Page 94 - Battleground The Media Volume 1 and 2

Cable Carr age D sputes |

1975—HBO launches using satellite distribution.
1976—Congress holds cable operators liable for broadcast copyrights and establishes
compulsory licensing fees.
1977—Supreme Court strikes down pay-TV content restrictions.
1980—Cable households, 15 million.
1984—Congress enacts first federal cable TV laws, including granting cities franchising
authority, restricting rate regulations, and reinforcing local broadcast must-carry rules.
1986 and 1988—Federal appeals court strikes down local broadcast must-carry rules as
a violation of cable operators’ First Amendment rights.
1990—Cable households, 53 million.
1992—Congress enacts laws for cable rate regulations, service standards, indecency
rules, local broadcast must-carry requirements, and broadcaster rights to negotiate
compensation for cable retransmission.
1994—Supreme Court upholds must-carry rules in a 5–4 decision.
1996—Congress enacts laws limiting cable rate regulations and loosening broadcast
station ownership limits.
1997—Congress mandates a deadline of 2006 for converting to digital broadcasting.
2000—Cable households, 66 million. Satellite households, 12 million.
2002—Satellite operators required to carry local broadcast channels.
2005—Congress extends digital broadcast deadline to 2009.
2006—Congress debates federal video franchising for telephone companies and must-
carry rules for broadcasters’ multiple digital signals. FCC requires cable operators to
carry broadcasters’ main digital signal, effective 2009.

ThE DigiTaL Era
The most recent carriage disputes involve the transition to digital broadcast-
ing. In 1997, Congress mandated that all broadcasters convert to digital broad-
casting by the end of 2006. But cable operators’ reluctance to carry broadcasters’
analog and digital signals during the transition period slowed the process. In
2005, Congress extended the transition deadline to February 17, 2009, and
provided $1.5 billion in subsidies to assist low-income households to purchase
converter boxes. Because digital transmission makes more efficient use of the
spectrum, broadcasters can offer multiple channels instead of just one. As of
2007, Congress has not required cable operators to carry broadcasters’ addi-
tional channels. Absent these requirements, in 2005 public television stations
entered an agreement with cable operators to carry four digital channels for
each local PBS station. Local PBS affiliates have developed channels for kids
programming, educational instruction, and local programming in addition to
their main channels. Commercial broadcasters have lobbied for multicast car-
riage that some public interest groups have supported if additional public ser-
vice requirements are enforced, such as channels for public affairs, educational
children’s programming, and community access.