Turner 'Eulogy' Shakes Up Cable Industry.

TED Turner delivered a eulogy for the industry and his own career as cable TV's top programmer for 25 years. He didn't mince words.

Although he is one of the largest individual shareholders and vice chairman of AOL Time Warner Inc., Turner said he has been "fired" by Chief Executive Gerald Levin. He was stripped of operational authority when AOL acquired Time Warner early this year. The Wall Street Journal has reported that Turner won't seek a new contract when his employment agreement expires at the end of this month.

During a recent industry conference, Turner delivered a searing assessment of industry consolidation, fellow moguls and AOL Time Warner that will go down in history, literally. His remarks were videotaped for a cable-TV museum's oral history project.

Among Turner's predictions: Failure to acquire a major broadcast network will ultimately result in AOL Time Warner becoming a "marginalized player."

"I'm not satisfied being with a second-rate operation. In a way, Jerry's done me a favor' said Turner, noting that he has stepped up his philanthropic spending, giving away $250 million last year. "Wouldn't it be terrible to hang on to every nickel like (News Corp. Chairman) Rupert Murdoch and -- who's the guy with Viacom? My good friend, Summer Redstone," he said.

Paying audience

Turner was interviewed by CableFax founder Paul Maxwell, at the behest of the Cable Center of Denver. His comments were the talk of the Western Cable show in Anaheim, where attendance fell 48 percent from last year.

"The end game is just about here; within the next year, there will only be two cable operators and one satellite operator," Turner said. "The industry is going to be part of a big telecommunications industry but it's not the cable industry anymore."

There was a time when Turner was dismissed as the "Mouth of the South," but industry executives and investors learned that Turner is as earnest and beguiling as he is provocative. He won respect for creating more cable networks -- including Cable News Network and the Cartoon Network -- than any other entrepreneur. Turner Broadcasting System Inc. was valued at $12 billion by the time he sold the company to Time Warner Inc. in 1996.

Turner said he had wanted to acquire a major broadcast network to gain purchasing power for big events like the Olympics, the Academy Awards or the National Football League.

Regrets

"The biggest mistake I ever made -- and (former cable executive John) Malone told me not to do it -- was bringing Time Warner into the consortium of cable operators when we needed to pay down the debt we incurred when we acquired MGM," Turner said, alluding to a financial rescue in the mid-1980s.

"I knew we were selling out. I didn't know what the consequences would be. I never thought in my wildest dreams that I would actually lose my job," Turner said. Nevertheless, his conviction that he would never be permitted to buy a major network contributed to his decision to sell to Time Warner.

Turner described how cable-TV operators put him up to the idea of launching a free Cable Music Channel in 1984 in order to give them bargaining power with MTV, which was demanding huge rate hikes. As soon as more attractive terms were negotiated with MTV, Turner canceled his fledgling network.

"We had served our purpose. We built up a lot of goodwill on the part of people like Malone and the other big cable operators who felt like they were being screwed by MTV, so they'd carry our services," Turner said.

Indeed, Turner appeared to be evening some scores with his videotaped oral history. "The new management at AOL Time Warner cable systems doesn't share his commitment to pro-social programming.

Turner said Levin is "basically a good person," but he was startled when Levin once described him as his best friend. Turner said "'Jerry, I've never even been in your home. If I'm your best friend, who's your second-best friend?"'

"Nick Nicholas" was the reply, according to Turner, drawing laughter from those who recall that Levin became chief executive of Time Warner in 1992 when Nicholas was ousted.

Turner says he values his family, his vast land holdings and a venture that will attempt to sell Bison burgers provided by his own herds. A member of the audience asked whether Turner might run for office. "I've thought about that. I think I'm probably too burned out and too old for it," he said. "I don't mind going to Washington to lobby but I don't want to have to live there. The White House is only on about five acres. That's too small for me."

No kidding. Turner is a man who requires some elbow room.

Kathryn Harris is a columnist with Bloomberg News.