Auction pause, reality check (spectrum auctions)

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


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.


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


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.


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…”


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


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?


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…


CORPORATION FOR PUBLIC BROADCASTING

BOARD OF DIRECTORS MEETING

NOVEMBER 17-18, 2014

Government & Nonprofit

Auction pause, reality check (spectrum auctions)