BLACK CAUCUS CONCERNED ABOUT MINORITY NETWORKS’ ACCESS TO CABLE
Access to cable systems by minority-owned networks was one of the primary concerns raised by members of the Congressional Black Caucus (CBC) in a meeting last week with cable industry executives, Rep. Scott (D-Va.) said (CD March 14 p12). “There are several stations that have a good product, but can’t get on the air,” he said of the difficultly some minority-owned networks have getting carriage on cable systems. Scott said the meeting generally discussed overall diversity problems and didn’t dwell on specific solutions.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
CBC members and cable industry executives described the meetings as positive, with the CBC viewing it as a beginning of dialog with the cable industry on a slew of issues dealing with minority representation in the industry. Scott said there was need for improvement “in front of the camera and behind the camera.” An NCTA spokesman said the cable industry as a whole generally mirrored the population in terms of diversity, but there was room for improvement in the executive ranks. NCTA reiterated that the meeting was a positive first step in the dialog with the CBC.
Scott said there were several “institutional barriers” that made it difficult for minority-owned networks to get on cable: “It’s a chicken-and-egg problem.” Without enough ad revenue, it’s difficult for networks to devote the funding necessary to create quality programming. Without quality programming, it’s difficult for networks to get on cable systems and attract the necessary ad revenue, he said. “They can’t develop a good product until they're on the air,” Scott said: “Without being on the air, it’s hard to develop a good product.” He said a network needed to have access to about 20 million households to attract significant ad revenue.
Other barriers exist, Scott said: “Financing is an issue,” as well as the decentralized nature of cable systems. Even though many cable systems are centrally owned, cable networks still have to pitch their stations to each separate jurisdiction, he said. It sometimes is difficult for networks to get on cable systems since the first 100 channels already are occupied in many jurisdictions, he said. Only about 20-30% of homes have a set-top box that gives viewers access to stations on more than 100 channels, he said, and “bumping” a cable network from the top 100 is often difficult. However, that is likely to be just a temporary problem, he said, as DTV tuners are likely to eliminate the problem.
Scott stressed that CBC members wanted to work within the existing structure and had few legislative or regulatory proposals to make. The only legislative proposal discussed in the meeting was the proposed Telecommunications Ownership Diversification Act of 2003 (S-267), introduced by Senate Commerce Committee Chmn. McCain (R-Ariz.) (CD Feb 3 p3). That bill would offer tax incentives for large media owners that sell to “socially and economically disadvantaged” entities. A companion bill is expected from Rep. Rush (D- Ill.).
Scott and Rep. Towns (D-N.Y.) organized the meeting and are leading the CBC on the issue, a CBC spokesman said. Other members attending the meeting included House Judiciary Committee ranking Democrat Conyers (Mich.), CBC Chmn. Cummings (D-Md.), Reps. Carson (D-Ind.), Davis (D-Ala.) Jackson-Lee (D-Tex.), Jefferson (D-La.), Johnson (D-Tex.), Jones (D-O.) Kilpatrick (D-Mich.), Lee (D-Cal.), Meeks (D- N.Y.), Owens (D-N.Y.) Rush, Waters (D-Cal.), Watt (D-N.C.) Wynn (D-Md.), Watson (D-Cal.), Christian-Christensen (D- V.I.), Norton (D-D.C.).