In the FCC's proceeding on "Localism," Creative Voices and a broad coalition of public interest groups asked the FCC to promote creativity, diversity, originality, and just plain better TV by changing its rules to help independent producers not affiliated with the broadcast networks -- like the people who made All in the Family, The Cosby Show, Murphy Brown, and The Rockford Files -- to once again make TV for primetime.
With regard to independent programming, the coalition's brief stated that local broadcast television stations affiliated with one of the nation's four largest networks should only receive expedited license renewal if it can show it has aired 25 percent or more independently-produced programming in primetime. The brief said:
D. Television Licensees Should Receive Expedited Renewal Only When They Air Reasonable Amounts Of Independently-Produced Programming
In 2007, the FCC commissioned Austan Goolsbee, the Robert P. Gwinn Professor of Economics at the University of Chicago, Graduate School of Business, to study vertical integration in broadcast and cable programming. The study found that a mere 18 percent of total broadcast programming is not produced by a company that also owns a broadcast network. This marks a staggering decline from the over 66 percent of content on primetime broadcast television that was independently-produced during the 1992-93 season. Goolsbee observed that, presently, “the difficulty of getting independent shows on the air is great.” He hypothesized that the weak bargaining power of independent producers may limit their ability to convince television broadcasters to air their programming, and that “if a broadcaster can’t get part of the syndication profits from the show’s producer, they may require that show to generate higher advertising revenue to put it on the air.” As a consequence, the current market is distorted; independently-produced programming may be scrapped in favor of vertically-produced programming that would perform worse and garner less revenue for a station simply due to the inherent cost savings to broadcasters’ use of programming produced by their parent networks. Independent producers have suffered as a result of this discrimination; the number of independent suppliers of scripted programming has decreased from twenty-three in the early 1990s to just two today.
Most importantly, increasing access for independent programmers would have the beneficial effect of increasing diversity. When independent producers flourished, the creative community had a multitude of places to present their ideas. Because the current system fails to encourage network affiliates to air independently-produced programming, we propose that affiliates of the four major national television networks should receive expedited renewal only when they air independently-produced programming for at least 25 percent of the primary channel’s prime time schedule. To be considered truly independent, the programming must not come from any source where a major network controls more than a 33.33% financial interest in, is the distributor of, or owns the copyright for the programming. This independent production guideline will create financial incentives to create innovative and diverse programming outside the network structure.
The entire brief is available at the link below.
And kudos to Senators Dorgan, Leahy, and Kohl, who asked the Government Accountability Office, the federal government's main investigative body, to look into charges that media consolidation has reduced opportunities for independent producers and programmers. In a letter, the senators wrote: "It is important that we understand the current media environment, the reasons for the drastic decrease in independent programming and the impact government laws and regulations have on the media industry." The senators note that some 50% of primetime television programming was independently produced in 1989 but only about 18% is now. Also, the solons said indie radio producers have reported "difficulty getting carried on radio stations, or if carried, under unfavorable conditions."
A copy of the senators' letter to the GAO is below.
Senators, FCC Seek to Promote Independent TV Programming
