FCC Chmn. Martin’s quest for a multicast must-carry order drew a death blow Sun. when new FCC Comr. McDowell balked at imposing the rules due to constitutional and other concerns, said sources. With no chance in 2006 for Hill action to make cable operators carry all broadcast digital channels, industry executives termed the issue dead for the foreseeable future. McDowell and his aides didn’t comment.
N.Y. Attorney Gen. Eliot Spitzer’s payola probe didn’t draw FCC participation, said an official, despite pleas from media activists for the Commission to take action. “We would love to work with the FCC if they would join us in the investigation,” said Juanita Scarlett, Spitzer’s press secy. “We haven’t heard from them,” she told us. An FCC Enforcement Bureau official declined comment. Chmn. Martin has said he’s “concerned” about payola (CD Aug 9 p9). Spitzer unveiled a settlement with EMI, the last major music label under investigation. EMI agreed to pay $3.75 million and change promotion and marketing practices after Spitzer said employees gave radio station workers sports, concert and airplane tickets “in exchange for airplay commitments.” EMI said: “'Payola’ for spins has continued to be an unfortunately prevalent aspect of radio promotion.” N.Y.’s probe of radio stations continues, a source said.
Broadcasters, poised to win multicast must-carry rules at next week’s FCC agenda meeting (CD June 15 p13), may rue that victory, said industry sources. To win a unanimous vote on the item, Chmn. Martin, leading what may be his most contentious meeting yet, may agree to subject digital multicasts to public interest obligations, they said. And cable operators have ample grounds to appeal the rules, on grounds they violate the First and Fifth Amendments, said sources.
The House video bill’s passage (CD June 9 Special Report) doesn’t presage smooth Senate approval of franchise reform, including Commerce Committee Chmn. Stevens’ (R- Alaska) telco proposal, said industry and Hill sources. They give low odds on 2006 overhaul because between now and the midterm elections there’s little time to pass Stevens’ bill - - still in draft -- and then reconcile the 2 bills. Differences between House and Senate proposals further complicate the path, they said.
Broadcasters’ public inspection files serve little purpose because few people read the documents they contain, said WZVN-TV Naples-Ft. Myers, Fla. in an FCC filing. It said the Commission’s “public file rule involves a vast amount of paperwork and time and effort [with]…virtually non-existent use of public inspection files by the public.” The FCC has been cracking down on broadcaster violations of public file rules, industry lawyers said. The Commission has more frequently fined TV stations for not making updated data publicly available, said broadcast lawyer Jerome Boros: “It’s very costly not to pay attention to the maintenance of these public files because you are very likely nowadays to be paying a couple thousand dollars or more.” In the past, he said, “frequently it was a slap on the wrist.” The FCC last week disclosed more than $80,000 in broadcast fines against stations whose licenses were renewed at the same time (CD June 9 p16).
The FCC agenda meeting was delayed because Comr. McDowell wants to study multicast must-carry rules circulating on the 8th floor, said Commission and industry sources. A week into the job, the newest commissioner asked for more time to prepare for the meeting at which a variety of controversial items may be considered (CD June 8 p13). Chmn. Martin’s proposal to reverse 2 previous FCC decisions has drawn congressional and cable wrath. A McDowell aide declined to comment.
Conn.’s DPUC order exempting IPTV from some franchise rules will be appealed by the New England Cable & Telecom Assn., which called it “unfair” and “anti-consumer.” Cablevision also complained about the order (CD June 8 p13). “This decision is clearly contrary to federal and state law,” said Cablevision late Wed. The cable group may file an appeal in U.S. Dist. Court, Hartford, said Pres. Paul Cianelli. “We'll be drawing up our pleading, and talking to some other interested parties to see if they want to appeal,” he told us Thurs. The organization will ask Conn. Attorney Gen. Richard Blumenthal (D), who criticized the decision, to participate in the appeal, said Cianelli.
RCN proposed an a la carte trial in Boston in a recent meeting with FCC Chmn. Martin. RCN touted Sen McCain’s (R- Ariz.) a la carte bill (CD June 8 p9), which Martin has supported. The company said an attempt to test selling channels individually was stymied by programmers. Programming tiers that may appear in an a la carte test include sports, news and Hispanic programming, said Senior Vp Richard Ramlall. “We'd like to learn if in fact customers want to opt in to tiers of programming with like interests,” he told us. CTO Timothy Dunne said: “We'd like the customers to vote with their dollars. A trial would be a great way to validate these controversial concepts.”
FCC Comrs. Copps and Tate complained that broadcasters and cable must do more to fight indecency, after parents expressed concern to them and the Commission about racy programming they don’t want their kids to watch. Copps was unsparing in his criticism, saying on a New America Foundation panel that the FCC must enforce indecency rules and not debate them. “We have a mandate to protect children from indecent programming,” Copps said: “That’s the law, not for the FCC to debate.”
FCC Chmn. Martin’s broad media ownership proposal doesn’t address cable ownership limits remanded to the Commission in 2001 by U.S. Appeals Court, D.C., said industry sources. The item moving on the 8th floor (CD June 1 p2) likely addresses broadcast rules, including lifting a ban on newspaper and TV station cross-ownership and boosting the number of markets where a firm can own multiple stations, they said. Broadcast rules including cross ownership were sent back to the FCC by U.S. Appeals Court, Philadelphia, in 2004.