Capital Cities-ABC Agreement Surprises Hollywood

An announcement Monday that Capital Cities Communications Inc. has reached agreement to take over American Broadcasting Cos. surprised much of the Hollywood television community, but producers and studio executives were guardedly optimistic that a change in ownership would not drastically alter their business dealings with the TV network.

“I don’t think it will have any significant impact on the production community,” said Lawrence Gershman, president of the television division at MGM/UA Entertainment Co. “Cap Cities is a very bright stations operator; one would have to assume that they will be very intelligent network operators as well.”

Paul Junger Witt, one of the executive producers of ABC’s prime-time comedy series “Benson,” said he does not know the people at Capital Cities but believes that the takeover looks promising.

“My instinct is that broadcasting periodically needs an infusion of new people, new thinking, new vitality,” he said. “It’s basically been the same three networks under very similar management for all these years. This kind of change has been healthy in other industries; I see no reason to think that it won’t be the same in this one.”

Some executives contacted said that they were too surprised by the news and too unfamiliar with Capital Cities to comment. But those who have had dealings with the company, particularly by selling programs to its TV stations in the syndication marketplace, spoke highly of the company.

“Capital Cities is one of the best operated broadcast companies in the country,” said Richard Frank, president of the motion picture and television divisions of Walt Disney Productions and formerly head of TV at Paramount. “They have managed to get very good ratings while being very cost conscious.”

“I think it’s a top-notch operation,” said Michael Lambert, executive vice president of domestic syndication at 20th Century Fox. “I’m very impressed with them.”

Despite Capital Cities’ reputation for keeping a tight rein on costs, producers and studio executives said that they do not expect dramatic changes in the way the ABC-TV network deals with its Hollywood program suppliers. Operating stations and operating networks are different businesses, they emphasized.

For one thing, Frank noted, ABC already has taken a leadership role in trying to keep production costs down on its entertainment programs.

“If they go much further, people are going to start taking their shows elsewhere,” he said. “It’s a very thin line to walk; you don’t want to get to the point where you encourage producers to come to you last (with their projects).”

For another thing, said Stephen J. Cannell, whose independent company produces the prime-time series “Hardcastle & McCormick” for ABC, the network’s current third-place standing in the prime-time ratings race precludes major economic cutbacks in programming.

“I think it’s going to be difficult for ABC to pull itself out of its current predicament without spending some money to get there,” he said.

Producer Aaron Spelling, who has an exclusive contract with ABC and is its leading supplier of prime-time programming (“Dynasty,” “The Love Boat” and “Hotel,” among others), could not be reached for comment.

“If anything,” Fox’s Lambert said of the takeover, “I would think that it would present an opportunity for producers in this community. The injection of a management team from a company that has operated as a true affiliate . . . means they will be bringing a station perspective to the business. . . . So as a company, it may be more sensitive to the needs of individual stations. It may take a look at a wider circle of suppliers and maybe at taking some more chances.”

At ABC’s rival networks, meanwhile, reaction was official muted. CBS had no comment and NBC said only that “they’re both excellent, well-managed companies, and we wish them well.”