Regulation of Broadcasting, Cable,

1
Regulation of Broadcasting, Cable, Satellite

• Chapter 12

2
Regulatory Climate Characteristics

• FCC De-Regulation

• Mega-Mergers

• Media Convergence

3
Categories of Media

• Print least regulated

• Broadcast most regulated

• Cable, Satellite hybrids

• Common Carrier required access

4
Origin of Broadcast Regulation

• Radio was a hobbyists toy

• But also a matter of life and death
• Republic and Florida collide in January, 1909

• 1500 lives saved by radio SOS
• Wireless Ship Act of 1910
• Radio Act of 1912
• Industry itself demands more regulation

5
Radio Act of 1927

• Gives federal government right to license
• Establishes public trustee model
• Created Federal Radio Commission
• Replaced by Federal Communication Act of 1934

6
The FCC Structure

• 5 Commissioners serve 5 year terms
• No more than 3 from one party

7
The Commissioners (as of 8/07)
Kevin J. Martin (Chair)
Michael J. Copps
Jonathan S. Adelstein
Robert M. McDowell
Deborah Taylor Tate
8
The FCC Procedures

• Notice of Proposed Rule Making NPRM
• Public comments comments upon comments
• Report and Order
• Actions against individual stations require a
  pattern of abuse
• Letter of Inquiry
• Notice of Apparent Liability
• Cease and Desist Orders
• Fines
• Probationary License Renewal
• License Revocation

9
Ancillary Powers Doctrine

• Federal Communication Act gives FCC authority
  over individual licensee holders interstate
  dealings
• Courts have extended this power to
• Networks
• Cable
• Intrastate Signals

10
Treat broadcast differently?

• Scarcity of Spectrum
• Pervasiveness/Intrusiveness
• Watching TV v. Reading a specific book
• The need to protect children

11
Licensure Ownership

• Requirements to own a station
• Good character
• US citizen, or 75 US ownership
• Technical expertise
• Financial stability (3 months worth)
• May not reach more than 35 of TV households
• NO absolute limit on number of stations
• NO limit on radio stations at all
• Affirmative Action requirements virtually gone

12
Technological Advances

• HDTV
• Licensees given a second frequency
• Switch to digital to be finished by 2009
• Closed Captioning
• New Programs captioned as of 2006
• Descriptive Video Services
• Congress takes a more cautious approach
• FCC tried to require modest amount of DVS
• D.C. Circuit Court refuses

13
Candidate Access Rule

• Federal candidates may buy time, cheaply
• Stations may refuse to sell long spots
• Does not require giving time
• Stations know they should make believe rule
  applies to candidates for all offices

14
Equal Time Rule (Section 315)

• Candidates use of airtime must be equal
• Stations may not censor content
• Applies to all offices

A presidential run by former senator Fred
Thompson would result in his old movies and Law
and Order re-runs triggering the rule.
15
When are you a candidate?

• Publicly Announce
• Qualified to hold the office
• Meet filing requirements
• Party nomination, or substantial showing

16
Not all uses count

• Regularly scheduled interview programs
• Incidental appearances on documentaries
• Political Debates
• News coverage

Governor Arnold Schwarzenegger 2007 appearance on
The Tonight Show did not trigger rule
17
Regulation of Sexual Speech

• Section 1484 bans broadcast of obscenity
• Also prohibits indecent broadcasts
• No SLAPS test
• Need not be judged as a whole
• Need not appeal to prurient interest
• Congress raises per incident fine tenfold in 2006
• Leading case is FCC v. Pacifica
• Safe Harbor 10PM to 6 AM
• Janet Jacksons wardrobe malfunction changes
  climate

18
Childrens TV

• Childrens TV Act, and FCC regulations
• Mandate 3 weekly hours of educational programs
• FCC fines Univision 24 million for fudging
• Fed law also limits commercials on kid TV
• Program length commercials permitted
• No commercials for Toy X on program featuring Toy
  X
• V chips required by 1996 Act
• Very few parents use them

19
Public Broadcasting

• CPB must justify continued funding
• Special Rules on PBS/NPR
• Objectivity to characterize every program
• Underwriting, not commercials
• May not endorse candidates

20
Cable TV

• Began in 1940s to get TV to rural areas
• Presented a regulation problem
• Not exactly like print
• Needs govt permission to lay cable
• Not exactly like common carrier
• Makes editorial decisions
• Not exactly like broadcast
• Does not need to use the public airwaves
• Courts at first backed FCC
• Then began to rein in the Commission

21
Cable Act of 1984

• Gave cities explicit rights to regulate
• They could require certain kinds of access
• Public/Educational/Govt PEG
• Leased Access
• But they could not demand a specific service
• Redlining prohibited
• Gave cable companies rights too
• Renewal Expectation
• Limit on franchising fees

22
The Cable Television Consumer Protection
Competition Act of 1992

• Reimposed FCC control over rates
• Set clear guidelines for customer service
• Answer phones in 30 seconds
• Maintain presence 24/7
• Install within one week
• Refunds for outages
• Ownership limits struck down
• Warner Entertainment v. FCC (2001)

23
Telecommunication Act of 1996

• Cable, local and long distance telephone, now
  able to compete in each others markets
• Result seems to have been merger mania

24
Cable the First Amendment

• TREATED LIKE PRINT
• Laws against indecent speech usually struck down
• Denver Area (1996)
• Playboy Entertainment (2000)

• TREATED LIKE BROADCAST
• Equal Time Rule
• Candidate Access Rule
• Closed Captioning

25
Must Carry rules

• 1992 Act gave broadcasters a choice
• Either insist on free carriage OR
• Negotiate to be paid for the right to be carried
• PBS treated differently
• Must be carried
• First Tier
• No payment to station
• Upheld in Turner v. FCC (1997).

26
DBS

• DirectTV and Echostar biggest names
• Direct broadcast from satellite to home dish
• Unclear how to regulate
• No real local presence
• So what community should they serve?
• Candidate Access, Equal Time Rules apply
• Carry one, Carry all rule