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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) CORPORATE MEDIA PARTNERS, ) d/b/a AMERICAST, AMERITECH ) MEDIA VENTURES, INC., BELLSOUTH ) INTERACTIVE MEDIA SERVICES, ) INC., GTE MEDIA VENTURES ) INCORPORATED, and SNET ) PERSONAL VISION, INC. ) ) v. ) CSR-5235-P ) FX NETWORKS, LLC, ) ) FOX/LIBERTY NETWORKS, LLC, and ) ) TELE-COMMUNICATIONS, INC. ) ) Program Access Complaint ) MEMORANDUM OPINION AND ORDER Adopted: April 22, 1998 Released: April 24, 1998 By the Acting Chief, Cable Services Bureau: 1. Corporate Media Partners, d/b/a Americast ("Americast"), and its telephone company partners, Ameritech Media Ventures, Inc., BellSouth Interactive Media Services, Inc., GTE Media Ventures Incorporated, and SNET Personal Vision, Inc., each a distributor of multichannel video programming, filed the above-captioned program access complaint against FX Networks, LLC ("FX"), Fox/Liberty Networks, LLC ("Fox/Liberty"), and Tele-Communications, Inc. ("TCI") alleging that FX has refused to provide its programming to Americast or even negotiate a programming contract with Americast on the grounds that FX has exclusive programming agreements with incumbent cable operators nationwide. Americast alleges that FX's refusal to deal with Americast regarding such programming violates the Commission's prohibition on exclusive contracts pursuant to Section 628(c)(2)(D) of the Communications Act of 1934, as amended ("Communications Act"), and Section 76.1002(c)(2) of the Commission's rules. Americast also alleges that FX's action in this matter constitutes an unreasonable refusal to sell in violation of Section 628(c) of the Communications Act and Section 76.1002(b) of the Commission's rules and an unfair practice in violation of Section 628(b) of the Act and Section 76.1001 of the Commission's rules. 2. In response, FX filed a "Motion to Consolidate and Expedite Consideration" and Answer requesting that the Commission consolidate its review of the instant program access complaint filed by Americast with the program access complaint filed by EchoStar Communications Corporation on November 24, 1997, FCC File No. CSR-5165-P, and expedite consideration of the consolidated proceedings. FX states that the Americast complaint filed against FX makes essentially the same allegations as those made in the EchoStar complaint against FX. 3. In its recent Memorandum Opinion and Order, the Commission granted EchoStar's complaint against FX, finding that FX's actions violated the prohibition on exclusive contracts pursuant to Section 628(c)(2)(D) of the Communications Act and constituted an unreasonable refusal to sell to EchoStar pursuant to Section 628(c). As acknowledged by FX, the facts and circumstances surrounding Americast's complaint are materially indistinguishable from those examined by the Commission in the EchoStar proceeding. FX offers no additional legal justification for its conduct. Consistent with our findings in the EchoStar proceeding, we find that FX is a vertically integrated programmer, subject to the program access rules. We also find that, based on the record, FX's enforcement of an exclusive contract violates the prohibition on exclusive contracts in Section 628(c)(2)(D) of the Communications Act and that FX's refusal to sell violates Section 628(c) of the Communications Act. Likewise, as in the EchoStar proceeding, in light of our findings herein, we find it unnecessary to address Americast's allegations regarding Section 628(b) of the Act. 4. Accordingly, IT IS ORDERED that the program access complaint filed by Corporate Media Partners, d/b/a Americast against FX Networks, LLC, Fox/Liberty Networks, LLC, and Tele-Communications, Inc. IS GRANTED and FX Networks, LLC is required within 45 days of the release of this Order to make its programming available to Americast for distribution over its video systems on nondiscriminatory terms and conditions. IT IS FURTHER ORDERED that the "Motion to Consolidate and Expedite Consideration" filed by FX Networks, LLC IS DENIED with respect to consolidation and IS GRANTED with respect to expediting the matter as it pertains to Americast. 5. This action is taken by the Acting Chief, Cable Services Bureau, pursuant to authority delegated by Section 0.321 of the Commission's rules. FEDERAL COMMUNICATIONS COMMISSION John E. Logan Acting Chief, Cable Services Bureau