&#thirteen;
FOR IMMEDIATE RELEASE
&#thirteen;
June eleven, 2014
WASHINGTON, A.A. -- NAB Executive Vice President of Legal Jane Mago testified this morning at a House Energy & Commerce Subcommittee on Communications and Technology listening to on "Media Ownership within the twenty first Century."
Below is a transcript of her testimony as ready for supply. &#thirteen;
* * *
Good morning. My identify is Jane Mago, and I am Executive Vice President and General Counsel of the National Association of Broadcasters.
Let me start by placing this debate in context for you. In 1975, I was beginning regulation faculty, watching a black and white tv with no distant management and like everybody else I solely had three broadcast networks to select from. Cable wasn't obtainable to me and satellite tv for pc was not out there to me and the one satellite tv for pc tv was going to large earth stations owned by cable corporations. That was the world when a few of these broadcast possession laws have been created. Since then, we now have cable, satellite tv for pc, and telecommunications corporations all providing video providers. The Internet and the huge proliferation of stories retailers have completely revolutionized the best way we eat media. Yet time has seemingly stood nonetheless on the FCC.
The present broadcast possession guidelines are merely out of contact with the truth of right now's media market. They distort competitors. Cable, satellite tv for pc and Internet-based mostly media retailers – who function with out these cumbersome laws – proceed to proliferate and take each viewers share and promoting revenues.&#thirteen;
The native tv rule, for instance, which usually prohibits the possession of two tv stations in the identical market, assumes that tv broadcasters function in a bubble, solely competing towards different tv broadcasters. That is nearly laughable in at this time's market. One solely want take a look at the rising cable follow of promoting native promoting throughout a whole lot of cable packages to know that there's direct and actual competitors between broadcast and cable.
The FCC has lately determined to successfully prohibit two broadcast TV stations from partaking within the joint sale of promoting. But the massive cable operators, together with satellite tv for pc corporations and AT&T and Verizon, have been unimpeded as they joined forces to create a single supply that collectively sells native TV promoting. It is more and more troublesome for broadcasters to compete in a market so skewed by disparate regulation.
The 1975 newspaper/broadcast cross-possession rule is one other rule that depends on assumptions of a media panorama from a bygone period. The FCC itself has beforehand stated that the prohibition towards newspaper/broadcast cross-possession "just isn't essential to advance its localism and competitors objectives." And, it has acknowledged that the rule is "overly broad" as associated to its alleged objective of selling viewpoint variety, notably with regard to radio. Yet, this outdated rule continues to be on the books.
To keep the power to offer high quality native service and compete with newer applied sciences, broadcasters want a extra degree enjoying subject with our rivals.
That results in my second level; broadcast possession guidelines should hold tempo with market modifications. Congress correctly required the FCC to take a recent take a look at possession guidelines regularly in mild of competitors - and repeal or modify these not within the public curiosity. But, the FCC has did not comply with your path. The final evaluate was accomplished in 2007 – seven years in the past. And slightly than full the newest quadrennial evaluate as required by statute, the Commission rolled its 2010 assessment into 2014, after which introduced that it might unlikely full this assessment till at the least mid-2016.
NAB is difficult this most up-to-date FCC choice in courtroom, not simply because the FCC has did not reside as much as its statutory obligation, but in addition as a result of the Commission is imposing new restrictions on joint gross sales agreements amongst native tv stations – even though these preparations produce tangible public curiosity advantages. NAB has proven these agreements produce extra native information, extra overseas language tv and different group targeted programming. Amazingly, the brand new guidelines will pressure broadcasters to unwind agreements that the Commission had beforehand accredited.
Finally, consideration of the printed possession guidelines have to be based mostly on actual proof, not hypothesis. To tackle this, NAB asks Congress to undertake an examination of how the FCC's administration of the printed possession guidelines has stifled funding and alternative in broadcasting. In this time of intense consolidation in different elements of the communications business, these possession guidelines are more and more outdated and have vital, dangerous penalties on native media.
Regulatory insurance policies that starve native media of capital funding are a confirmed failure. They serve nobody – not present broadcasters, not new entrants, and most significantly, not the American individuals.
In sum, NAB is asking so that you can guarantee well timed and truthful revision of the printed possession guidelines. Maintaining the established order, creating new restrictions and even simply kicking the can down the street is a disservice to the American individuals. Thank you and I'm joyful to reply any questions. &#thirteen;
* &#thirteen; * *
About &#thirteen;
NAB
&#thirteen;
The National Association of Broadcasters is the premier advocacy affiliation &#thirteen;
for America's broadcasters. NAB advances radio and tv pursuits &#thirteen;
in legislative, regulatory and public affairs. Through advocacy, schooling &#thirteen;
and innovation, NAB allows broadcasters to greatest serve their communities, &#thirteen;
strengthen their companies and seize new alternatives within the digital &#thirteen;
age. Learn extra at www.nab.org.
[ad_2]