auction pause, reality check (spectrum auctions)
TRANSCRIPT
Corporationfor Public Broadcasting
CORPORATION FOR PUBLIC BROADCASTING
BOARD OF DIRECTORS MEETING
NOVEMBER 17-18, 2014
Corporationfor Public BroadcastingBoard of Directors Meeti ng ▪ Washington, DC ▪ November 17-18, 2014
C o r p o r a ti o n f o r P u b l i c B r o a d c a s ti n g
Auction Pause, Reality Check
John Lawson, PrincipalConvergence Services, Inc
Corporationfor Public Broadcasting
Basic Issues for a Big Decision• The most consequential decision that today’s PTV leaders will
ever make about future of public media. • FCC Chairman’s delay until 2016 (if then) creates time and
space for more careful deliberation.• Licensee’s decision, but role of CPB Board is far-reaching.• CPB support of due diligence offers stations a more complete
picture.
Corporationfor Public Broadcasting
Know When to Hold ’Em • Next-gen broadcasting technology opens new
revenue streams for TV broadcasters. • Economic models project sharp increases in
annual revenue as broadcasters create “overlay networks” for LTE & other devices.
• FCC ruled in 2001 that public stations can participate in this kind of revenue model.
• If a “spectrum crisis” truly exists, spectrum prices will only increase over time.
FCC Auctions Ave 5/year since 1993
Corporationfor Public Broadcasting
Must Carry, Must Question• U.S. Supreme Court upheld cable must-carry of
one channel/station on 5-4 votes in the 1990s. • The current court guarantees corporations the
same First Amendment rights as people. • Will it now let Congress force cable companies to
carry “speech” from multiple licensees on one shared channel?
• Another private agreement with cable is possible, but relying on the force of law for shared carriage is risky.
Corporationfor Public Broadcasting
Uh, Do They Know Yet?
• “Viewers like you” have nurtured their PTV stations across decades, generations.
• Current members might not grasp logic of taking down some, or all, of their signal.
• Secrecy rules in Spectrum Act only invite trouble.
You’re selling our PBS station to…VERIZON?!?!
WWFD
“Lucy, you’ve got some ‘splainin’ to do…”
Corporationfor Public Broadcasting
Economic Inequality, Meet Unequal Access
• Number of Americans relying on OTA increased 38% since 2010.
• 19.3% of all TV HHs—nearly 60 million individuals today.
• Minorities make up 41% of all broadcast-only homes.
• 28% of HHs headed by age 18-34 rely on OTA (up from 18% in 2010).
Forbes, 10.02.12 GfK’s Ownership Survey and Trend Report 2013 & 2014
Corporationfor Public Broadcasting
WWFD: What Would Frieda Do?• What is the 21st Century equivalent
of the noncom spectrum reserve?• If broadband is the future, what is
our policy for guaranteed, free public media on the Internet?
• Mobile video is driving “spectrum crisis,” so how to ensure that future smartphones are “unlocked” to receive public media?
Corporationfor Public Broadcasting
A Chainsaw Where a Knife Is Needed
• Streamlining and reducing cost is imperative.
• CPB is driving efficiencies.• Rational spectrum policies would
strengthen PTV and free up more spectrum.
• But the Spectrum Act is like using a…
Corporationfor Public Broadcasting
CORPORATION FOR PUBLIC BROADCASTING
BOARD OF DIRECTORS MEETING
NOVEMBER 17-18, 2014