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PIAC Meeting VI June 8, 1998

Advisory Committee on Public Interest Obligations
of Digital Television Broadcasters

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Opening Remarks | Morning Deliberation | Afternoon Deliberation Minneapolis, MN
June 8, 1998

Welcome and Opening Remarks

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Leslie Moonves, President of CBS Television, opened the meeting by welcoming everyone and thanking Harold Crump, Vice President of Hubbard Broadcasting, for hosting the Committee for this meeting. Mr. Moonves also noted that the meeting was available via the Internet thanks to Rob Glaser of RealNetworks, Inc.

Mr. Moonves also noted that there may be a meeting of the Committee in early August and again in early September.

Norman Ornstein of the American Enterprise Institute, a native of Grand Rapids, Minnesota, also thanked Mr. Crump for his hospitality. He said the goal of the day was to work through a number of issues identified by Committee members and to try to come to some consensus. He noted that members learn a lot from each other during meetings that help refine everyone's thinking. He said he hoped the Committee could move toward drafting recommendations after this meeting.

William Duhamel, President of Duhamel Broadcasting in Rapid City, South Dakota, asked how the first draft would be written and by who?

Mr. Ornstein answered that the NTIA staff was receiving bids from various writers and that they would choose someone to write a first draft. Mr. Moonves noted that a number of writers were brought to the attention of the co-chairs by Karen Edwards of the NTIA.

Committee members were asked to reserve Monday, August 10 for a possible meeting.

Morning Deliberation

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Code of Conduct

Committee deliberations began with a discussion of a possible Code of Conduct for broadcasters. As discussed, a code would be drafted as a recommendation to the National Association of Broadcasters. The code would: be voluntary and include significant and direct public interest obligations contain obligations in four programming areas: Education Public Affairs Localism Minority Interests promote regular public disclosure of public interest activities including: Annual or more frequent reports FCC filings Internet postings

Prof. Cass Sunstein of the University of Chicago Law School chaired the Broadcasting Code Task Force of the Committee and reported on the task force's findings and recommendations. Prof. Sunstein started with a presentation on why the Department of Justice fought the old NAB code on antitrust grounds and how a proposal from the Committee could avoid those issues. In brief, the DOJ challenged the code because of advertising limitations -- limitations that the Committee expressed to desire to re-address.

Using language mainly from the old code, Prof. Sunstein presented a draft of a new code which includes general principles and a rationale for a new code. This opening section notes the role of broadcasters as public trustees and that they have public interest obligations. "The purpose of a code," the draft says, "is to reflect an explicit and voluntary commitment to certain principles, and to ensure that broadcasters generally act as public trustees, and are not penalized in the marketplace for doing what public trustees should do."

The proposed code also includes: Responsibilities Toward Children Covering Elections Treatment of News and Public Events Community Responsibility Coverage of Controversial Public Issues, and Special Program Standards that deal with violent material and anti-social and self-destructive behavior. Although the Committee seemed to reach some consensus on the above items, a section on enforcement authority seemed to cause some disagreement. Prof. Sunstein was asked to research, if possible, how the old NAB code was enforced. Former FCC Chairman Newton Minow also brought up for discussion mandatory NAB membership for broadcasters. He noted that only the best broadcasters are in the NAB and as all brokers are forced to belong to a trade group that regulates their behavior, so too should broadcasters.

Education
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Lois Jean White, President of the National PTA and chair of PIAC's Subcommittee on Educational Programming, made a presentation on the subcommittee's report which begins, "Educational programming is an important national imperative with many new opportunities in the digital era. Digital technology provides additional spectrum capacity that should be used to increase educational and instructional programming, including local, educational, children's and other public interest programming. Both commercial and non-commercial broadcasters should have the discretion to determine how to best implement the increased educational and instructional opportunities in the digital era."

The subcommittee made the following recommendations: Permanently grant analog spectrum to public broadcasters for use in the public interest. Congress should establish and adequately capitalize a permanent trust fund for public broadcasting. The fund should support educational programming for multicast channels, new initiatives, new services to underserved audiences, and local public service programming. The trust fund should be administered by the Corporation for Public Broadcasting with a percentage going to an alternative system of independent producers and programmers. Commercial broadcasters should be required to carry a certain minimum amount of educational programming and should undertake additional obligations as digital television evolves. A broad definition of educational programming should be established that gives broadcasters clear standards and guidance on how to fulfill their public interest obligations. Create financial incentives for commercial broadcasters to do additional educational programming in a multiplexed channel digital era. Establish a "play or pay" option for commercial broadcasters who forgo providing additional educational programming.

There seemed to be general consensus in the Committee to recommend: public broadcasters retain some of the spectrum now used for analog broadcasting this extra capacity be used for primarily educational purposes a $5-6 billion trust fund for public broadcasting be set-up DTV spectrum fees paid by commercial broadcasters be directed to the trust fund.

Afternoon Deliberation

Multiplexing

Mr. Ornstein led a discussion on the possibility o broadcasters providing multiple, advertising-supported video channels (called multiplexing or multicasting). In an outline of core recommendations distributed by Mr. Ornstein, the policy issues concerning multiplexing were addressed: Public interest obligations differ if broadcasters move to true one-for-one exchange -- from existing single analog channel to new high definition digital channel -- than if they move from one analog channel to multiple digital channels, each with its own revenue stream. If broadcasters opt to go beyond two channels, a fourth channel would be set aside for public interest programming, during the hours when broadcasters multiplex. The public interest programming on the fourth channel would be commercial-free and in addition to existing public interest obligations. Broadcasters would be given a choice to 1) run this public interest channel, with a commitment to provide robust programming not just a public access signal or 2) provide funds (a portion of the revenues generated by the third, fifth and other multiple channels) to another entity to run it. Or, in lieu of above, require broadcasters who multiplex (two or more channels) to replicate all public interest obligations (e.g. children's television programming) on all channels.

Jose Luis Ruiz suggested that the "public interest channel" might "ghettoize" public interest programming. Gigi Sohn of the Media Access Project disagreed saying it would give viewers certainty about where to find such shows.

Paul La Camera suggested that this set-up would discourage experimentation and innovation with multiplexing. Harold Crump suggested it would be better to keep public interest programming on each channel.

William Duhamel disagreed with the entire premise that multiplexing demands a different regulatory model. He said the trade being made is just 6MHz for 6MHz of spectrum.

Political Discourse

Mr. Ornstein then addressed how political coverage on television might be improved. The following were suggested as possible recommendations of the Committee: A voluntary commitment by broadcasters to provide candidate-centered discourse 5 minutes a night -- between 5pm and 11:35pm -- for the 30 days before an election. Broadcasters would be free to choose which races and candidates to cover, and to experiment with formats (e.g., a minute of free time for a candidate to speak to voters; a mini-debate; candidate interviews) with equal time rules waived in return for a commitment to fairness. Call on Congress to enact comprehensive campaign reform. As part of campaign finance reform, a repeal of the lowest unit rate in exchange for free time for candidates. Free time would be distributed to parties through the same formula now used for presidential campaign funds. For every 2 minutes of ad time sold to candidates, a broadcaster would give 1 minute of free time, to be split between the parties.

There was also a discussion of an offer reportedly made by NAB President Eddie Fritts. Mr. Fritts was quoted as saying that broadcasters would give two free hours for candidates, if no other time was purchased by candidates. Although Mr. Ornstein and Mr. Minow believed that was a bona fide offer, other Committee members -- mainly the broadcasters -- suggested that that was just a rhetorical flourish.

Mr. LaCamera seemed to show some support for the first item above saying that it was attractive to broadcasters because of the flexibility it offers. Mr. Duhamel voiced some opposition to the item saying that that was 2.5 hrs of "free time."

A Proposal for a Minimum Level of Public Interest Requirements
For All Stations

James Goodman, President of Capitol Broadcasting Company, offered a proposal for minimum public interest standards for all stations. The proposal begins:
"The relationship between broadcasters and the local communities to which broadcasters are licensed always has been the cornerstone of America's system of free, over-the-air broadcasting. Local television broadcast stations are not intended to serve only as conduits for national programming but are intended to respond to the needs and interests of the communities they serve. This attention to localism is the ingredient that separates television broadcast stations from networks, satellite, and cable services. As long as broadcast stations are permitted to use public airwaves, it is not unreasonable for the public, in return, to expect their community needs and interests to be served."

Mr. Goodmon's proposal addresses the following issues: Ascertainment Public Service Announcements Public Affairs Programming Free Political Program Time Accountability Lowest Unit Rate and Reasonable Access Issue Advertising Multicasting "Play or Pay" Public Broadcasting

Mr. Goodmon's presentation focused on the following: Ascertainment: Stations should be required to ascertain a community's needs and interests. This process should be the foundation for the station's news, public affairs and political coverage. The public should be invited to contribute to the process. The process and results would be reported quarterly. Public Service Announcements: Each station would be required to air 150 public service announcements per week spread evenly through all day parts. An emphasis should be put on PSAs produced in cooperation with local groups and 50% should be locally produced. Public Affairs Programming: Each station should provide two hours of public affairs programming per week. One hour should be aired between 6pm and midnight. Half of this programming should be locally produced and address local issues. News programs and portions of news programs would not be counted towards this programming requirement. AccountabilityAccountability: 1) On a quarterly basis, stations would broadcast a program that reports to the community on the station's ascertainment results as a part of the two-hour local public affairs programming commitment. 2) Stations would keep quarterly public files that document A) How they conduct their ascertainment process and the results, B) Their performance in meeting the minimum requirements for public affairs programs, C) Their performance in meeting the minimum requirements for public service announcements, and D) Their performance in meeting the requirements for free time for political candidates.

Mr. Goodmon joked that his aim was to upset "both [Ms. Sohn] and the free market people." None of the other broadcasters supported the proposal. Mr. Duhamel expressed strong opposition. Robert Decherd said that broadcasting does not need to be regulated and he would not support a mandate from the government to perform the above. Mr. Crump said that he is not opposed to realistic minimums, but he was more supportive of voluntary actions rather than mandates. Mr. La Camera suggested a mandate like this would be opposed in court.

Ms. Sohn said she was not upset with the proposal, but felt that perhaps it does not go far enough. She said the broadcasters on the Committee probably already out-perform Mr. Goodmon's proposal. The question is for the stations that do not -- her aim is to raise the "license renewal bar" for those stations.

Mr. Crump said that broadcasters feel that they have been relived from regulation in the past because of the good job they have done. They do not feel there is a reason to "re-regulate." "We remember the good," he said speaking to public interest advocates. "You just remember the bad." Peggy Charren said that we cannot just cross our fingers and hope for the best. She recalled that when she started advocating for children's television she naively believed that all she had to do was talk to broadcasters and tell them how important quality programming for kids is. Only after opposition did she think they was a reason for FCC regulation and then legislation from Congress.

New Model of Public Interest Obligations

The Committee also discussed the following possible recommendations: Endorsement of idea that digital age requires flexibility by regulators and broadcasters alike. Call on Congress, FCC and White House to consider new model for public interest obligations in the digital age. The "Play or Pay" Alternative: allow broadcasters choice to maintain existing framework, to get waiver of certain public interest obligations in return for a fee, or to have some ability to trade obligations with other broadcasters. Any fees collected should be directed to enhance the public interest.

Public Comment

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Return to President's Advisory Committee Page

NOTE: This is an unofficial summary of the proceedings of June 8, 1998. For at the NTIA.
Committee's Offical Web Page
(Operated by NTIA)

Committee information, meeting minutes, and documents produced by the Committee are available at this site and can also be obtained by mail, by calling 202-501-6195, or by written request to
Karen Edwards
Advisory Committee on Public Interest Obligations of Digital Television Broadcasters
NTIA - Room 4716
Department of Commerce
Washington, DC 20230

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Last updated: 12 June 1998