Rules and Regulation
 Does
a company that profits from
the public airwaves have a
responsibility to that same public?
Why Regulate Broadcasting?

Scarcity Theory: The electromagnetic
spectrum is limited -- only a finite number
of broadcasting stations can exist in a
certain place at a certain time. Therefore,
the spectrum is a public resource and
cannot be privately owned. Demand
exceeds supply.
Why Regulate Broadcasting?

Pervasive Presence Theory: Broadcasting is
available to virtually all of the population. Once
the TV or radio is turned on, offensive messages
can enter the home at any time and without
warning. Broadcasting is basically an intrusive
business and consumers, especially children, need
some protection from the government.
History of the FCC
The Federal Radio Commission was
established by the Radio Act of 1927.
 The Communications Act of 1934
expanded the role of the FRC, increased
membership to seven commissioners and
renamed the organization -- the Federal
Communications Commission.

How Does the FCC Operate?
There are five commissioners, one of who
serves as chair, appointed by the president
and confirmed by the Senate, for staggered
five-year terms.
 No more than three members can be from
the same political party.

What does the FCC do?
International Bureau: Treaties/Satellites
 Compliance and Information: Technology
and Field Offices
 Cable Services Bureau: Consumer
Protection/Engineering
 Common Carrier Bureau:
Telephone.Telegraph/Policy

What does the FCC Do?
Mass Media Bureau:
Audio/Video/Enforcement/ Policy and
Rules
 Wireless Telecommunications Bureau

What does the FCC really do?






Issues and Renews Licenses -- TV and radio
licenses are granted for 8-year terms
Responds to public complaints
Sets new policies
Enforces laws enacted by Congress
Sets technology standards
Enforces EEOC requirements
The FCC and Cable
The FCC initially refused to regulate cable.
 Began enacting cable legislation in ‘60s
because cable was becoming a threat to
broadcasters.
 Increased regulation in ‘70s.
 Cable operators are not licensed by the
FCC.

Cable Act of 1992


Broadcasters wanted retransmission consent regulations.
Cable system operators were transmitting their signals for
free, using profits from subscribers to add more cable
networks -- competitors for the local stations.
The Cable Act of 1992 gave broadcasters the right to
choose whether to demand carriage on a local cable
system or negotiate for retransmission consent rights
payments.
Cable Act of 1992

Majority of stations opted for payment but cable
system operators refused to pay. Finally most
stations backed down in a face-saving deal,
negotiating for new channels. Only the Big Four
networks had the money and resources to actually
program those channels.
FCC and Cable
Most recent controversy centers around cable
rates.
Expanded basic cable costs around $41, and
subscribers may get over 100 channels.
In five years the monthly price has jumped 40
percent, even though subscribers still only watch
15-17 channels a month.
FCC and Cable
Congress and the new FCC chairman, Kevin
Martin, have proposed looking at an “a la carte”
system.
FCC report says a la carte would reduce cable
bills.
FCC and Cable
Another concern is content.
For years, the FCC felt since viewers “invited”
cable into the home audiences knew the risks.
But now, to many viewers, TV is TV.
One study showed that 85 percent of people
watching cable television thought they were
watching local stations.
FCC and Content
Contrary to popular belief, the FCC has few hard
and fast rules regarding programming content.
The FCC rules on content after the fact.
Indecency
Why is Congress now making its first major push
in 25 years to toughen broadcast decency
standards?
The FCC recently levied fines of over $4.5
million on broadcast networks and stations.
Indecency


Upheld $550 million fine against CBS for Janet
Jackson’s halftime performance during 2004
Super Bowl
$3.6 million in fines against 111 CBS affiliates for
airing episode of “Without a Trace” that featured
a teen orgy.
FCC Guidelines on Indecency and Obscenity
In Miller v. California (1973), the Supreme Court defined
obscenity as material that:
 depicts or describes in a patently offensive way certain
sexual acts defined in state law
 appeals to the prurient interest of the average person,
applying contemporary local community standards
 lacks serious artistic, literary, political or scientific value.
Indecency
The current commonly accepted FCC definition of
indecency is:
Something broadcast is indecent if it depicts or
describes sexual or excretory activities or organs
in a fashion that is patently offensive according
to contemporary community standards for the
broadcast media at a time of day when there is a
reasonable risk that children may be in the
audience.
Indecency


Broadcasters are forbidden to air “indecent”
content that describes or depicts sexual or
excretory organs or activities in a patently
offensive way between 6 a.m. and 10 p.m.
Obscene programming is prohibited.
Indecency
According to Section 1464 of the U.S. Criminal
Code, anyone who utters profane, indecent or
obscene language over radio or TV is liable to
fine or imprisonment. Violators may be
prosecuted by both the FCC and the Department
of Justice. If found guilty, perpetrators may face
fines of up to $10,000, possible loss of license or
jail time.
Indecency
Bill introduced in Congress (b.j.j.) would:

Increase FCC fines tenfold, from a maximum of
$27,500 to a maximum of $275,000 per violation to a
cap of $3 million per incident.
Now, after Janet Jackson, the Senate Commerce Committee
approved legislation that would:

Regulate violent content on television whether it
originates on broadcast, pay cable or satellite TV
Enforcement





Identifying what truly constitutes indecent or obscene
programming has always been difficult.
Context is important.
Viewer expectation is important.
How can the FCC monitor programming?
Complaints of indecent or obscene programming must be
submitted to the FCC and must be accompanied by a tape
or transcript of the offensive programming.
Indecency
Broadcasters have filed suit against the FCC
saying the new tougher indecency policies
are arbitrary and unconstitutional.
Violence
FCC is currently circulating a draft report that
says Congress can draft a law that allows the
FCC to regulate violent programming without
violating the First Amendment.
FCC would approach issue the way it has
tackled sexual content and profanity -- can’t
do it during hours when children could be
watching.
Violence
Studies say watching violent programming can lead to
“short-term aggressive behavior” in children.
Television executives say parents have the “tool” to
control children’s viewing habits -- the v-chip as well
as content ratings.
Broadcasters launched a $300 million public campaign
in 2006 to teach parents how to use the V-chip and
other blocking technology.
Violence
The Parents Television Council says violence is
epidemic and the amount of violence on TV
has increased 75 percent in six years.
Fairness Doctrine
Section 315 says:
If any licensee shall permit any person who is a
legally qualified candidate for any public office to
use a broadcasting station, he shall afford equal
opportunities to all other such candidates for that
office in the use of the broadcasting station.
Fairness Doctrine
Section 315 guarantees equal opportunities not
equal time.
Station does not provide air time for free unless
other candidate had free time.
Station is not required to notify opponents.
Defining “use” is often difficult – especially when
the candidate appears in a role that is different
from that of a candidate.
Fairness Doctrine



For example, four NBC affiliates in Iowa preempted an episode of “Saturday Night Live,”
which featured Al Sharpton.
What about candidates who were actors in
previous lives – Ronald Reagan, Arnold, Gopher,
Sonny Bono?
What about incumbents running for re-election?
Political Ads
Broadcasters cannot charge more for political ads
than they do for regular ads. They also can’t
charge candidate A more than they charge
candidate B. They also have to provide equal
access to time periods.
Current Issues Facing the FCC







Ownership Cap
Public Interest
Children’s Programming
Fairness Doctrine
Network Affiliate Complaints
Technology Issues
Media Mergers