area. This 57 percent cable penetration rate is noteworthy, considering the region is already served by 22 off-air television broadcast signals, including nine VHF and 13 UHF signals.
 "At a time of financial uncertainty, cable television is an industry that is making an economic difference that most people don't realize," said Bob Gold, chair of the SCCA Economic Impact Study Committee and vice president of public relations for Prime Ticket Network.
 Founded in 1888, the Los Angeles Area Chamber of Commerce has approximately 2,400 members ranging from multinational conglomerates to individual entrepreneurs. It covers a diverse business community spanning five counties (Los Angeles, Orange, Riverside, San Bernardino and Ventura). The Chamber works vigorously to promote a healthy economy and a desirable quality of life in Southern California.
 The Southern California Cable Association is a non-profit corporation founded in 1980 to promote and serve the cable industry in Southern California. As the largest and most active local cable association in the country, SCCA's impact extends beyond the Los Angeles five-county area.
 -0- 3/17/93
 /CONTACT: Susan Pasternak of the Los Angeles Area Chamber of Commerce, 213-629-0650; or Barbara Bishop of Southern California Cable Association, 213-891-2822/


CO: Los Angeles Area Chamber of Commerce; Southern California
 Cable Association ST: California IN: ENT TLS SU:


JL-JB -- LA001 -- 7030 03/17/93 12:07 EST
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Date:Mar 17, 1993
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