Mass Media Law 18 th Edition Don Pember Clay Calvert Chapter 16 Telecommunications Regulation McGraw-Hill/Irwin © 2013 McGraw-Hill Companies. All Rights Reserved.

16-2 Broadcast Regulation Changing Philosophy of Broadcast Regulation –Broadcast spectrum is a limited transmission pathway. Not all who want to transmit radio signals can do so. –Ultimately, American people own the transmission path – the radio spectrum – through which broadcast signals are transmitted.

16-3 Broadcast Regulation Changing Philosophy of Broadcast Regulation –Broadcasters had responsibility of “meeting the public interest, convenience, or necessity.” The acronym PICON became the code-word to justify broadcast regulation. –FCC traditionally has traditionally identified three factors promoting “public interest.” These are competition, diversity, and localism.

16-4 Broadcast Regulation Changing Philosophy of Broadcast Regulation –During the final 25 years of the 20th Century, the notion that broadcasters should serve the public interest began to erode. –Rationale for broadcast regulation has unraveled as a result of new media forms (e.g. Internet and cable television) with theoretically limitless transmission space.

16-5 Broadcast Regulation Basic Broadcast Regulation –1912Radio Act –1927Radio Act –1934Federal Communications Act –1996Telecommunications Act

16-6 Licensing Qualifications For Prospective Licensees –The applicant must be a citizen of the United States or have less than 25% foreign ownership. (An exception was made for Rupert Murdoch.) –The applicant must have sufficient funds to build and operate the station for at least three months without earning any advertising revenue.

16-7 Licensing Qualifications For Prospective Licensees –The applicant must either possess or be able to hire people who possess the technical qualifications to operate a broadcast station. –The applicant must be honest and open in dealing with the commission and must have good character. –When two or more persons seek the same license, the FCC uses an auction process to select who will receive the license.

16-8 Multiple Ownership Rules Current Rules Regulating Broadcast Ownership –A single company or individual may own television stations whose signals reach no more than 45 percent of the total national viewing audience. –There is no limit on the number of radio stations any single licensee can own.

16-9 Multiple Ownership Rules Current Rules Regulating Broadcast Ownership –Ownership of both radio and television stations in a single market is limited, based on the number of stations in the market. –Cross-ownership rules – the ownership of TV and radio stations and newspapers in the same market. Guided by the number of media properties in a market.

16-10 Multiple Ownership Rules Current Rules Regulating Broadcast Ownership –Key federal rules related to ownership: Television/newspaper cross-ownership ban National television ownership rule National radio ownership rule Local television ownership limit Local radio ownership limit Dual network ban

16-11 License Renewal Congress has instructed the FCC to renew a broadcaster’s license every eight years as long as: –The station has served the public interest, convenience and necessity. –The licensee has not committed any serious violations of the Communication Act or FCC rules. –The licensee has not committed any other violations that, taken together, would constitute a pattern of abuse.

16-12 License Renewal Public Challenges –Though members of the public can participate in the renewal process, citizen participation is rare in practice. –Recent rule changes make it harder for citizens to mount effective license challenges.

16-13 Regulating Program Content FCC Sanctions –Issue a warning notice. –Impose a monetary fine (a “forfeiture”; an increasingly common remedy). –Place conditions on renewal of a broadcast license. –Revoke a broadcaster’s license entirely (very rarely used).

16-14 Regulating Programming Regulation of Children’s Programming –Only 10.5 advertising minutes are permitted each hour on weekends, 12 minutes each hour or weekdays. –At least three hours of “educational” children’s programming must air each week. –There must be a buffer between commercials and program content (“We’ll be right back…). –A program may not mention an item advertised in a commercial for the same show.

16-15 Regulating Programming Should the FCC be allowed to punish broadcasters for televising expletives? This is a major question that the U.S. Supreme Court was scheduled to rule on in 2012 in a case called FCC v. Fox Television Stations, Inc.

16-16 Regulating Programming FCC Definition of Indecency –Language or material that, in context, depicts or describes, in terms patently offensive as measured by contemporary community standards for the broadcast medium, sexual or excretory activities or organs.

16-17 Regulating Programming Three factors the FCC uses to determine if content is offensive: 1.The explicitness or graphic nature of the description 2.Whether the material dwells on or repeats at length descriptions of sexual or excretory organs or activities 3.Whether the material is used to shock, titillate or pander

16-18 Violence on Television V-Chip Mandate –In 1996, Congress mandated that all manufacturers of television sets include a V-Chip to block out violent programming. –Along with the chip, Congress imposed a program rating system.

16-19 Violence on Television Television Ratings System –TV – Yapproved for all children –TV – Y7approved for children 7 and over –TV – Gsuitable for all ages –TV – PGparental guidance –TV – 14parent strongly cautioned –TV – Mmature audiences only

16-20 Violence on Television Television Ratings System: Content Ratings –V – violence –S – sexual situations –L – coarse language –D – suggestive dialogue –FV – fantasy violence

16-21 Regulating Political Programming Candidate Access Rule –Broadcasters must allow candidates for federal office access to or the purchase of airtime. CBS v. FCC (1981) Kennedy for President Committee v. FCC (1980)

16-22 Regulation of Political Programming Equal Time Rules –If a broadcasting station permits one legally qualified candidate for any elective public office to use its facilities, it must afford an equal opportunity for all other legally qualified candidates for the same office. –Equal time. –Equal facilities. –Comparable costs.

16-23 Regulation of Political Programming Appearances by a Political Candidate Not Covered By Equal Opportunity Rule: –Appearance in a bona fide newscast. –Appearance in a bona fide news interview show. –Appearance in the spot news coverage of a bona fide news event. –Incidental appearance in a news documentary.

16-24 Regulation of Political Programming Defining Legally Qualified Candidate –Who publicly announces he or she is a candidate for nomination or election, and –Who meets the qualifications prescribed by law for that office, and –Who qualifies for a place on the ballot, and –Who was duly nominated by a political party.

16-25 Regulation of News and Public Affairs Limited Governmental Control –The FCC has thus far rejected all complaints that television news coverage was slanted or staged. –The FCC has made it difficult for those who seek to prove biased coverage to receive a remedy.

16-26 FCC and First Amendment Broadcasters Are Not Common Carriers –In CBS v. National Democratic Committee (1973), the U.S. Supreme Court gave broadcasters the right to determine whether to air specific editorial advertising.

16-27 FCC and First Amendment In FCC v. League of Women Voters (1984), the U.S. Supreme Court struck down a statute that forbade public broadcasting stations from telecasting editorial opinions.

16-28 Regulation of New Technology Satellite Radio –Satellite radio stations are exempt from FCC’s rules governing indecency and profanity.

16-29 Regulation of New Technology Internet and Broadband –In 2009 the FCC began developing a national broadband plan designed to ensure that every American has access to broadband capability

16-30 Cable Television Regulation Cable Television Consumer Protection and Competition Act (1992) –Local governments are given the primary responsibility to regulate cable systems in their communities. –Local governments may issue franchises, collect franchise fees, and renew franchises. –Includes provisions to protect subscribers’ right to privacy.

16-31 Cable Television Regulation Must Carry Rules –According to “must carry rules,” cable television systems must carry local television programming channels. –In Turner Broadcasting System, Inc. v. FCC (1994), the U.S. Supreme Court ruled must carry rules were constitutional.