Cable TV: Leased Access

Leased access means one thing to the independent videomaker--opportunity. No other "institution" offers such a great outlet for viewership, profit and personal satisfaction. Finally, one-person production companies have the means to broadcast their work to the masses. And, most importantly, the means to reach these masses in a reasonably affordable manner.

For those still in the dark on leased access, here's a little history. Leased access is a government ruling that says cable systems around the country must, if they meet certain specifications, provide channel capacity at a reduced "leasing" rate. This cost comes from a formula (see sidebar for details) that takes into account the number of viewers in the cable system, their rates, and the length of time of the leasing period. Usually sold in half-hour units, leased access time around the country generally costs anywhere from $50- $100 for a 30-minute block. So for less than the cost of a new pair of sneakers, you can command the airwaves, potentially cablecasting your message to tens of thousands of viewers.

So far so good, right? Well, I saved the best for last. Not only does leased access availability allow videomakers a showcase for their work, it also allows this activity in a commercial atmosphere. Unlike public access and the other government television involvement, leased access rules state that commercial material within the programming is fair game. In other words, you can sell advertising time within your show.

Unfortunately, like any program that comes to the aid of those in need, leased access has its detractors. Who are these folks wanting to impede the progress of videomakers nationwide? Believe it or not, they're the cable system operators themselves. Admittingly, they do stand to "lose" the most in the deal. Giving up channel capacity for low-budget, semi-pro productions that may interest only a small percentage of the systems' subscribers can't be an attractive proposal.

Nor is the fact that they must now deal with the producers on a personal level. Programming for leased access won't be coming via satellite downlink or distribution cassette. It will be walking in the door, videomaker extraordinare attached. And don't think for a second this indie producer won't be full of questions about airtimes, preferred formats, commercial insertion and a hundred other variables of the broadcast. These questions may push a cable employee to the limits of his patience. Cable systems want leased access on their system about as much as you would want a tripod with one non-tightening leg.

This is not just a sour-grapes discussion. I make the above statements based on personal experience, as well as the experience of others. Stories of unfair rates, unavailable air times, uncooperative technicians and general bullying run rampant in leased access circles. Consider yourself warned!

Don't assume that all cable system operators are out to stop leased access. Some leased access producers have found success with their local cable stations. Take Donice's Home Shopping Channel, for example. It's one of the first home shopping programs created exclusively for use on leased access. Nobody ever said anything about not using leased access in this manner, so why not? In fact, in Section 612 of the FCC Report Concerning Leased Access actually describe these types of programs specifically.

According to the government paper, lease programmers fall into three groups. The first are those seeking to charge subscribers in a pay-per-view environment. Second are home shopping types. In this category, more than 50% of the leased cable time is used to sell products directly to customers. The final group is a catch-all for educational, community and non-profit minded affairs. Rudy Dyson, creator of Donice's Home Shopping Channel, found success behind door number two.

"I had experimented with local access for a bit. It gave me some insight on the workings of cable," says the Los Angeles-based entrepreneur. "When I heard about leased access, my mind starting working. I knew home shopping was becoming more popular everyday. It appears like everything's a bargain. I've also always been intrigued at how well the classified ads and weekly shoppers do in selling products. So I immediately thought, why not merge the two? Classified shopping television was born in Los Angeles."

Dyson's first show, Donice's Second-hand Home Shopping Hour was the genesis of his current program. In it, people who had something to sell would buy classified space much like in a newspaper. Only this time, their product appears on TV. Dyson made his profit by selling parts of the hour for more than the whole was worth. "Basically, it was a swap meet on the air," continues Dyson. "The hometown appeal of the program garnered its initial audience. But it became too labor intensive for the money. I had to run all around town taping people's cars or stereos or whatever. The show had a following, but for what I was making, it was too hard to produce. I knew there had to be an easier way to do it."

Thus Dyson entered his second step of home-shopping mogulism. "With the new show, all we do is sell new product. It's run just like the shopping networks you see elsewhere, QVC and HSN. I've found sources for merchandise where I don't have to inventory the product. Accepting credit cards helps too. It makes it easy for the people to buy," he says.

Donice's doesn't accept just any credit card, though. Dyson has created his very own, and that's where the profit comes from. "We make instant credit available to anyone, providing they meet one of our requirements. The person must have another credit card or own real estate. If they do, an application is filled out and a card is issued." This "instant credit" is what made Dyson's show take off. "If it's a hassle, there'll be no sales. People like to use credit. They see something they like. They call. It's theirs. And I make much more money in financing than I did with the straight sales. Why do you think all the major stores have their own credit cards? It's the same principle," says Dyson.

Greg Blubaugh is tackling leased access from a different angle. Honing his video expertise in small town America, Blubaugh discovered leased access through a conversation with a local state representative. "At a city parade I happened to be videotaping for a college course, I got to interview a state representative who lived in neighboring Akron. He was something of a video nut himself, expressing interest in the pro-level equipment I was using. We got to talking and he informed me of leased access." Blubaugh's small town didn't offer leased access, but the close-by Akron cable system did.

"I've been shooting video on a variety of topics: documentary stuff on children and violence, informational programs on the schools in our area, mostly educational shows," Blubaugh says. "Most I did as assignments in college, but sometimes I would produce these shows on my own, in the hopes of someday finding an audience. I could always show them to the groups involved, but that audience was never large enough. With leased access, I can now reach thousands of people. Whether they're watching or not is still a question. But at least I know it's available to everyone in the cable system."

Blubaugh is just starting to experiment with the commercial side of leased access. In the past, Blubaugh simply paid the leased access fee and placed his programming on the air. Now he's got dollar bills in his eyes. "I'm trying to convince several interior decorators in the area to sponsor a home decorating program," he says. "There are plenty of design houses, furniture stores and wallpaper/paint shops in the city. If I can gather three or four, give them each 15 minutes of airtime to explain a design idea, I'll have an hour program that should be pretty interesting to a wide number of people. Plus, I'll be able to cover the cost of the airtime and make money."

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