IMMEDIATE RELEASE
July 26, 2004
Contact: Jeff Chester, Center for Digital Democracy
Washington, DC: The three major broadcast TV networks are merely spinning lame excuses for why they will not be covering the national political conventions for more than a few hours this summer. It’s all “tightly scripted,” “it’s not interesting," or there’s “no news,” they suggest. Meanwhile, the networks will show even less of the conventions than they did in 2000, continuing a sharp decline in coverage. Yet TV broadcasting will largely reap an unprecedented $1 billion or more from political ads sold this election season.
But just as the networks are fleeing from providing the public with greater information about US political issues, TV broadcasters are stealthily lobbying the Federal Communications Commission for a giant mega-billion dollar handout. Believe it or not, ABC, NBC, and the NAB claim that they are serving the public interest by providing the US public with news and information. Consequently, they want the US government to award them a financial digital bonanza that a modern-day Midas would envy.
First, let’s be clear. It’s greed on the part of the Big Three that is keeping convention coverage off the air. The Networks want to run as much of their regular prime-time schedule as possible to harvest profits from advertising. Meanwhile, profits at the networks are arcing ever skyward.
Viacom/CBS saw “double-digit operating income and revenue growth” in a record second quarter this year. It had operating income for the quarter of $1.4 billion, with a major increase from its television holdings. (Source: "Viacom Reports Record Second Quarter 2004 Results," PR Newswire, 22 July 2004.)
GE/NBC profits rose in the second quarter 2004 to $3.9 billion, which also saw $5 billion in TV ad “upfront” sales for next season. Having just swallowed Universal for $5 billion, TV sales were up 47 percent in the quarter. (Source: Phyllis Furman, "GE surges on NBC pop: Big boost from Universal," New York Daily News, 10 July 2004) Earnings from the Olympics are also expected to bring increased profits this summer. (Source: "NBC Universal Sees 3rd Qtr Profit Up 10 to 15 Pct," Reuter's, July 12, 2004.)
Disney/ABC also reported record growth for the second quarter, with $2.8 billion in revenues from its TV division. The company told shareholders to expect “double-digital annual earnings growth from 2004 through at least 2007.” (Source: The Walt Disney Company, "The Walt Disney Company Reports Higher Results for the Quarter and Six Months Ended March 31, 2004," press release, May 12, 2004.)
Meanwhile, the networks and the National Association of Broadcasters are lobbying the FCC to approve a new policy that would force cable operators to carry new broadcast network channels (called “multi-casting must carry). Instead of the one channel delivered today, the networks could deliver six or more interactive channels in its place. The networks have the audacity to tell the FCC and Congress that because they serve the “public interest,” they should receive this handout. Yet, during a critical time in US history, the three networks would rather not help encourage a national discussion of issues affecting Americans; they simply want to close their eyes to any obligation and just make lots of extra money. (See, for example, Center for Digital Democracy, "Broadcast Lobby’s Indecent Posture: Asking for Big Public Hand-out," April 26, 2004; and Common Cause, "Will Broadcasters Get Yet Another Giveaway Without Giving the Public Anything in Return?" April 13, 2004.)
CDD is a member of the "Public Interest, Public Airwaves" coalition asking the FCC to approve modest requirements for regular electoral and civic programming from TV broadcasters. For more information, see: http://www.bettercampaigns.org/.