FCC indecency enforcement seems vague, only partly weighs parental authority in deciding what’s best for kids and gives short shrift to a TV rating system, U.S. Appeals Court, N.Y., judges said during oral arguments in Fox v. FCC. An agency decision to cut CBS slack when The Early Show aired a game-show contestant’s utterance of “shit” on grounds that it was news indicates the news exception may be too broad, 2nd U.S. Appeals Court Judge Rosemary Pooler said. Pooler also focused on judgments of indecency based on “artistic merit.” Judges’ questioning Wed. of FCC lawyer Eric Miller and Fox’s Carter Philips was more pointed than at a preliminary hearing (CD Aug 30 p3).
Cable rates in cities as far-flung as San Francisco and Boston cluster at about $50 monthly for a popular package of local TV stations and cable networks. Expanded basic and similar packages cost about that much, excluding taxes like franchise fees in 15 cities we surveyed cable rates. Bills rose an average of 9.1% early this year in 8 cities, including Philadelphia and Norfolk, Va.
Jefferson County, Colo., hasn’t decided what to do about a bill allowing a DTV tower to serve Denver (CD Dec 12 p2), a spokeswoman said. “We're looking at what the ramifications are,” she said: “We've had the court case remanded to us… three times.” In May, Jefferson County Dist. Judge Brooke Jackson remanded a suit by residents against the Lake Cedar consortium of 4 stations and county over the antenna. The county board of commissioners must reconsider a vote against permitting the tower to be built, an action reversing a 2003 vote for the tower, Jackson wrote: “It is surely frustrating to all interested parties that this matter continues to drag on. However, this decision, which will impact the public one way or another, must be made correctly and in a manner that the public can understand.” A bill by Rep. Allard (R-Colo.) would preempt local zoning, said Marv Rockford of Lake Cedar.
Commissioners may soon approve the purchase of Univision, wrote Miller Tabak analyst David Joyce. An FCC official said last month that Univision’s $13.7 billion sale to private equity firms was slated to go soon to the 8th floor for a vote (CD Nov 17 p1). Joyce said the deal could be voted on as soon as the Dec. 20 agenda meeting. But broadcast officials said a vote next week is unlikely, judging by the amount of time previous industry transactions have taken to pass 8th-floor muster. A Univision official declined comment. Items likely to be placed on the meeting agenda include an order making it easier for Bells to get cities’ permission to sell video and a cable rate survey, FCC officials said last week. The FCC will release its meeting agenda late today (Wed.).
Consolidation of radio station ownership is keeping many performers from getting airplay because large companies use national, not local, playlists, musicians told the FCC media ownership hearing in Nashville. The Commission shouldn’t raise station ownership caps in new ownership rules, they said. “A handful of corporate owners have become the gatekeepers in determining airplay,” testified country artist Harold Bradley, vp-American Federation of Musicians. The 1996 Telecom Act limited musicians’ chances for “public exposure” by easing ownership limits, he said. The Commission should reduce the number of stations a company is allowed to own, said Songwriters Guild of America Pres. Rick Carnes: “Big radio is bad radio… The quality of music is inversely proportional to the size of the radio network.” Other musicians agreed and several criticized Clear Channel and other big broadcasters as pursuing profit over diversity. Commissioners face the “difficult challenge” of tweaking broadcasting rules amid surging Internet use, departing Senate Majority Leader Frist (R-Tenn.) said in audiotaped remarks. FCC Chmn. Martin acknowledged that he and his colleagues face a “difficult” rulemaking. “I recognize many of the concerns expressed” about diversity, he said: “We are still in the beginning phases of our review and of our work.”
The FCC should keep rules that prohibit cable operators from striking exclusive deals to distribute their programming, several broadband and pay TV providers said in response to the Commission’s pay TV competition inquiry. Comments were due late Wed. The FCC was asked to renew so- called program access rules to ensure that new video entrants and smaller companies can carry channels owned by cable operators. “As the Commission begins to consider extending its program access rules, it is clear that the prohibition against exclusive programming contracts remains necessary,” Verizon said: “New entrants face the additional hurdle of obtaining popular video programming on fair and reasonable terms.” Other filers made similar comments, including America Channel and Broadband Service Providers, whose members include RCN and WOW. “All competing distributors should have the same access to content,” the group said: “While the program access provisions have been effective, they need to be expanded.” The agency next year will issue a notice of proposed rulemaking asking whether to keep the rules, which expire in 2007, FCC officials have said. Some cable operators want the FCC to lift the restrictions, said a cable lawyer. But that may not happen because of commissioners’ concern about competition, said another industry lawyer. NCTA believes there’s plenty of competition
Comcast, Cox and other cable operators plan rate rises in some large cities. Many increases take effect in early 2007 - season when operators raised rates before (CD Oct 2 p6). Comcast monthly bills will rise 5.4% on average in 12 cities, Sanford Bernstein analyst Craig Moffett wrote Wed. Rates are to rise an average of 6.8% in Seattle, 5.5% in Richmond, Va., and 3.5% in Philadelphia, Moffett said, citing local media reports. Cable operators raised U.S. rates 6% overall this year, said research from a pay-TV industry official. In Feb. Boston-area Comcast bills rose 6.2% to $44.74 monthly for Metro Package customers, said documents from the city’s cable office. San Francisco-area bills for Comcast’s most popular cable service will grow 8% to $44.64 monthly in Jan., the Oakland Tribune reported. Rates in San Francisco rose 7% on average this year, industry research showed. A Comcast official didn’t return calls. Cox will raise expanded basic rates 6.1% to $43.35 monthly in the Norfolk, Va., area Jan. 1, the Virginian-Pilot reported. Company officials didn’t return calls. Prices for Cox “expanded service” in Norfolk have risen 45% since Dec. 2001, said city cable official Pam Staggs.
AT&T and Verizon are poised to overcome some hurdles to providing their own pay TV, as a key legislator wants to exclude net neutrality from a Mich. video bill and Verizon got a franchise from the 6th richest U.S. county. Mich. Rep. Mike Nofs (R), sponsor of the bill (CD Nov 28 p5), likely wants it to remain separate from net neutrality rules, said aides. AT&T stands to benefit if net neutrality provisions sought by Google don’t become part of franchise law, said industry officials.
Bells and cable were lobbying FCC 8th floor officials on fiber and cable franchising rules before a coming vote on an order addressing municipal mandates that some telecom companies call onerous. FCC Chmn. Martin has said he wants a vote this year (CD Oct 13 p5). Cable, Bell and city officials have met at least 8 times this month with commissioners or aides on franchising, including twice with Martin, ex parte filings show.
The FCC’s unveiling of 10 media ownership studies drew fire for being vague on methodology, cost and choice of researchers in what Comr. Adelstein said he fears will be hurried research. A Wed. public notice listed studies the Commission will underwrite on independently produced TV, minority roles in industry, local news, station-newspaper cross ownership, radio programming and other topics. The announcement raises “more questions… than it answers,” said Adelstein and Comr. Copps in separate comments. Two professors hired to run some of the studies refused to say what the FCC is paying them.