📺NBC - Anatomy of a TV Network Unit 9 – Regulatory and Legal Issues in Broadcasting

Key Regulatory Bodies

• Federal Communications Commission (FCC) primary agency responsible for regulating interstate and international communications by radio, television, wire, satellite, and cable
  • Established by the Communications Act of 1934
  • Composed of five commissioners appointed by the President and confirmed by the Senate
• National Telecommunications and Information Administration (NTIA) advises the President on telecommunications and information policy issues
  • Located within the Department of Commerce
  • Manages federal use of the electromagnetic spectrum
• Federal Trade Commission (FTC) protects consumers from unfair or deceptive practices in the marketplace, including advertising
• National Association of Broadcasters (NAB) trade association that represents the interests of commercial radio and television broadcasters
  • Lobbies Congress and the FCC on behalf of its members
  • Provides resources and support to broadcasters

Historical Context of Broadcasting Regulations

• Radio Act of 1912 first federal law to regulate radio communication, primarily focused on licensing and assigning frequencies
• Radio Act of 1927 established the Federal Radio Commission (FRC) to regulate broadcasting in the public interest, convenience, and necessity
  • Introduced the concept of the electromagnetic spectrum as a limited public resource
• Communications Act of 1934 replaced the FRC with the FCC and expanded its authority to include telephone and telegraph communications
• Telecommunications Act of 1996 overhauled telecommunications law, promoting competition and reducing regulation
  • Relaxed ownership rules, allowing for greater consolidation in the broadcasting industry
  • Required the FCC to review its media ownership rules every four years

Major Broadcasting Laws and Acts

• Communications Act of 1934 established the FCC and its authority to regulate broadcasting in the public interest, convenience, and necessity
• Communications Satellite Act of 1962 created the Communications Satellite Corporation (COMSAT) to develop a global satellite communications system
• Cable Communications Policy Act of 1984 established a national policy for the regulation of cable television
  • Prohibited regulation of cable rates in areas with effective competition
  • Required cable operators to carry local broadcast stations (must-carry rules)
• Children's Television Act of 1990 required broadcasters to provide educational and informational programming for children
  • Limited the amount of advertising during children's programming
• Telecommunications Act of 1996 promoted competition and reduced regulation in the telecommunications industry
  • Relaxed ownership rules, allowing for greater consolidation in the broadcasting industry
  • Required the FCC to review its media ownership rules every four years

Content Regulations and Standards

• Obscenity, indecency, and profanity prohibited or restricted on broadcast television and radio
  • Obscenity not protected by the First Amendment and prohibited at all times
  • Indecent content restricted to late-night hours (10 p.m. to 6 a.m.)
• Fairness Doctrine (1949-1987) required broadcasters to present controversial issues of public importance and to do so in a balanced manner
  • Repealed by the FCC in 1987, citing its chilling effect on free speech
• Equal Time Rule requires broadcasters to provide equal opportunities for qualified candidates for the same office to appear on the air
  • Applies to appearances by candidates, not to news coverage or interviews
• Sponsorship Identification Rules require broadcasters to disclose when content is sponsored or paid for by an outside entity
  • Includes product placements and "payola" (payments for playing certain music)

Licensing and Ownership Rules

• Broadcast licenses granted by the FCC for a term of eight years for radio and television stations
  • Licenses can be renewed if the station has served the public interest, convenience, and necessity
• Multiple Ownership Rules limit the number of radio and television stations an entity can own in a single market and nationally
  • Designed to promote diversity and competition in the marketplace of ideas
• Cross-Ownership Rules restrict common ownership of newspapers and broadcast stations in the same market
  • Intended to prevent a single entity from dominating the local media landscape
• Foreign Ownership Restrictions limit foreign ownership of broadcast licenses to 20% for direct investment and 25% for indirect investment
  • Designed to protect national security and ensure that broadcast stations serve the interests of the American public

Public Interest Obligations

• Broadcasters required to serve the "public interest, convenience, and necessity" in exchange for their use of the public airwaves
  • Includes providing news, public affairs, and local programming
  • Requires stations to maintain public inspection files documenting their service to the community
• Children's Television Act of 1990 requires broadcasters to provide educational and informational programming for children
  • Stations must air at least three hours of "core" children's programming per week
• Emergency Alert System (EAS) requires broadcasters to participate in a national warning system to inform the public of emergencies
  • Stations must have equipment to receive and transmit EAS messages
• Closed Captioning Rules require broadcasters to provide closed captioning for most television programming to assist deaf and hard-of-hearing viewers

Current Legal Challenges in Broadcasting

• Net Neutrality debate centers on whether internet service providers should be allowed to prioritize or block certain content or charge different rates for different types of content
  • FCC's 2015 Open Internet Order classified broadband as a telecommunications service subject to Title II regulation
  • FCC's 2017 Restoring Internet Freedom Order repealed the 2015 order and reclassified broadband as an information service
• Sinclair-Tribune Merger proposed in 2017, would have created the largest television station owner in the United States
  • FCC raised concerns about Sinclair's proposed divestitures and whether the merger would serve the public interest
  • Tribune ultimately withdrew from the merger in 2018
• Retransmission Consent negotiations between television stations and cable/satellite providers over the fees paid to carry broadcast signals
  • Disputes can lead to "blackouts" where stations are temporarily unavailable on cable/satellite systems
• Copyright Infringement and Piracy concerns as technology makes it easier to illegally distribute and access copyrighted content
  • Broadcasters and content creators seek stronger legal protections and enforcement mechanisms

Future of Broadcasting Regulations

• Convergence of media platforms (broadcast, cable, satellite, internet) blurs traditional regulatory distinctions
  • Calls for a more unified and technology-neutral approach to media regulation
• Spectrum Reallocation as demand for wireless broadband services grows, putting pressure on broadcasters to relinquish spectrum
  • FCC's Broadcast Incentive Auction (2016-2017) allowed broadcasters to voluntarily sell their spectrum rights for wireless use
• Localism and Diversity concerns as media consolidation and the decline of local journalism threaten the availability of local news and information
  • Proposals to strengthen local media ownership rules and support local journalism
• Privacy and Data Protection issues as broadcasters and online platforms collect and use viewer data for advertising and personalization
  • Calls for stronger privacy regulations and consumer protections in the digital age
• Accessibility and Inclusion efforts to ensure that media content and services are accessible to all audiences, including persons with disabilities and diverse communities
  • Proposals to strengthen accessibility rules (e.g., closed captioning, audio description) and promote diversity in media ownership and content