SECTION XII
Broadcast Law
Supreme Court Cases on Broadcast Regulation
NBC v. U.S. - 1943
Red Lion v. FCC - 1969
FCC v. Pacifica - 1978
Dimensions of the Radio Spectrum
Space
Frequency
Time
Spectrum Management
Allocation
Allotment
Licensing
Obtaining a Broadcast License
get a new license
buy an existing station
challenge at renewal time
Basic Qualifications
Legal/Ownership
Technical
Financial
Character
Ownership Issues
Multiple Ownership
Cross-Ownership
*Duopoly
Telecommunications Act of 1996
Telecommunications Act of 1996 affects all aspects of media industries
Act extends concept of deregulation which proponents say will result in free competition
That will improve consumer choices
That will encourage investment in new technology
Telecommunications Act of 1996
First major legislation since 1934
No nationwide limit on stations owned
The larger the radio market, the more stations one company can own
Allows cross-ownership-companies can own radio and TV stations in the same market as well as broadcast and cable in the same market.
1996 Act-Major Provisions
Deregulation on number of stations owned - up to 35% of population
Deregulation within markets of radio - up to 8 stations
Relaxed licensing rules - 8 years for radio and TV
Local phone competition
Unregulated cable rates
Telecommunications Act
As soon as the act passed in February 1996, radio station sales began to soar.
Supporters say radio will become more competitive,but opponents believe that consolidation could result in less program variety.
Critics of 1996 Act
Large media companies will get bigger because only they can afford to upgrade equipment and deliver systems for new markets.
Bundling means that consumers will pay one monthly bill for several types of services. This may be confusing for consumers.
Pros and Cons of "Big"
Pros
- Stability
- Economies of Scale
- Ease for Advertisers
Cons
- Control of Information
- Loss of Jobs
- Bland Programming
- Higher Ad Rates
Communications Decency Act
Made it a felony to send indecent material over computer networks - later overturned in courts
Cable operators would provide a free "lock box" to block programs
Voluntary rating system which will one day be automated via a "V-chip"