Public Media Policybase

Congress reacts hotly to station donor-list swaps with Democrats

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Suddenly, pubcasting is in for a severe talking-to, if not a whupping. The House subcommittee that held such a congenial hearing on CPB’s long-overdue reauthorization a fortnight earlier is now preparing a second hearing July 20 to take pubcasters to task for swapping donor mailing lists with the Democratic Party. House Republicans were angry last week when they learned that Boston’s WGBH did it this spring, and angrier when they heard there were other times. And tempers will rise as similar reports come in from other stations. WNET in New York and WETA in Washington told reporters late last week that they’ve traded lists with both Democratic and Republican groups.

System/Policy

PBS and Nesmith settle home-video dispute but are mum on price

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LOS ANGELES — The 63-month-old legal fight between public
TV and the former distributor of PBS Home Video, Michael Nesmith, was “resolved
amicably,” both sides told the U.S. District Court here July 7. PBS–appealing damages of $47 million levied by a federal jury in February–agreed
not to reveal what it will end up paying, said spokesman Tom Epstein, but
he noted that all settlements are compromises. “A happy finish for everyone,” said PBS’s lead attorney Jonathan D. Schiller,
as he left the courtroom. A grinning Nesmith sought out Schiller, his opponent,
and gave him an apparently gracious “thank you.” PBS President Ervin Duggan later wrote in a memo to his staff that the network
will pay the settlement out of proceeds from its self-supporting, revenue-generating
businesses, and services to stations will be “unhindered,” according to Epstein.

People

Rumors rampant as Ottenhoff steps down

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Chief Operating Officer Bob Ottenhoff is leaving the No. 2 position at PBS after eight years working for Ervin Duggan and the previous president, Bruce Christensen.

News of the change, already circulating in heavy rotation at the PBS Annual Meeting when Duggan announced it during the June 6 opening session, mystified station executives and even some PBS Board members. It added a new story element to what one former board member called “a range of colossally uninformed mispeculation” that Duggan was either (a) confidently moving ahead, (b) soon to lose his own job, or (c) both. High-ranking board members said nothing. Beth Wolfe, PBS’s chief financial officer since 1988, will take oversight of Ottenhoff’s departments, with the new title of chief administrative officer.

System/Policy

Lawsuits are latest fallout from 1996 staff revolt in Wichita

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The bitter conflict that led to the departure of the top two executives at Wichita, Kan., public TV station KPTS in 1996 has not yet been put to rest.  A leader of the staff rebellion, Candyce P. (Candy) Hoop, and her onetime assistant, Som P. Chanthabouly, filed suits in federal court May 7, [1999], charging that the station fired them in retribution for expressing workplace grievances three years ago. Though Kansas law allows plaintiffs to specify only damages “in excess of $75,000” in such lawsuits, the two former KPTS staffers are actually going for more than $1 million apiece, said one of their attorneys, Frank Kamas. Gloria Flentje, attorney for the station, gave the boilerplate response: “The station believes the cases are without merit and will defend itself vigorously.” The suits name not only KPTS but also the ousted longtime managers, interim and current presidents, and past and present board chairmen.

Michael Nesmith wins $47 million in video suit against PBS

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Almost five years after PBS sued its former home-video distributor, the legal action
boomeranged last week, hitting the network with a $46.8 million judgment. PBS said it was shocked by the outcome. “We’re going to take aggressive steps to
appeal this,” said Bob Ottenhoff, PBS chief operating officer. “I think the jury
didn’t understand the steps PBS had been taking all along to make this a satisfactory
venture.” But after PBS had lost hope, the court found, the behavior of its executives crossed a
line.

System/Policy

Gore panel endorses adding educational DTV channels

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An extra digital TV channel should be reserved in every community for noncommercial
educational purposes, the Gore Commission recommended last week in its report to the White House. These channels, the usual 6 MHz wide, would be granted more than seven years from now, or whenever broadcasters turn back their old analog channels to the FCC. The expected recommendation from the Advisory Committee on Public Interest Obligations of Digital Television Broadcasters was one of the most concrete in a report constructed of compromises between seven commercial broadcasters and 13 other members of the committee. Co-chairmen Norman Ornstein and Les Moonves “were trying very hard to get a consensus, which is a good goal, but I think the splits were simply too wide,” said Newton Minow, a committee member, last week. “The result is, you get the lowest common denominator.”

System/Policy

DBS ruling: FCC reserves 4% of channels for education

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Direct broadcast satellite companies will have to set aside 4 percent of their video channel capacity for noncommercial educational programming, the FCC said last week. For a DBS operation like DirecTV/USSB, with around 200 channels, that would make eight for education. The companies will get to choose the provider of each channel. The vote Nov. 19 [1998] ended a long wait for set-aside rules.

System/Policy

On to the White House

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The House and Senate resolved last-minute differences over public broadcasting’s fiscal 1991-93 authorization bill and late last week passed the three-year, $800 million measure. The bill also makes a variety of other changes, including requiring the Corporation for Public Broadcasting to collaborate with the public TV system to develop a new plan for distributing CPB’s national TV production money. The bill also requires CPB to establish a $6 million-a-year fund for independent productions. The Senate passed an earlier version of the bill October 7, but when it reached the House telecommunications subcommittee, Chairman Edward Markey objected to language requiring CPB to seek private funding to replace public broadcasting’s aging satellite program delivery system. Both sides agreed to a diluted directive for CPB to submit a report to Congress on the “availability of private sector rather than federal financing.” The House and Senate also agreed to postpone until October 1, 1989, a requirement that CPB devote its interest income to pro÷ gramming and provide producers with “grants” instead of “contracts.”

With these final hurdles cleared, the House passed the bill without comment about 5 p.m. Wednesday.

System/Policy

High court upholds authority of Arkansas network in debate case

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The broadcast decision that embroiled Arkansas ETV in a landmark First Amendment struggle ever since 1992 was “a reasonable, viewpoint-neutral exercise of journalistic discretion,” the Supreme Court ruled May 18. The high court’s 6-3 ruling overturned an Eighth Circuit Court of Appeals decision in 1996 that the state network had infringed House candidate Ralph P. Forbes’ free-speech rights by refusing to add him to the two major-party nominees in a broadcast debate more than five years ago. “This is a great decision for viewers,” and will let the network continue airing candidate debates, said Susan Howarth, executive director of the five-transmitter state network, according to the Arkansas Democrat-Gazette. “The majority opinion gives us as much or more than we thought we would win in our most optimistic moments,” said the elated Richard D. Marks, attorney for Arkansas ETV. Marks had pictured the Circuit Court’s 1996 decision as “a grave threat” to state-owned pubcasters that could undercut their ability to make editorial judgments.

System/Policy

Court gives WFUV fifth victory for its tower plan

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New York state’s highest court early this month unanimously upheld WFUV-FM’s right to complete the radio tower on Fordham University’s Bronx campus, despite complaints from the nearby New York Botanical Garden that the tower spoils the skyline. This was the fifth victory in various administrative and court appeals. For nearly four years the tower has remained half-built. The ruling by the New York State Court of Appeals upheld a local zoning ruling that permitted the tower. Remaining federal historic issues are being mediated between the university and the botanical garden.

System/Policy

Minnesota net endows itself with sale of mail-order firm

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With the $120-million sale of for-profit sister company Rivertown Trading to Dayton Hudson, Minnesota Public Radio (MPR) gains a secure subsidy while ridding itself of a longtime public relations problem. The Minnesota Communications Group–parent of MPR and the for-profit Greenspring Co.–announced March 23 it was selling the catalog business to the Minneapolis-based retail giant, parent of department store chains including Target and Marshall Field. MPR and Greenspring President Bill Kling and two other top execs share the bulk of $7.3 million in payouts under a plan previously laid down by their boards of directors. But the big beneficiary is MPR, which gets about $90 million of the net proceeds to add to its existing $19 million endowment fund, giving it by far the largest endowment in public radio. The endowment should give MPR annual income equal to the average $4-million-a-year contribution Rivertown made to the network over the last 10 years of its existence.

System/Policy

Merger: we’re not talking now, but we might be talking later

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It may be a simple question–are PRI and NPR talking about a merger?–but that doesn’t mean it gets a simple answer. To keep their options open, the presidents of the two networks are employing nuances that reach beyond the English of newspaper headlines and into metaphysical realms of potentiality. Asked to clarify their positions Feb. 19 [1998], NPR’s Delano Lewis said talks with PRI are still ongoing and PRI’s Stephen Salyer said they’re not, “currently.” Lewis was questioned at the NPR Board meeting after trade periodicals delivered conflicting assessments that both came from Salyer:

“NPR-PRI merger talks are off, says Salyer,” said the headline of Current’s Feb.

System/Policy

Managers try to form a more perfect union

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Austin, Tex. — The Convention of Stations on Nov. 5 [1997] created a Forum for public TV’s national decision-making, opening the way for new cooperation in the fragmented field as well as new varieties of bickering. The new Forum may find itself locking horns with PBS’s board, for instance. Several backers spoke of the Forum as a means of giving guidance to PBS and reallocating functions in the field.

Programs/Content

Researchers invite others to use Audience 98 data

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Public radio audience researcher David Giovannoni this week will present findings from Audience 98, a major study that aims to extend programmers’ understanding of listener behavior developed in the widely influential Audience 88. Audience 98 is based in part on a rare re-contact survey of 8,000 Arbitron diary-keepers who indicated in fall 1996 that they listened to public radio. The survey was designed to elicit their pledging behaviors, personal beliefs, and attitudes toward public radio. Giovannoni will release Audience 98’s first national report, “The Value of Programming” Sept. 11 when he gives the keynote address at the Public Radio Program Directors Conference in Denver.

System/Policy

How reform can minimize politics in presidential appointments

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This analysis by the editor and co-founder of Current describes methods used elsewhere to reduce the influence of political favor in naming boards. If patronage appointments are giving CPB a mediocre Board of Directors and top management, as retired longtime staffer David Stewart contends in the accompanying commentary, there’s a simple reform that’s widely used in such situations. That is: inserting a nominating step in the process, a reform that brings to bear the attention and efforts of additional interests and reduces the now-predominant role of partisan considerations. That’s how people are named to the board that runs the National Science Foundation. That’s how most regents of the Smithsonian Institution are chosen. On the state level, that’s how the Commonwealth of Kentucky picks the board that oversees Kentucky Educational Television, as well as state university boards.

System/Policy

The emperor’s old clothes:
it’s time to retailor CPB

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Nearly three decades of observing CPB close-up have convinced me that only an essential change in the way CPB Board members are selected offers some prospect of achieving the bright future projected for the organization by the first Carnegie Commission and the Congress in 1967.

System/Policy

C-SPAN steps in as buyer of WDCU in Washington

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As the prospective new owner of jazz station WDCU took constant heat over the past month from jazz lovers and public radio officials, another potential buyer was visibly waiting in the wings. The persistence paid off: Earlier this month, C-SPAN assumed Salem Communication’s $13 million bid for the Washington, D.C., station. Commercial broadcaster Salem, which owns one of the nation’s biggest religious radio chains, was facing a fight to close the WDCU transaction. A citizen’s advocacy group was set to file an FCC challenge, questioning the nonprofit bona fides of the corporation that Salem set up to purchase the station. NPR was considering filing its own challenge.

Development

PTV Weekend: Notes on Questions, Concerns, Strengths and Benefits

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James Fellows, long active in public TV’s national leadership and founder of Current, analyzed the PTV Weekend proposal, when it was published in June 1997, on behalf of the Hartford Gunn Institute, a fledgling organization he was trying to launch as a planning agency for the public TV system. See also the PTV Weekend proposal and Current’s coverage of it. The Hartford Gunn Institute is an independent entity that is interested in analyzing and encouraging promising opportunities in public broadcasting and telecommunications. It has no organizational or financial interest in the outcome of the research work which it undertakes. At the request of Lawrence K. Grossman, former President of the Public Broadcasting Service, The Hartford Gunn Institute was commissioned to explore with key leaders in public television their questions and concerns concerning the strengths and benefits of what has come to be called PTV WEEKEND.