6.1 FCC regulation of broadcasting

Broadcasting regulation has evolved since the FCC's creation in 1934. The agency's rules, based on spectrum scarcity and public interest, have shaped TV and radio content, ownership, and operations for decades.

Today, the FCC balances public service requirements with industry needs. While some rules persist, others face criticism as outdated in a digital world. The agency's role continues to adapt as media landscapes change.

FCC Regulation of Broadcasting

Establishment and Rationale of FCC Regulation

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• The Federal Communications Commission (FCC) was established by the Communications Act of 1934 to regulate interstate and international communications by radio, television, wire, satellite and cable
• The scarcity rationale posits that because broadcast spectrum is limited, the government must regulate it as a public resource to ensure it serves the "public interest, convenience and necessity"
• Since broadcast TV and radio use public airwaves for free, serving the "public interest, convenience and necessity" is seen as a social contract and responsibility in exchange for their licenses
• The public trustee model views broadcasters as "public trustees" who have an obligation to serve their local communities

Evolution of Key FCC Broadcast Regulations

• The FCC's Fairness Doctrine, in place from 1949 to 1987, required broadcasters to devote time to controversial issues of public importance and to air contrasting views on those issues
  • It was eliminated over concerns it violated broadcasters' First Amendment rights and had a "chilling effect" on editorial freedom
• The equal time rule, codified in the Communications Act, requires broadcasters to provide equal opportunities for airtime to opposing political candidates if they give time to one candidate
  • This includes selling advertising at the lowest unit rate 45 days before a primary or 60 days before a general election
• Indecency and profanity regulations restrict "patently offensive" content between 6am-10pm, while obscenity is prohibited at all times
  • These rules have faced First Amendment challenges arguing they are vague, subjective, and outdated in an age of media abundance

FCC Powers and Responsibilities

Licensing and Technical Regulation

• The FCC assigns frequencies and call signs, issues licenses, and governs license renewals for broadcast TV and radio stations
  • Licenses are granted for 8-year terms if stations show they serve the public interest through programming, hiring practices, etc.
• The FCC sets technical standards for broadcast equipment and operations, including signal strength, tower height, transmitter power, etc.
  • This ensures efficient use of spectrum, minimizes interference, and creates a consistent technical framework for the industry

Content Regulation and Public Interest Obligations

• Broadcasters must give candidates reasonable access to advertising time and charge political candidates the "lowest unit charge" for ads close to elections
  • This ensures candidates can reach voters affordably, but limits stations' control over ad inventory and rates
• While the Fairness Doctrine is no longer in effect, the FCC still requires stations to air programming responsive to local community issues and maintain public inspection files
  • Stations must document their "issues/programs list" showing how they assess and serve the public interest
• The FCC restricts indecent programming between 6am-10pm, profane language, and obscenity at all times
  • It enforces sponsorship identification rules requiring clear disclosure if content is paid for or sponsored by an advertiser (infomercials, product placement)

FCC Regulation Impact on Broadcast Media

Balancing Public Interest and Commercial Priorities

• The scarcity rationale and public trustee model place special public interest obligations on broadcasters that may constrain content compared to newspapers or cable networks
  • Stations must balance their commercial interests and editorial/creative desires with FCC-mandated public service, potentially impacting programming and resource allocation
• Serving the public interest is an ongoing requirement for license renewal
  • Stations must air some news, public affairs, and locally responsive programming or risk challenges from local groups or competing applicants alleging they are not meeting community needs

Effects on Programming Practices and Business Models

• Indecency and profanity rules restrict broadcasters' editorial freedom and push more mature, "edgier" programming to late-night hours
  • Broadcast networks have lost some top creative talent to less regulated cable/streaming outlets promising more freedom
• Political broadcasting rules like equal time and lowest unit charge limit broadcasters' control over political ad inventory and rates during key election periods
  • Stations must offer discounted airtime to candidates, even if it displaces higher-paying commercial clients, impacting ad revenue
• Consolidation of station ownership, enabled by FCC deregulation, has impacted localism and diversity
  • Some argue large group owners focused on cost-cutting are less responsive to unique community needs compared to local owners

FCC Regulation Effectiveness vs Limitations

Criticisms and Challenges in a Changing Media Landscape

• New media not reliant on scarce spectrum, like cable, satellite, streaming, and internet, are not subject to the same public interest standards as broadcasting
  • This raises questions of fairness, the relevancy of broadcast regulation, and creates a fractured regulatory regime
• Despite content regulations, critics argue there is still too much indecent, violent, and advertising-driven content on TV and radio
  • Others say FCC rules violate free speech and are not consistently enforced across all broadcasters
• Media cross-ownership rules, which restricted ownership of a newspaper and broadcast station in the same market, have been weakened
  • Opponents argue this enables harmful consolidation and reduces viewpoint diversity and localism

Adaptation Efforts and Regulatory Reform

• The V-chip and content ratings system were an attempt to balance parental controls and industry self-regulation with FCC oversight
  • However, they have been criticized as ineffective and outdated in an age of streaming and on-demand viewing
• The Telecommunications Act of 1996 significantly relaxed radio and TV ownership limits, enabling consolidation
  • While this was intended to help broadcasters compete in a digital multichannel world, it reduced the diversity of voices
• In an age of hyper-targeted digital media, broadcasting's role as a local public forum and mass market "common denominator" has diminished
  • This has led to proposals to reform or sunset some broadcast regulations as the FCC focuses more on broadband and spectrum policy