Cable Fear D.C. Changes

Television Digest with Consumer Electronics, April 24, 2000

With new children's online privacy rules in effect, FTC received 2nd and apparently stronger application for safe harbor certification, from Children's Ad Review Unit (CARU) of Council of Better Business Bureaus. First application for self-regulation, from private company PrivacyBot, was roundly criticized by consumer groups. FTC hasn't issued finding in that case on whether PrivacyBot members would qualify for safe harbor protection. CARU plan, which would involve considerably more activity by industry group, would meet requirements of Children's Online Privacy Protection Act (COPPA) and it "in some cases goes beyond," CARU said. CARU said its guidelines will require "notice," "choice" and "consent," as those terms are defined by FTC, and always will "reflect the latest developments in technology and its application to children's advertising."

APTS criticized FCC decision to throw public broadcasters into auctions when competing for commercial spectrum (TVD April 17 p11), saying that could "potentially harm existing public television stations." Vp-Policy & Legal Affairs Marilyn Mohrman- Gillis said FCC "has misinterpreted the language and intent of the statute regarding auctions. We believe that this language will have a far-reaching negative impact on public television translators and, ultimately, service to the American people." APTS said all of PTV's translators are located in nonreserved portion of FM band, since reserved band is either full or unsuitable for new translators. With many translators forced to relocate to accommodate DTV transition, APTS said, if PTV has to participate in auctions for every move, "there could be a downward spiral in public television coverage."

Ad revenue for national cable networks jumped to $2.3 billion in first quarter, up 33% from same period in 1999, Cable Ad Bureau (CAB) said. It said national cable ad revenue has nearly doubled from $1.2 billion in first quarter 3 years earlier. CAB projected that national cable ad revenues for full year will reach $9.7 billion. Increased ad revenue growth comes as cable programming penetration surpasses 80-million home mark, according to CAB analysis of Nielsen Media Research data. CAB said 80.1 million homes -- 80% of all U.S. TV households -- now receive cable programming, up 2.2 million in year, but it neglected to mention that most of growth is coming from additional satellite TV homes, not cable homes. Both cable and satellite TV systems carry cable and broadcast programming.

Proposed digital audio broadcasting (DAB) systems show "reasonable probability of substantial improvement for broadcast listening compared to current analog performance," National Radio Systems Committee (NRSC) said following first phase of evaluation of in-band, on-channel systems proposed by USA Digital Radio and Lucent Digital Radio. NRSC, after meeting at NAB convention, also said it still hadn't received "substantial amount of information" from DAB proponents. Companies have until May 8 to tell NRSC that they will submit their systems to full independent analysis by NRSC -- www.nab.org/scitech/nrsc.asp.>