Equity Broadcasting Prevails in Arbitration Against Paxson
Communications
Broadcaster Will Terminate All PaxTV Network Programming in St. Louis,
Montgomery & Panama City This Sunday
LITTLE ROCK, Ark., Aug. 27 /PRNewswire-FirstCall/ -- Equity Broadcasting
Corporation, the nation's ninth largest television broadcast station group,
announced today that a three member arbitration panel ruled in its favor in an
ongoing arbitration proceeding with Paxson Communications Corporation
(AMEX:PAX). The Panel ruled that Paxson breached "most favored nations"
provisions in Equity/PaxTV network affiliation agreements by failing to offer
amendments that would have shortened the ten year agreements to two years, and
the Panel exempted Equity from broadcasting PaxTV infomercial and religious
programming since 2001. The Panel further ruled it would hold a hearing later
this year to determine Equity's damages resulting from PaxTV's breach.
Equity also announced that as of midnight August 29, it will cease broadcasting
PaxTV programming on the three stations directly affected by the Ruling -- WPXS
in St. Louis (DMA # 21); WBMM in Montgomery, Alabama (DMA # 115); and WBIF in
Panama City, Florida (DMA #158). Equity has also notified Paxson that it will
cease broadcasting PaxTV on KWBS in Springfield, Missouri (DMA #78) and Fort
Smith-Fayetteville, Arkansas (DMA #107), a station that was not involved in the
arbitration directly, but which is subject to termination on the same basis as
are the other three stations.
PaxTV, the so-called "seventh network", was launched in 1998 with a promise to
provide twenty four hours a day of quality family-oriented programming free of
excessive violence, explicit sexual themes and foul language. Unable to garner
viable ratings for its schedule of low budget original programming and
late-cycle syndicated programming, in January 2003, PaxTV increased its
infomercial and paid programming to more than half of its broadcast day.
"The Panel's ruling means that we can terminate PaxTV in these markets, and
focus on rebuilding these stations to better serve our viewers." Said Larry
Morton, Equity's Chairman and CEO. "These stations represent more than 2% of
US television households. Not being locked into long term PAX affiliations
should significantly improve Equity's position in these markets." "Last week, Paxson's Chairman criticized NBC for failing to abide by the 'plain
meaning' of 'clear and unambiguous terms' of an agreement," said Jeff Sanders
of Seyfarth Shaw in New York, Equity's counsel in the arbitration. "It is
somehow fitting that the Panel's ruling here is based on the conclusion that
Paxson failed to honor the unambiguous language of its own affiliation
agreements." About Equity Broadcasting Corporation Equity Broadcasting Corporation has become one of the fastest growing broadcast
companies in the United States. Since 1997, the company has dramatically
increased its broadcast holdings and vaulted into the enviable position of
being one of the 10 largest broadcast companies in the country. For more
information on Equity Broadcasting Corporation, please visit the company's Web
site at http://www.ebcorp.net/ . DATASOURCE: Equity Broadcasting Corporation CONTACT: Jeff Sanders of Seyfarth Shaw, +1-212-218-5280, Web site: http://www.ebcorp.net/
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