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PIAC Meeting VI June 8, 1998Advisory 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.
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.
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
James Goodman, President of Capitol Broadcasting Company, offered a proposal for
minimum public interest standards for all stations. The proposal begins:
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.
NOTE: This is an unofficial summary of the proceedings of June 8, 1998. For
at the 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 This page provided by: www.benton.org/Policy/TV/meeting6.htmlAfternoon Deliberation
For All Stations
"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."Public Comment
Read full text of all the public comment.
Committee's Offical Web Page
(Operated by NTIA)
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

