FCC Planning New Giveaway to Networks and Broadcasters Worth Billions

[MORTARDUDE]

http://www.democraticmedia.org/news/fccMustCarry.html

FCC Planning New Giveaway to Networks and Broadcasters Worth Billions
GOP-run Commission May Approve in December a Plan that Further Harms Public Interest
FOR IMMEDIATE RELEASE
November 12, 2003

Contact: Jeff Chester, Center for Digital Democracy (202) 494-7100

Washington, DC: The Federal Communications Commission may soon approve a policy that would benefit the four major broadcast networks at the expense of the public interest. CDD has learned that at their next (December) meeting, the FCC could approve a new plan that is at the top of the broadcast lobby?s political agenda: a proposal that would enable each TV station to broadcast multiple interactive channels over cable systems. But the commission has thus far refused to require that broadcasters commit to a public interest ?quid pro quo ? in return, essentially giving the broadcasters the key to a digital ?Fort Knox? free of charge. Chairman Powell appears to be willing to appease his two Republican colleagues by voting for this measure, rather than risk the embarrassment of siding with his critics.

Known as digital multicasting must-carry (and included in such FCC dockets as 98-120, 99-360, and 00-167), the plan?like the Commission?s controversial media ownership policies?is being debated behind closed doors by some of the country?s most powerful media giants, including Disney/ABC, Comcast, and the National Association of Broadcasters (NAB). Broadcasters claim that only with this new special-interest decision will ?free TV? survive, an issue that has roused the sympathy of Chairman Michael Powell (as has the ?transition? to digital TV). According to a recent lobbying document filed by Paxton Communications, for example, ??the only way to ensure the long-term viability of over-the-air broadcasting is by requiring full digital must-carry now.? As in the past, broadcasters are promising to provide new public interest programming if they are able to receive an additional special interest benefit.1 But their track record of fulfilling such promises is very poor indeed?the broadcast lobby has long opposed ?free time? for political debates and educational programming for children, for example. Now they oppose the FCC requiring new public interest obligations as part of the digital give-away.2 As for broadcasters being in financial harm, the four companies controlling the major broadcast networks generated more than $23 billion in 2002, with TV industry revenues almost $34 billion.3 With this impending FCC decision, the broadcast networks and station groups would also receive a new form of ?digital retransmission consent? that would bring them billions of dollars worth of additional cable channels as well.

?Before the FCC decides on any new must-carry rules, it must first finish a proceeding on public interest obligations for digital broadcasting,? said Jeff Chester, CDD?s executive director. ?The public deserves a meaningful dividend in terms of measurable services, such as free time for civic discourse, increased public affairs and children?s informational programming. Community groups should also benefit from the two-way broadband pipe that broadcasters were given as a result of their lobbying Congress in the 1996 Telecommunications Act. Only after such a proceeding, should the issue of must-carry can be legitimately discussed.?

Chester also noted that public television is lobbying for such must-carry rules. ?While it is understandable that some FCC Commissioners may wish to aid PBS, they shouldn?t endorse a huge broadcast bonanza without first protecting the public interest for all viewers,? he said.

The cable industry is opposed to this proposed FCC plan, with channels such as C-Span, Discovery, and even the Weather Channel recently lobbying the FCC. CDD believes that cable arguments that the FCC can?t or shouldn?t require carriage of public interest programming is a specious one. ?It should not be a question of whether the FCC caves in to one special interest or another?in this case broadcasters versus cable. The FCC?at least this time?should act as if the public interest really mattered,? said Chester.

CDD has urged the public to contact Chairman Powell , other members of the FCC and Congress to express their opposition to this plan. To get involved, visit CDD's take action page.

Notes:

1 Filing of Paxson Communications, FCC Docket 98-120, Oct. 1, 2003.
2 Filing of NAB, FCC Docket 99-369, April 21, 2003.
3 ?100 Leading Media Companies,? Ad Age Special Report, Aug. 18, 2003.