Cable operators compete on technological advances like faster broadband speeds and VoD, not exclusive programming, industry analysts said. That could inform how the industry approaches an FCC review this year of program access rules (CD Feb 22 p5), said industry lawyers. Cable operators are focusing on offering more services such as broadband and VoIP, Sanford Bernstein analyst Craig Moffett said: “Broadband is emerging as the cornerstone of the consumer bundle.” Some pay-TV lawyers continue to push for access rule changes.
Cable operators compete on technological advances like faster broadband speeds and VoD, not exclusive programming, industry analysts said. That could inform how the industry approaches an FCC review this year of program access rules, said industry lawyers. Cable operators are focusing on offering more services such as broadband and VoIP, Sanford Bernstein analyst Craig Moffett said: “Broadband is emerging as the cornerstone of the consumer bundle.”
A proposed record FCC kids-TV fine probably doesn’t mean the start of a crackdown on stations breaking educational and informational programming rules, said current and former FCC officials and industry lawyers. Chmn. Martin’s pursuit of a $24 million penalty against Univision (CD Feb 27 p3) seems to be an isolated event, they said. Univision’s need for FCC approval of its $13.7 billion sale gave Martin a chance to make an example of the company, since the agency can tie agreement to pay the fine to greenlighting broadcast license transfers, said lawyers. The penalty, if approved by an FCC vote, would eclipse the previous record fine of $9 million against Qwest, said an FCC official.
A proposed $24 million kids-TV fine against Univision raised First Amendment worries among some industry officials because of concern that the Commission would overstep its bounds in setting the record penalty. The consent decree between the broadcaster and Chmn. Martin appears to amount to the regulation of programming, said broadcast and other lawyers. They said broadcasters have wide latitude in determining which programs are educational shows under the 1990 Children’s TV Act.
The FCC media ownership review may run longer than expected (CD June 26 p5), said agency and industry officials. A vote on a final order may not come until 2009. Among steps Chmn. Martin vowed to take before an order makes the 8th floor rounds are 4 field hearings on ownership, 2 localism hearings, a report on broadcast localism and 10 economic studies. His Feb. 1 declaration to a Senate Commerce Committee hearing that he hopes to finish media hearings this year spurred industry and FCC speculation that an order may not come before the 2008 election. Media activists and broadcasters had predicted the rulemaking would be wrapped up by mid-2008.
Broadcasters have varied positions on leasing digital multicast spectrum to 3rd-party programmers, officials said: Some see leasing as another way to profit on digital signals, others want to develop additional original programming. “If it makes sense from a business opportunity, we would certainly look at it,” a broadcast official said of leasing: “The whole industry is looking at ways to capitalize on that opportunity.” Meanwhile, FCC Chmn. Martin has revived the multicast must-carry debate, recasting it around broadcaster leasing of digital spectrum to eligible 3rd-parties, though details are scant. The plan isn’t good for broadcasters or cable, said another industry official.
The FCC should revoke the license of Entercom’s KDND(FM) Sacramento because a Jan. 12 contest the station ran seemed to cause an entrant’s death, her survivors said. That argument is backed by Royce International Bcstg., a competitor trying to block Entercom’s bid to buy 15 CBS radio stations. Trying to win a Nintendo Wii game KDND was giving away, Jennifer Strange, 28, died of hyponatremia, “which is essentially death by ‘water intoxication'” after drinking a large amount of water and not urinating, lawyers for Strange’s family wrote FCC Chmn. Martin Mon. Strange’s 2nd- place prize: Tickets to a Justin Timberlake concert. KDND executives urged staffers to press contest entrants to drink copiously even though they felt sick, the family’s letter said: “Despite [Strange] having a distended abdomen and complaining of significant symptoms of a headache and lightheadedness, the radio station allowed her to leave the premises without any type of assistance… A ‘death penalty’ of this nature to a radio station would send a clear message to radio station owners that this type of behavior is unacceptable.” Strange drank 224 oz. of water, said Royce. That’s more than triple what doctors recommend as daily intake. Royce alleged disc jockeys ignored a nurse practitioner’s warning that the contest was dangerous. Strange’s stomach was so full a DJ said she looked pregnant, Royce said. KDND has canceled the program on which Strange appeared as a contestant, Gen. Mgr. John Geary said in a written statement. “The circumstances regarding this matter are being examined as thoroughly as possible,” he said. The FCC likely will consider the family’s complaint as an informal objection when deciding on the KDND license, which FCC records indicate is up for renewal, said Media Access Project Pres. Andrew Schwartzman: “Typically the Commission likes to fine people” instead of denying license renewals, “but the principle in a renewal is the Commission has to look at all of the information in its possession pertaining to the licensee.” - JM
The FCC Media Bureau published late Fri. a slew of draft media ownership studies and staff reports sought by a Freedom of Information Act (FOIA) request by Georgetown U.’s Institute for Public Representation (CD Dec 17 p16). The Commission is allowed to withhold the reports but due to its “current consideration of the media ownership rules and the very strong level of public interest in this proceeding,” it posted the 47 documents to www.fcc.gov/ownership/additional.html, the Media Bureau said.
The FCC is unlikely to grant petitions to deny TV license renewals to 28 stations in 3 markets if recent history is any guide, said a lawyer for groups asking the FCC to act based on claims the broadcasters aired little local political news (CD Dec 27 p6). In the latest petition to deny, Ore. Alliance to Reform Media asked the Media Bureau to designate licenses of 8 stations in and around Portland, Ore., for a hearing before an administrative law judge. The FCC hasn’t taken that step for at least a decade, said attorney Andrew Schwartzman. If the bureau decided a petition merited a hearing, it would likely seek a vote of the full Commission, even though it could act under delegated authority, he said: “Hearing designations are so rare that if the bureau found merit to consider designating a hearing, they would almost certainly bounce it to the full Commission.”
FCC commissioners probably will take a vote on Liberty Media’s acquiring 38.5% of DirecTV from News Corp., said a lawyer involved in the $11 billion asset swap, who expressed optimism the deal will go through. Under Liberty Media, DirecTV likely would intensify efforts to sell directly to consumers, dealers told us.