Tdetfiers Federal Communications Commission( *Low Power Television

DOCUME/IT 'RESUME

ED 254 203 R 011 515 MID .: UTHOR Carey, John

TITLE . An Assessment of-Low-Power_Television for. the

. Nonprofit Community. INSTITUTION Benton( Foundation, Washington, DC.; Corporation for P c Broadcasting, Washington, D.C. REPORT NO' 0-89776-089 -1 . vs DATE- 8 4 NOTE , 50P-ir PUB TYPE' Intdipation Analyses (070) Reports - Discriptive (141) .. -

EDRS PRICE MF01/PCO2 Plus Postage. . DESCRIPTORS *Broadcatt Industry; CommunicatIOns Satellites; Costs; Laws; Marketing; Models; *Nonprofit 11

41 . Organizations; *Program Development; *Program Implementation; *Programing '(Broadcast);

**Television . tDETFIERS Federal Communications Commission( *Low Power Television . - . . ABSTRACT .40 Ihtended to provide a general understanding of the opportunities and problems associated Oith low power television (LPTV) this xeport,deals with thd legal, technical, financial, and marketplace issues that should be methodically assessed in order to establish an LPTV service. The three chapters in Part 1 address basic issues and. provide a brief history of LPTV and the'translator service' that preceded it, outlipe Federal Communication Commissions regulations governing LPTV, and discuss transmission, channel ,. selectiqn, and aLtprnative studio designs for local program de origination. The market analysis of LPTV presented in Part 2 emphasizes small-market'applications for nonprofit operators. Individual' chipters describe a survey of nonprofit. grouptitthat have applied for LPTV- licenses; review competitive technologies such 'as cable, direct broadcast satellite, and bill-power subscription television; treat station/programthing models for LPTV, including cimmerciai and noncommercial applications; and analyze potential revenues for station/programming models. A concluding chapter i discusses issues associated with.the implementation of an LPTV station. Appended materials include lists of program and information d4 . t., resources. (LMM),

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. * , Reproductions sup lied by EDRS are the best that can be made * * 'from the original document. / * *****************************************************p*****************

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"PERMISEAM4TOREPKWUCEMS MATERIAL HAP BEEN GRANTED BY Corporation for Public Broadcasting

TO THE EDUCATIONAL RESOURCES FoRturioN cfmot otRicv An itssessment of Low-Power Television for the Nonprofit Community

A Report ibr The Benton Poundatio,n

fi:tp Publk Broadcasting.

Prepared by John Carey Grey4one Communicithms 1

:Preface

Part I: The Basics

1. Introduction 3 2. FCC Rules Governing LPTV 4

3. Planning and Buildingan LPTV Station. 12 Part II: Market Analysis

4. LPTV Applicants 19 5. The Marketplace 21 6. LPTV Station Models 24 7. Revenue Options 31 8. Conclusion 39 Appendix Programming and InformationResourcfs...41

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Preface the many helpful comments and suggestions provided *IP in relation to an earlier draft of -this -report by Robert This rert provides an introduction to low- Bedkarek, Philip Rubin, Caroline Sachs and Steven power televisioncurrO, with particular attentionto Symonds. In addition, I wish to ackno-wledge several nonprofit iiroups investigating low-power television for individuals and groups whose work proded valuable their communities. Such groups would include thcise re'sonrces fiat the report. In particular, they analysis herein who seek to build and own a .station as well as those draws from a report prepared by Block, Butterfield and who ,would provide progxamMing for a low-power Riely, Prospects for Noncommercial Low-Power Television, station. The report, including technical, regulatory and and a Corporation for public Broadcasting report, The marketing issues, is intended for the general reader Low-Power Television Guidebook Publications of the 4 who' seeks an understanding of the opportunities and Anierican Newspaper Publishers Association, National problems associated with LFTV. The information and Federation of Local Cable Programmers, Fayetteville analysis here should not be viewed as a substitute for Open Channel, and the National Institute for Low- engineering and legal counsel, that are required for any Power Television were also most helpful. Finally, the individual or group planning to develop a low-power report benefits from the published works of Kathleen TV station. Criner, Terrell Iamb, Jean Rice, Jerry Ricli.ter, Parry Low-poiiier television -offers an exciting oppor- T.easdale, Pat Watkins and Mary Wright. tunity for many nonprofit'groiips to reach wider audiences and serve community needs. Itcan bring John Carey television broadcasting into the hands of community. . colleges, localgovemment agencies, school. districts and civic associations that cannot afford to own or manage full-power broadcast stations. Establishing an LPTV service requires methlical assessment of legal, technical, financial and marketplace issue's. This report deals with all of these issues. V.is divided into two ?arts. Part I has three chaptersto 4 basic issues. Chapter Iprovides a brief hivory of low- power televisiok and the translator service that 'preceded it. Chapter 2 outlines theederal Conimuni- catiop commissiarOt ,(FCC) regulans governing low- , power television. Chapter 3 discusse transmission, ( channel serection, and alternative stu io designs for local program origination.-. r -Part II provides a miirke't analysis of'LPTV, emphasitng smallmarket applications for nonprofit operatA Chapter 4 describes a survey of nonprofit groups that have already applied for low - power. licenses. Chapter -5 reviews competitive technologies such as cable, direct broad.past satellite (DBS), and full- power subscription television (STV). Chapter 6 treats station/sragramm'in models for LPTV, including I and noncommercial applications. Chapter 7 a Potential revenues for the station /programming models developed in Chapter.6. The concluding chapte discusses issues associa'bed with the implementation of an LPTV station. Appendix materials include lists of program and information resources.. This report wfis prepared for the Benton " Fourndation and Corporation rfor Public Broadcasting. The opiniOns and views expressed, however, are those solely ofe author. I wish te thank and acknowledge J. ( Part I: The Basics e

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4 Part I The Origins of LIFIV a The Basics Low-power television is an outgrowth of television translator stations, which have been in operation since the late 1940s. A television translator (often located at a high elevation)receives a, distant TV 'signal from another station and retransmits it simultaneouslyon a different channel to reach a wider audience. An LPTV station is set up much like a translator except that it Introduction can 'originate programming as welt as retransmit the signal of another station. In simple terms, a low-power television station By the mid-1950s, nearly 1,000 translator stations transmits its signal with less power output than a were operating in the U.S.., most1in rural parts of the regular "full-service" station, herice reachinga smaller- western states. These early translator stations were geographic area than a full-service station. Onaverage,- "extra legal" in FCC terms. That is tiley were an LPTV,siwial can extend up to ten miles from the established without a license from the FCC. Efforts were transmitter, a full-power stationmay extend 50-60 begun to license translators and adopt a set-Of-rules foir miles. their operatiOn. Translators were restricted to 14 upper Low-power television is a simpler and less UHF channels (70-83),, and power output Was limited expensive way to broadcast television programming. to ten watts. These rules did not stop illegal operators.. Generally, construction costs are less than one-quarter Moreover, court actions and political pressure led the those of a full-power station,-and fewer Operating FCC to issue many Waivers. personnel are required. In addition, the FCC has s In 1966, the Board of Cooperative Edu &tional established a special set of rules for low-power stations Services (BOCES) in New York Statereceived.a that are intended to make it easier for groups to build waiver to ta6e incoming programs from various stitions and manage such stations. and rebroadcast them later Ip a mixed format, thus. Along with the benefits of LPTV, there are some. moving beyond the simultaneous rebroadcastofa restrictions. For example, LPTV has been designated a single, distant station. Subsequently, in .1973, the As secondary service by the FCC: The signal of an LPTV Alaska Educational Broadcasting Commission (REBC)1 sta tiomay not interfere with a viewer's reception of and Corporation/for PublOtroidcastirig (CPB) full -power stations, an ,e1 further, the low -power 'received a srAc tq csaiscrect lbw p8 (1:ninirTV station will be subject Lo loss of license if a new full- stations" in Aan villages-The:.'r-cmsigered service station is licensed to operate in)an area where them dilkiature" television 'stations. These stations the LPTV signal cackles interference. SecOndary status evolved into a large network of LPTV, motion serving less of a problemtin Altai areashere an LPTV , rural Alaska. In 1974, the.Roundup TV Tax District in operator could change to avoid interference Roundup, Montana, was authorized touse a translator with a full- service station- In jor cities, however, station for rebroadcasting programs reeeiced.directly very few TV channels are availe. Consequently, the from a satellite, rather tha;i a dist:Int TV station. These LPTV operator might have tout down if is were ievolutiongty forces led to low- power TV. "bumped" from a channel by a new full-service station * By ,spring 1983, more khigi 4,000 translator stations lic,pnsed to operate on a related frequency... (in the,traditidnal sense) were Toperating in tit; U.S. R In many other ways, low-power TV and full-. Approximately 65 per cent of these operate on VHF service TV have much in common: Prograttis may (...channels and 35 per cent on UHF. In additon,more come from rented video tapes, originate locally or be than 200 low-power stations are operating. The greatest fed by a satellite; studio and production costs may be concentration of LPT\ stations is in Alaska, and nearly inexpensive, moderate or" very expensive; revenue all are in rural arias. sources are varied and uncertain; and competition from More than 12,000 applications for LPTV licenses other new technologies is likely to be keen. For all have been filed at the FCC. Each of these potential these'reasons, the develtIment ofa low-power TV,. stations, as well as existing t'ranslat'or and LPTV ,. station 'requires the sante careful analysis and planning stations, are governed by the final FCC rules that were as a full-service station. released in April 1982. Chapter 2 presents these rules. N prociedires governing license applitcations. The com- FCc Rules plexity of these rules tefleT in part the large numr Governing of applications that has bet4i received at the FCCrand the equally large number that is anticipated. The FCC issued rules gove mg low-power television on April 26, 1982) This chapter should not be read as a legal interpretation, nor an exhaustive Channel Selection treatment. Many details are omitted, particularly and Interference those relating to engineering requirements for transmission. In addition, the final rules are subject to An LPTV station may occupy any VHF Or UHF petitions for change, alterations by Congressional channel between 2 and 69, except 37.2 The.station legislation and interpretations by the courts. The may itawn-tit at a power output up to ten watts VHF treatment here is intended to provide a reasonable and up to LOCO watts UHF. VHF channels include 2- overview of the major regulations governing low-power 13. UHF intludes 14-69. In addition, a station may television. A group that intends to apply for a license transmit at.100 watts VHF if the channel selqcted'is should seek legal ind engineering counsel. the Table of Assignmments.' The process of becoming an LPTV operator Low-power TV has beenuthorized as a _ involves foy steps: (1) qi,g an FCC application;2) secondaryservice. A series of general rules and specific issuance of a construction permit; (3) applicatiois- guidelines, relating to interference, accompany this suance of a license after the station has been bu status. The general rules include and (4) day to day operation of a station. LPTV will not be authorized where it will General, inquiries to the FCC' regarding cause objectionable interference to reception of a regulations, should be directed to- full- service station. Mass Media Bureau If a low-pOwer station causes inteiferewe to a Federal Communications Commission 5, full-service station, the LPTV operator must 019 M.Street *correct thecause of the interference or go off the WasingtbnieD.O. 254' /' air. Thivottgatierkholds even when the LPTV . .7 station is licensed before the full-sarvice station. ral PrinCip )Interferencemust be proved by the cony plaining party. The full-servic.e station must, \.1 The F TrIles for lower television, very however, then cooperate (e.g., by conducting 4 uch in line with recent deregu tion trends, provide a joint tests) with the LPTV operator who attempts minimum of regulation compareto full-service to find a solution to the Interference problem. television and are intended to let "marketplace forces" LPTV, as a secondary service, cannot take exercise strong influecce on the development of LPTV action at the FCC against a full-service station or services. Nonprofit low-power applicants receive no ..... other prim.i. ry'service (e.g., land mobile radio) if benefits under the rules, but minority and rural license the.litter, while operating under the terms of applications do receive preferential treatment. In its license, causes interference to the low-power addition, applicants-owning fewer than three other sigi\al. mass media properties will receive preferential treatment, as long as those other properties are not in the

same market as the low-power appliirt. . 2 Channel 37 is reserved for radio astronomy: In addition, there While the rules governing ownership and operation are some restrictions for channels 14-20 in areas where land of an 1:131V station are simple and straightforward, mobile radio licensees operate. technical rules about selecting a channel are derailed I The FCC Table of Assignments is a published list of channels and tough. In additi, manyof the rules deal with. the dating back to the early'1950s. It allocates specific change6 to specific regions. The table attempts to divide available channels in the U.S. Ifairly by alkicating more channels to densely populated I The rules are printed in the Federal Register, Vblume 47, No. 96, regions. Thus, major cities received many channels while rural . pp. 21468-21528. Those seeking a copy may obtain one at a areas were assigned fewet channels. Today, however, nearly all kjbrary that receives the Federal Register. Alternatively, a copy may channels on the Table of Assignments designated for major he purchased from Downtown Copy Center, 114 21st St. N.W., . markets are being used. Some Table of Assigiiment channels are .Washington, D.C. 20036 (202) 452-1422. available in smaller markets. / 4. 9 4is a These general nries are translated into specific be at least 210 miles away if there is no offset in the guidelines when one is applying for a license. The FCC station transmission.' provide0 guidelines for choosinga channel that is not An LPTV transmitter may be located closer to a likely to cause interference. But the LPTV station bop) co-channel or adjalInt channel full-serviCe station than the ultimate bur en of not causing interference to any-4the Table 1 rules suggest, if the LPTV channel does full-service signon any TV set that picks up the not interfere with a full-service station within its Grade station. An LPTV station that complies, with all FCC B contour. This is the second level of rules for channel rules and nonetheless causes interference to a full- 'selection and must be met by all applicants. Those who

service signal must eliminate the interference or go off meet the first-level rules, (Table 1),Ifiowfver, are. the air. presumed to meet second-level rules. The Grade 13 The FCC has established a two-level set of rules contour is an area within which the signal of a station (or choosing an available channel. If the applicant , can be received at a defined level of strength It is the meets or exceeds the first -level rules (presented in weakest area of television- signal coverage. The aie? Table 1), there will be no problem in the processing of which.receives the strongest signal strength is ratted. the application and, probably, no interference problemt. City Grade, while the area with moderate signal # in the 'operation of the station. Under these circum- strength is called 9-rade A. . - stances, an applicant rawd not be concerned with the The Gradecontour, which must be protected, second level of rules, which deals with protected includes those areas receiving the following signal -

`contours of existing stations. , *

`Channels 2 -6=47 dBu Table 7-13=56 dBu . _14-69=64 dBu First-Level Rules for Channel Selection An LPTV appliCaht must not interfere with existing low-power stations and translators. Here, the FCC has Distance Fron; ' Full-Power Station Power Station adopted, a seniority system which protects licensed Rationsagainst signal interference from ne%LirTY VHF co-channel (no offset) 210 miles stations. The protected levels for a low-power station VHF ro-channel (offset) 150 are the' following: VHF +/ one channel 90 j UHF co-channel (no offset) 210 Channels 2-6=--62 dBu UHF co-channel (bffset)- 150 7-13=68 dBu UHF +/ one channel 75 13-69=74 dBu UHF +/ 2, 3, 4, or 5 channels 20 UHF + 7 channels 60 UHF 14 channels 70 UHF 15 channe,,IL 75 These protected' contour levels apply only to inter- ' ference from another low-power station. Two low: Source: FCC power stations also may, upon mutual agreement, Note: These guidelines assume that the low-power transmitter is accept interference from each other. Under these' NAP .not unusually high powerabove 20 kw UHF ERP or . circumstancesprotected contour levels are irrelevant. 100 watts VHF ERPand that the transmitting antenna., In order to apply protected contour levels to the heightis not matey than 5(X) feet dbove the average terrain.

4 Offset transmission means that the station hroadt'asts slightly off Using the First-Level Rules a normal frequency, in order to reduce potential interference with a co-channel, distant station. If there is an offset in either station's In order to use these rules, an applicqnt must transmission, the co:channel LPTV station should he 150 miles- away. Aiksadjacerit channel, 3 or 5 in the example above, should investigate all existing full-service'stations within 210 he at least 90 miles away. The UHF rules are somewhat more miles (4 the proposed transmitter site. If an applicant complicated since higher frequency transmission can interfere with proposes to transmit on channel 4, any existingfull- a larger number of adjacent channels, but the chart is read m the service station on channel 4 (i.e., co-channel) should same way.

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selection of a channel, a Series of calculations is./ the cable area. The seniority system, however,'will required, which is beyond the scope of this repo& .favor a low-power operator who_precedes the cable system in the area. Stations Near Mexico and Canada land Mobile Radio Agreements with Mexico and Canada concerning low-po'Wer stations near their borders are pending. Ifa Land mobile radio shares some spectrum space proposed low-power station is beyond 250 miles from with television broadcasting. Therefore, interference either border, the existing FCC rules apply with no arise between land mobile radio and television. further qualifications. A proposed station within 250 S. is7sLower -power TV,is a secondary service in miles of either border may be affected by the relation to land mobile radio. LPTV cannot cause agreements depending on the proposed poWer 'output interference to land mobile radio and must accept of the station and its position on the VHF or.01-IF interference from such services operating within FCC band. Those rules, however, were not finalized when rulePotential interference from land mobile radio is this report was being prepared. more acute in large markets where such services are very active. Cable TV An LPTV applicant should exercise caution in applying for channels 47, 13-21 and' 69. These is responsible for In general, the LPTVstatioi channels may receae interference from land mle any interference it creates for a cable operator or jail° as well as point-to-point and FM radio ons. subscriber when the cause of the interference can be Investigation of this potential interference shoube traced to a violation of FCC rules by'the low-power one of the task's undertaken by the consulting engineer. operatbr. As long as the low-power operator stays In addition,'a potential applicant for a low-power within the rules, the cable operator will generally be station near.the Gulf of Mexico should investigate responsible for solving in( problemii athe special channel restrictions and potential interference in cable head-end or in subscriber homes. that area. _ The FCC will deny an LPTV application if a

cable operator can demonstrate that the low-power 1 signal will interfere with the cable system's off-the-air reception of a distant TV signal. For example, a cable Application Standirds system that is at the edge of the Grade. I3 contour for a Processing Procedures & full-service station may claim that the low-potver signal will interfere with its (the cable system's) off-the-air Selection Criteria pickup of the full-service channeL When such interference occurs after an LPTV license is issued, the The FCC rules governing applications, processing FCC recommends that the parties resolve the problem and selection are complex. Two points should be .privately; the FCC will intervene only as a last resort If emphasized:, the problem is not resolved, the FCC will use a seniority system in determining who is at fault That is, 1. Ark application must be free of errors and complete, the operator (cable or LPTV) who was first in the area or it will bereturr46 This tough standard, adopted will receive protection. in April 1982, affects Ill new applications and Similarly, a cable operator who uses an empty existing applications that had, not been processed at channel (e.g., channel 3) to input the signals from a that time. c converter box may petition the FCC to deny a low- If an application is returiled by the FCC ancilate`i power license that might interfere with channel.i.in resubmitted, the applicant will lose his place in line and may even be iejected if a published cut-off date has passed.'t

5 The interested reader is referred to FCC Broadcast Rules Sectkon 73.699. In addition, engineering issues relevant to transmission which have been' omitted here, including Terrathoghiekling, 6 The FCC notes that it is particularly important to include details Receiving Antenna Front to Back Ratio, Offset Operltion and about the-transmitting antenna(s), with model number(s), a correc9 Frequency Tolerandui, and Circular Polarisation, are covered in the polar diagram including the total polar plot, accurate Height Above Federal Register. Vol. 47, No. 96, Tuesday May 18, 1982, pp. Average Terrain (HAAT), and precise coordinates for the proposed 21477-21478. site.

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1 2.Applications from rural areas have many advantages. competing applications must be filed before the wt-off They are exempt from the .application.freeze in place date or lose the opportunity to apply for the competing since April 1981. Moreover, they will be processed channel space. TWnotice also provides the "exception" before applications from larger markets. to the applicatiottfreeze discussed earlier. That is, if a Tier 1 application is placed' on a cut-off list, a Tier 2 or Three general areas are critical to the LPTV Tier 3 applicant in apearby market can apply, if the application process: the tier system; cut-off lists; and channel they seek in the Tier 2 or Tier 3 market comparative criteria for selection. would be eliminated by the FCC granting a license tok the Tier 1 channel ft Mei- the "A" cut-off list deadline passes, then The Tier System original applications acid acceptable competing applications are placed on a "B" cut-off list. After The FCC has been deluged with LPTV4appli- publication of the "B" cut-off list, competing appli-, cations. To deal with this overload, the Commission cations for the channel will not be acceptedAn has divided applications into three groups or "tiers" application placed on the "B" cut-off list, however, is based on size of the market': still subject to Petitions to Deny. Petitions to Deny are Tier 1 represelits rural areas and many small important for the LPTV applicant since they provide towns. It includes applications far LFTV an opportunityftil cable operatori, full-service stations transmitters to be located twee than 55 and other potential competitors to raise 'objectigns miles from any of the top 212 TV markets. before the FCC. Tier 2 represents smaller cities and somell' Many'of the applicants on the"B." cut-off list will suburban areas. It includes applications for be mutually exclusive, in granting a license to one LPTV transmitters to be located less than group the FCC must deny a license to another 55 miles from the center of TV markets .,.apXant or applicants who seek "the same channel or 101-212. adjacent channels in a given geographic area Indeed, a Tier 3 represents large-and medium-size cities majority of applications oil file at the FCC are as well as some of the larger suburban areas.. mutually exclusive with one or more other applicants It includes applications for 1PTV trans- on tschnical grounds.. misters to be located within 55 miles from I. the center of the top 100 TV ets. ,The Tier 1 apvlicationsLbeing now. This In set to deal with the lame volume of group is exempt from the freeze on applications in mutually xclusive LPTV applications, the FCC has place since April 1981. Thus, new Tier 1 applications instituted a lottery for awarding construction peritits. can be filed. Each month, beginning its fall 1983, the FCC Processing of Tier 2 applications is expected to designates several geofraphic areas Where construction `begin in late 1983 or early 1984. The proceming of permits will be issued. Rural areas are to be processed c Tier 3 apptitions will follow Tier .2 and will likely be first. Each application that has been accepted by the delayed until 1984 or 1985. Tier 2 and Tier 3 FCC and placed on the cut-off list for a designated applications are frozen. No new applications will region is put into the lottery pool. Certain applicants accepted, with one 'exception to be mentioned. receive a weighted preference in the pooL A 2 to 1 preference is given to applicants that Cut-Off lists ..own no other mass media properties.This means After an application is accepted by the FCC, it is that such a group has two chances to be picked eventually placed on an "A" cut-off list. The in the lottery, whereas a group with no preference publication of this 1includes a date withwhich has one chance. others tnay'offe ring applications. Indeed, A 1.5 to 1 preference is given to applicants- owning one or two broadcast properties, but no preference is given if any of the propeities are in 7 A list of the top titers is published in FCC Public the same market at the low-power applicant. Notice #07820, Te siun Channel Utilization and available at the Downtown Copy Center, 114 21st St. N.W., Washington, D.C. A2to 1 preferenceis given to applicants that 20036? have more than 50 percent ownership by a . . 5 .

a minority individual or,grOup.Ownership. is noncommercial license.'This may ,have important broadly ere is no requirement that the implications for nonprofit, noncommercial groups. If a owner(s) open t tation. potential source of funding requires a group to hold a . P, "noncommercial broadcast license," the LPTV license Many a'clditiolidi preference criteria that were will not qualify. proposed or discuired (e.g., nonprofit status, noncom- meecial programming, arid first -filad applications) have Trailisidng in licenses I been rejected. Although the lottery will speed up the 4 awarding of 'construction permits, it likely will require There are minimal restrictions on the buying and 4.. three years for the bacIdoeof existing appliCationetd selling of LPTV licenses. Transfer of ovmership0 processed. Moreover, successful lottery winners in permitted ow year after the incense is issued. Further, major markets should anticipate challenges by existing the sale is-not considered a "major nullification" to full-service stations and cable operators on interference the license. This means that it will not come under- grounds. These challenges could delay- or lead to a close scrutiny by the FCC-unless a third partyfiles a denial of the LPTV license by the FCC.-' petition taodeny the transfer. Ownership and License Other Licellse MOdifications Restrictions . Two additional license modifications merit men-

tion. One is a mirror modification; the other is major. . Ownership Restrictions A translator station thatsseeks to-become an There wnership restrictions per se. LPTV station,8 e.g., in order to-originate pro- Proposals to h wnership of LPTV by networks, gramming, can do so by a simple petition to the cable operators and other media groups in the same FCC. This is a minor modification and shoUld market have been rejected. In addition, there are no' encounter no problems as longa;-the station is limitations on how many channels a group may own not changing its transmission power, antenna site in bne area or nationally. Further, wry stations may or other major ertnecting feature. operate individually or as part of an- LPTV network. A licensee that seeks to change the transmission power, frequency,- transmitter location- or other construction Timetable major engineering feature of the station will be subject to more rigorous review. Such changes' FCC application Form 346 is an application for a are considered major and will be treated virtually construction permit, not a license. Once a like a new license application. The application construction permit is issued, a group has one year to will be put on an "A" list where it will be subject build the station, obtain a license, and begin to competing applications and petitions to deny. operations. If the group fails to do so, it runs they risk of loSing its claim on the assigned channel. Upon completing construction, a group must Station Operators formally apply for a license, which is awarded with minimal review, as long as the construction has met FCC rulesigoverning the operation of an LPTV the standards in the original application. Upon issuance station are considerably relaxed compared to a full- of a license by the FCC, the group must then begin service station and enable groups to reduce operating operations. costs. For example,dally operation of an LPTV station, requires minimal engineering personnel. License Termi All transmission equipment, however, must meet FCC standards. Further, the transmission must not A license is issued for five years. No distinction is made between a translator station and an LPTV station 8 In a formal sense, she distinction between a translator station and M terms of the license. Thel,way a station operates will an LPTV station is disappearing.The terms, however, are still used affect whether and how other rules come into play, but commonly to distinguish a station that merely retransmits adistant this does not affect the license designation. Further, no broadcast station (a translator) vs. one which originates pro- distinction is made between a commercial license and a gramming or carries taped materials andsatellite services (LPTV). 13 8 mt.

violate FCC rules governing interference thatan LPTV programming, or to ascertain community needs and signal causes to the reception ofi full-service station's serve those needs. Further, there is no minimum signal. Violation of these rules can force the LPTV' number of hours pet day during which LPTV stations statioti off the air. Among the most important rules , mustbe an the air, and no program logs are required. are But, a station that goes off the air completely, for 30 A translator station witlia modulator (ix., an days stands to lose its license. LPTV station capable of originating a broadcast) Low-power TV may provide any form of must be monitored for tecontinuous minutes programming authorized for broadcast use. Thus, per day. This observation of the,off-the:air signal. private communications are prohibited. For example, can be do remotely. an LPN station cannot use its transmission tCor point- to-point telephone or data communications. New, Miring loco origination froman LPTV station, broadcast servicessuch as teletext are permitted under an operator mist be This person must FCC rules. hole( at leasta Restricted Radio Telephone Operator's permit. The operator may be present. at the transmitter site, a remote contra point, Or Statutory Content Rules the locatior!.from which the program is originating.. In addition, the station must broadcast its . Certain statutory rules governing broadcastcon- identification czill letters during local origination. :tent will apply to LPTV. These include prohibitions

There isno need to broadcast the" LPTV). and yestriclons relating to obscene materials, plugola, station ID wheti retransmitting the signal of payola and lotteries. - another over-the-air station. , The Faimesk Doctrine will apply to LPTV in a limited way. Briefly, the Fairness Doctrine requires Stations are required to conduct engineering tests broadcasters to cover controversial issues in such a way once wear to ensure that transmission equip- as to present mbre than one side or opinion. In nient is meeting the terms of the license. In addition, a broadcaster may be required to give free, addition, an LPTV station must keep maintenance equal time to a group claiming that its 'position on a controversial issue was not presented or was presented That are pa specific rules concerning the quality unfairly. LPTV willcome under the Fairness Doctrine of the broadcast signal in terms of transmitted only in relation to its method of operation and the sync.piilse, blinkingwaveforms, color burst and involvement of station managemknt incontent. For audio distention. COnsequendy, more inexpensive example,. some LPTV stations will offer satellite-relayed production equipment can be used in LPTV movies on a subscriptiopbasis. They are not likely to programming. be affected by the Fairness Doctrine. If an LPTV operator provides local origination on controversial An LPTV station must conform td the rules of subjects, the operator may have to cover the issue in a the Emergency Broadcast System (EBS) when balanced manner or give air time to an opposing tunctioningith a local origination mode. But the group. The group seeking air time, however, would be operator does not have to purchase the special required to submit its materials in a format that is tone generator used by full-service stations compatible with the station equipment and method of during EBS tests or an actual emergency. operation. Similarity, an LPTV operator who accepts local Auxiliary Services advertising will be required to sell political time to candidiktes during an election. The candidate seeking An LPTV operator is eligible to apply for , time must conform to thestatibn's equipment auxiliant broadcast frequencies, e.g., microwave fre- limitations and method of operation. quencies for studio-to-transmitter links (STLs), intercity relays, and remote pickups from on-the-scene reporting. Network Affiliation Programming An LPTV station may become a network affiliate. There are no specific program requirements. An The same rules governing full-service network affiliates LPTV station is not required to provide anylocal apply to urn/.

9 14 tt Mandatory Cable Carriage may say that itdoes not have the legal right to grant such consent since it doesinot own the programming. Currendy,it operator is required to carry on In the past, full-service stations-have often taken the his system all full-service stations in the local area The position that they cannot grant consent, but would not new uriv ruletdo not requiremandatory ca.rsigte of a object to retransmission. In essence, the letter of the. low-power station by a local cable operator. - law was not met but no legal consequences followed. An LPTV operator who Seeks to be carried on a The issue of rebroadcast consent will become . local cable system must negotiate privately with the more complex .for LFTVunder the new rules. If the cable operator. LPTV operator seeks to substitute some, commercials in arebroadtastiransmission, consent Must be obtained from the originating full-service station. The 'Subscription Television (STV) full-service operator has some incentives to migatiate since he will benefit from the extended reach of station An LPTV operator may offer a subscription programming andcommercial& Inmany instances, television serxice, or pay TV. In this the however, she commercials are part of a nati&al feed station scnunliles the sigma To receive programs, from a metv;ork. The IOW station does not have the homes must have a special box attached to theirTV right to negotiate over such programming. Moreover, and pay a monthly fee. The sped's! box may besold to- in the caseof prerecorded materials leased by the full- subscribers or leased as part of their monthly fee. ,service station, those who hold the rights to.such LPTV may operate an STV sertice in any market, materials may object to an LPTV operatot who There are no limitations such as the"complement** substitutes,commercials, even if the full-service station four" rule that applied to full-service STV operators "looks the other way." until recently-'° In addition, there are no requirements It may become difficult for a commercial LPN to offer: free services programs that are not operator to use programmingfrom nearby fulPservice scrambled and therefore can be viewed by nonsub- stations, unless the programming is owned bythe scribing homes). station (e.g., local news orsports)7The copyright laws, it appears, will encourage LPTV operators toI Copyright Liability programming chrectli from those who hold tights m it- :An-LFTV operator shares the same copyright liabilities as a, full - service station. The operator must Applying for a Station negotiate contracts with those who hold the rights to copyrighted materials in order o.broadcast those The initial-document required to appltifor an .materials. LPTV license is FCC (Revised) Rain 346, available Contracts for prerecorded ,programming (e.g., a from the Forms Distribution Office at the FCC. Art dociwentary film or an old TV series) are reasonably apOicant relay file for any number of stations, but only straightforward, with a rental fee based upon number one channel may beassigned to each station, and a of users and relative size of market. Contracts for separate application is required. for each station. satellite services (e.g., a pay movie service) are likely to Most applicants will require legal, engineering and be more "fluid" until such time as LPTV industry financial counsel in filing Form 346. This is particularly precedents exit.' Chapter 6 will cover this issue. the use under the new rules in which an application To retransmit the signal of a nearby full-service must be error -free and complete, or itwill be returned. station, an LPTV operator Must obtain consent from Bid it is possible for nonspecialists to do much of the that station. The FCC states that consent cannot be leg work required in Form 346 and thereby reduce the unreasonably denied. In practice, however, a Station cost of outside consultants.

Who Can Apply Now? 9 Readers should be aware of some proposals being ccauidered in Congress, which could affect this. Those who seek a license in an area more than I° The complement of four rule stated that a fulservice STV S5 miles outside the top 212 TV markets are eligible station could operate only in markets where at least fourregular applicants. Such applications are this rule for all to file, that is Tier 1 stations were operating. The FCC has eliminated effect since April STV operators, full-service as well as LPTV. exempt from the partial freeze in

10 15 . . 1981.eln addition, two other forms of applicsitions are with a channel on a 'published cut-off list of Tier exempt and can be submitted: applicants..To determine this, one must monitor the published cut-off lists. A number of consulting groups Applications by existing translator license holders are available .to perform this service." to change their transmission from Channels 70-83 to a channel b,eltw 70. Many translator stations Foim 346 were authorized to use these high channels, but the FCC now wishes to free those channels for Form 346 contains seven sections, three of which land mobile radio uses. will be covered here. The other four sectionsgeneral Applications by license -holders who wish to information about the applicant, citizenship and legal*" resolve an interference problem with a full- ralffications of the applicant, equal, employment service station. ..46tement, and certification of the application- -are .reasonably seraightforward. Finally, there is a special group of Tier 2 and 1. Financial. Qualifications. An applicant must demon- Tier 3 applications: applications for channels that are strate that he has the financial resources to construct mutually exclusive with a Tier 1 channel applicant. the low-power television station and operate it for Such'mutually exclusive, competitive applications can the first tlute months. If loans; grants, donations, or be fit by a Tier 2 or Tier 3 group only when a cut- other promissory funding for the station are relied of1'of Tier 1 applications is published. upon, there should be some written evidence, of their availability. 'Typically, this would be in the form The First Step of loan commitment letters, pledges t writing from people who have agreed to make donations to the If a group is interested in obtaining an LPTV station or, in the ca.& of grant requests made to lisetse.and it is located lutside the maAor cities, a government agencies, a copy of the grant application. teassseiabk first step, along with a general market submitted to the agency. analysis, is to seek the counsel of an engineer who will 2. Program Service Statement. The. applicant is required do the following" to outline Oat typesof programming will be -.1.Determine ifyour area falls under Tier 1. provided. If the station will operate as an STV service, this ihould be stated, along with a detailed 2. Conduct a frequency search. This will determine description of the proposed Sr" system and a, which channels in your area 'e available for LPTV statement about the manner in which decoders will transmission., At the same time, the engineer can be pryvided to the public (i.e., sold or leased). ascertain if any pending applications at the FCC are mutually exclusive with channel(s) you seek. 3. Engineering Data and AntermaSite Irifomtation: The engineenng section of the application requires 3. Determine if any of the pending, mutually exclusive detailed, accurate information. The design of the applications at the FCC have been put on published system and selection, of an available channel requires cut-off lists. If they have bin placed on such a list an experienced engineer. With sufficient cooperation and the deadline for competitivelpplicati9,ns has between the applicant and the engineer, the engineer passed, you cannot apply for a mutually exclusive need not visit the site. channel.* 4. If a channel or channels are available it your area Other Forms Documents and they have not been published oncut-off list, obtain appliCation Form 346 from the FCC and An environmental impact statement may be begin the process of planning/designing/applying for required with the application for an LPTV facility. In a license. general, if the tower does not exceed 300 feet and the

If a group determines that it is in Tier 2 or Tier 3, it may still follow through with the second and third steps above. But it is not able to apply for a license I I For a list of consulting attorneys and engineers, see Television until the freeze is lifted for its Tier group. One Factbook (Service Volume), Television Digest, Inc., 1836 Jefferson exception: thy channel sought is mutually exclusive Place N.W., Washington, D.C. 20036.

11 16 station is not located tfi ce(tain prohibited .areas, the 'equipment to enhance one of the basic station construction of the station will not require this components. statement. The FCC is not the only agenCy concerned with 'Transmission-Options the building of a low-power station. Arr applicant frequently must deal with local zoning and permitting Selection of a transmission site, tower, antenna, authorities and get'approval from the Federal Aviation and power output depend on cost, channel availability Administration (FAA). FAA approval may be necessary ' and station reach. The transmitter, tower and trans- if the station will use a new tower, or if the height of . ng antenna must be locatedtogether. The location .an(milting tower is increased by the installation of a ould be as high as possible, and there should be a low-power transmitting antenna. The matter of local clear path from thee antenna to the service areas. Tall zoning and,permits can be handled by the applicant at buildings and mountains that block the signal will the local level. The appliCant's consulting engineer can reduce the station's coverage. usually determine whether a tower constitutes an The simplest and most economical location for a ., airspace problem, requiring notice to the FAA. low-sow r station is existing. radio or teleyision Alternatively, the applicant can obtain an opinion on station. Although such loca may eliminate some whether notice is required by consulting a regional otherwise available channe r the LPTV. operator, FAA' office. If notice is required, the procedure is there are three major advantages in sharing a site with relatively simple: a one page form (7460-1) with a few an,existinrination: exhibits. If the Proposed tower does have an impact on air safety, obtaining FAA approval can be a lengthy .The LPTV operator will not hive to build a new .` process. tower for the transmitting antenna. If alowiDowerstation plans to a microwave It may be possible to share' space in the existing linli from studio to transmitter, or stati to station, astation's building. There could be savings in the . . FCC Form 313,must be filed. sharing of technical staff' An existing station's tower wilt already have -Planning and Buildling environmental and FAA clearan-ces. an irapTvStation Coverage This chapter covers seven. l factors that may influence channel selection; where to place a trans- The coverage of a low-power station will depencL miner, power output and antenna options; large and largely on the power of the station, the type of small studios; on-the-scene production equipment, transmitting antenna used, and the height of the sateAte receiving dishes, and microwave links; and antenna over the surrounding area. equipment needed for pay TV. It is important to assess The FCC limits the transmitter power output of all of these option& as well as the final pacivge of LPTV stations to 1,000 watts for UHF channels, ten equipment in terms of four questions: watts forVIA channels noton the Table of Assignments, None of the Table. of Assignment What does it cost?t? Channels is available in major cities, but some are Will it increase the reach of the station and the available in rural areas. The difference in power levels quality of the signal? woes not give a particular advantage to UHF since higher frequencies require more power to achieve the c Does it help in providing programming that the same coverage as lowerfrequency channels. community needs and wants? No FCC limits are placed on the height of an Can. it be supported by anticipated revenues? antenitl, but significant costs are associated with building a tall tower. For this reason, there is a strong An LPTV operation consists of a transmitter,' a incentive to share a tower with an existing station or transmitting antenna on top of a tower or building, a locate a small tower on a tall building or nearby building to house the transmitter, an FCC license, and mountain. Table 2 illustrates how antenna height can a source of programming: Following are optionsfor affect station coverage when all other factors remain each of these components or.descriptions of add-on constant. 1 7 12 cable2 0Table 3 Effect of Antenna Height Jr Illustgathe Low-Power TV (Above Alierage Terrain) Sta,n COverage r on Station Coverage Transmitter Height -Approx. Antes Height 'Approx. Station Signal Strength ing: VHF Above Useful M2ove ((hannels&sterna Avg. Station UHF (ERP) . Average Terrain (Grade B Contour) 2-13) Gain ERP Terrain Catenate 1000 watts 100 fret 5miles 1 watt 5 5 100 feet 3.5 miles 300 1 watt 5 5 500 500 12 10 watts 5 50 100 '6.2 1000 16 ' 10 watts 5 50 500 14.0 Source: it'd . UHF Note: The Grade L3 contour M Tal;le12 represents the, outer limits of (Channels covenage. Station coveragi most households (e.g., those with nt 14-69) Outdoor antenna) is less than Qrade B contour units. %/r 100 watts 15 1500 100 , 6.5 100, watts 15 1500 500 12.5 1000 %raps 15 15000 100 10.0. Antenna type also can have a strong impact on 1000 utts 15 15000 500 21.0 the reach of a station. The transmitting antenna has the potential to concentrate tht signal, thereby multiplying Source: CPB the transmitter power_outpui to a higher value. This multiplication ability is called "gain." For example, antenna on top otthe mountainfocused down on using a transmitting antiinna with a gain of 10 with a the communityrather than to constructa tower in 1,000 watt transmitter yields a station power of 10,000 the middle of the community and place an omni- watts (or 10 kilowatts). This powerthe Product of directional antenna on top of it. transmitter output, potential loss, and the antenna Figure A.illustrates the transmission characteristics ''' gainis referred to as effe've radiated power (ERP). of these two antennas. Station "power" usually rs to the ERP. Antenna height and ERP most directly influence station Figure A coverage. Directional ;111. Omni-directional Table 3 illustrates how transmitter power output, Antenna Characteristics antenna gain andanknila heightcan affect the reach of a station. The elements in Table 3- are not the only ones affecting station reach. The terrain, specific channel assignment, and percentage of homes with outdr receiving antennas also WIll affect reach. Nonethel Table 3 provides a useful, if simplified, model of e major elements affecting station coverage. One additional element deserves mention: 'propagation pattern Omni-directional Directional of the antenna. . There are two general types of antennas. An omni-directional antenna transmits a signal in all directions. Other antennas can focus the signal in a Site location, antenna gain, propagation patterns particular direction. These directional antennas can and antenna height are important when the service transmit much farther, but along a narrower path. The community is scattered across a "'wide area or bunched choice of an omni-directional or directional antenna in nvo or three clusters. Some groups have applied for will depend, in part, upon the location of the more than one license in an area so that they may transmitter in relation to the population. For example, reach two or three towns in a.general area. Figure B if a comthunity is located on one side of a nearby illustrates how two transmitters can be clustered to mountain, it might be cheaper to place a directional serve such a population.

13 1 'El Figure B service license on the chanNI and the IPTV A Simple LPTV fluster. operator could bebump'ed from the channel Also, many vacant channelsire used by translator stations. Thus, a group cannot lise the4vbk alone to pick an available channel Furthei inyestig4tion will be required.

3. Ceintested channels.Anumber of groups monitored the FCC published cut-off lists.of channels sought by .other groups and filed a competing app "on. The vast majority of applications currendy on- -involve groups competing for the same channel or an adjacent, mutually exclusive, channel. In mime cases, this strategy may represein an attempt to save money on engineering costs (engineeringresearch having' . already been perfortned)..In most cases, however, the- A A five -watt (VHF) LPTV station with.a small gain, omni- cornpetitive filings re present the reality of major' direaional antenna. It is located in the center of a town Markets: everyone must compete for the same with 1000 homes. The station ishousedon the campus of 177- frequencies.. a community college and originates programming. . . Most groups who ultimately receive an LPTV B A 100-Watt (UHF) translator with a high gain, directional lit follovl the first choice and apply for a ' antenna. It is located on a mountain and relays the signals AP,,m6t unlisted channel. from station A to 5,000 homes located along a narrow If many choices emerge in a channel search, a wish to consider two or thee additional factoin making a selection: In general, higher channels)4re uire more energy Choosing a Channel to transmit the same signal overthe same, ,distance. In planning a station, there are three general options for choosing a channel,each with advantages Lower UHFclaimIs have somewhat better and disadvantages: signal loss,characteristics than higher UHF channels. 1, VaZant waisted channels. The strongest option is to find a vacant channel, not listed in the Table of VHF is more advantageous than4UHF in Assignments, that meets all of the interference localities with rough terrain. In mountainous, criteria djscussed in Chapter 2. regicins, lower VHF channels (2-6) provide Optimum coverage. 2. Vacant channels in the Television Table of Assignments. This official list of channels is completely occupied by full-service stations in all major markets. In mid- Transmission Add-Ons 1982, however, approximately 500 of these channels, mostly UHF frequencies in rural areas, were vacant. 4 The basic transmission co nests described Further, 60 per cent of the available .channels in the thus far link the station to the vie s home. a Table of Assignments have been designated as . Additional components can link the station to other noncommercial stations, remote studios, on-the-scene reporters, and earth satellites. When they are available, vacant channels in the Table of Assignments offer a number of advantages. Satellite receive disk. Most national programming First, the FCC has already approved these channels is distributed via satellite. Broadcast stations and as not causing interference to,other channels in the cabitteadends programming from Table. Second, an LPTV operator can employ 100 the satellitethen immdc it locally4 transmit watts on a VHF channel listed inthe Table. In itrough i cable into homes. Typically, a addition; an LPTV operator can upgrade at a later satlite receive dish is five meters in diameter. point and become a full-service station. Another However, in some instances a three or four group, however, could apply at any timefor is meter dish is acceptable.

14 119 P". t "rablcii Table 5 SO

411` ,Cost t I "`for Transmitteis, Microwave anti SatellfteEta AntennA & Transmission Law 410 Item Approx. Cost Transmitters' Studio microwave transmilter 8111ZI Power Output 4ipprox. Cost* and ieceive dish 11,5 $ 251300' VHF 10 inlets $ 10,000 VHF 100 4010` 20,000 Remote microwave . UHF 100 20,000 transmission facility 16,000 UHF 1000 75,000 . . 3.4 meter Anisrinas satellite dish 12,000 Sand Power daba Approx. Cost 5 meter VHF. 5 $1,000 satellite dish 25,000 VHF 10 5,000 UHF 5 4,000 Source: Cablevisioh* UHF 15 10,000

T11'231SMiSS PI Line:price varies from$2-$9perfoot depending on the power ie outpra of the transmitter. Thus, a 200-ft. otournission lite linking the transmitter and antenna will cost $400.$1,800. Source: CPS and'EMCEE Corp. component (e.g., directional antennas aremore expensive than omni-directional antennas). In addition to these basic compOnents, LPTV transmission system may require a tower and a shack to Microwave crartsmitterilreceivers. Microwave fre- house the transmitter. A 100-foot tower will cost quencies are used to transmit a wide range of approximately $4,500 installed, while a 200-foot tower telecommunicrati6n,s: telephone calls, ntdio, and will cost approximatelp$12,000 installed. Very tall television programming. A microwave link may - towers, e.g., 500-1,000 feet, are'extremely expensive be used to transmit a TV, signal from one and likely to be beyond the financial means of a low-. television station to a distant station where it is power operator. Asimple shack to house the received and broadcast into homes. It may also 4transmitteri may be built for $2,000. linkstudio to the transmitter site on a . The costs of transmission add-ons (i.e., micro- mountitin (this is called an §TI..9or Studio-to- wave send and receive facilities, andsatellite receive Transmitter Link). In addition, a portable micro- dishes) are outlined in Table 5. wave transmitter can be mounted on a van in In ad&tion to these fixed costs, the transmission order to link in on-the-scene reporter with the system must bear yearly costs of electricity and main TV studio. Microwave is a point-to-point maintenance. An LPTV Operator should estimate communication, the transmitter and the receiver $3,000-$10,000 per year for electricity and maintenance -must be able to "see" each other. It is also a of the transmission system. The fistre will vary in private transmission. Homes cannot pick up the relation to power output, am and age of signals until the station feeds them into its equipment and availability of volunteer help to regular transmitter and broadcasts them over the maintain equipment air. Studio Equipment Costs of Transmission Facilities .In order to originate programming on LPTV, a Minimal transmission equipment m studio is required. This can range Mm a' $600 transmitter, transmission antenna, and videocassette playback unit connected to a $2,000 Approximate costs for such equipment are outlin modulator. up to a several-million-dollar studio corn-

Table 4. toll The costs in Table 4 will vary in relation to the For planning purposes, assume that the LPTV manufacturer and additiortscharacteristics of the operator does require a production studio. Table 6

20. Table 6 Table 7 Alternative&nib:*&Remote 1,10TV Equipment and Facilities Cosis I Production Units (Dollar Figures in Thousands) 111 APProx- (Level 1) (%ewl 2) (Level 3) Level Descripdon Cost Item Low Range MO Range Upper Ramie

Studio.1 A small but Complete studio with two color Triestnission cameras, video switcher, character generator Equipment $ 12 - $ 27 . $ 85 and simple editing capability $ 60,000 r Tower 4 12 30 Studio 2 A larger and more versatile studio, with stronger editing capabilities 125,000 Studio' Equipment 60 125 240 Studio 3 A ftill production studio with three high quality color cameras, full editing capalzility and post Remote 'production facilities 240,000 Production Urtt 12 125 125 I Microwave Links ) 16 25 25 Remote A single camera. Professional recording unit , . Unit 1 suitable for news reporting and simple on-the- scene coverage 12,000 Satellite Receive Dish 12 25 ' 25 Remote A complete remote production unit with two Unit 2 cameras and facilities to televise a sporting event Pay TV or other live action 125,000. Encoder 15 55 55

Source: GrertalleCOMMtaliCatiOM Nate In order for either remote production unit to relay programming ' live back to the studio, a$16,000 microwave link now be added to the package.

Sorotv: Warner Amex Adding Up the Costs . A broad range of options means a brim' d range of presents three levels of studios and two levels of costs. A sophisticated LPTV station, fully equipped remote production units. The descriptions inTable 6 could equal the cost of a full-service station (the FCC broadly outline what the studios or productionrits estimates that a conventional full-service station with can do. modest facilities costs $2 million-$3 million, exclusive The packages in Table 6 do nut exhaust the of the land or building). This report assumes that most possibilities for studio cdhfigurations. One could easily .LPTV operator's will build a station well below the cost double or triple these costs for more elaborate studios. , of a full-service station. Furthermore, it is possible to piece together a bare Table 7 outlines costs for each equipment bones studio for $15,000-$25,000. component described in this chapter. One can exceed the range in each instance and reduce the low estimate in a few instances. Pay TV Equipment Costs An LPTV station with a mid-range transmission system ($27,000), no tower cost, a small studio In order to operate as a subscription television ($60,000), and a five-meter satellite dish will cost service, a station requires a $15,000 signal encoder or approximately $112,000 for equipment. This does not scrambler. In addition, an STV box is required in each include costs associated with a building to house the home. Usually, STV decoders, which cost $115, must transmitter and studio or any ongoing costs of be purchased in lots of 100 or more. An STV operator operation (i.e., electricity may sell the box to subscribers orlease it as part of the Four hypothetical examp of community LPTV monthly subscription fee. stations follow, along with an estimate of the equip- If an STV operator wants additional, anti-pirate ment costs for each: security in the system, an additional $40,000 in station equipment is required. This also raises the price of the Example 1. A town with 3,00(fihomes concen- home decoder to approximately $185. trated in a relatively smajl geographic area wishes to

16 21

/A\ .. construct a translator station to pick upa diet it PBS. station and rebioadcast it to the community. No localt origination is plahned. Cost Estimate: $14,000. This includes a small traismission system and a shack to house the - transmitter. ,Example 2. A state college with existhig Production facilities seeks to build an LPTV ration for the college of community and the surrounding townof 15,000 homes. They plan local using exising, facilities, and require a satellite dish to rive programming from a national ETV netwoik. Cost Estimate: $65,000. This includes a mid-range transmission system, five-meter satellite dish and small tower. Example 3. A commnity with 30,000 _homes has two population concentra separated by a mountain. Tay seek to build two stations. One station will aa. provide local origination for the entire community.: The second station will serve merely as a .translator to rebroadcast the signal frog.' the main station. I - h it Cost EitiMate: $202,000. This includes a mid- range transmission system, tower andstudio at one location, and, a small tiansmission system, tower and shack atseiond location. Example 4. A community with 50,00(r homes seeks to build an LPTV station to provide a significant amount of local origination programming, including some live, remote coverage of high school sports. It also intends to provide a pay TV service (a satellite-fed movie channel) during evening hours. Cost Estimate $560,000. This includes an upper -

range transmitter,. moderate-size tower, upper-range ft studio, mid-range remote studio., microwave send and ceive units, five-peter satellite dish, and pay TV encoder.

Ai;

22 -17 Market Analysis, 1.

-44 Part II Noniirofit Applicants Block, Butterfield and Riely and the National Market Federation of Local Cable Programmers conducteda survey of nonprofit appli cants. The survey Overed all nonprofit applications file at the FCC lkfore April Analysis 1981. Some of the data have been regrouped to reflect the change in status of commercial vs. noncommercial applicants within the FCC Riles. In addition, many of the applicants indicate4 a likelihood of changing their mode of operation based upon the fetal FCC rules. ,Of the 5,048' applications surveyed, only 13 per LPTV Appliants Cent were filed by nonprofit grojips. In all, 646 appdicadons werefited by 149-rionproflt grrou1K-This- Who has applied for an LPTV license? What represents an average of 4.3 -applications per applicant t types of p' rogra- mming do applicants siek to provide? Table 8 examines nonprofit applicants as well as Among the over 12,000 applications on file at the the total number of stations sought, brbken down by FCC in mid-1983, most applicants were commercial their intended revenue base: sipported by advertising; groups seekingsio provide an over-the-air pay TV direct payrhertts by home viewers (subscription Tv; channel in large television markets. noncommercial (subscriber donations, mment sup- To date, over 10 pfer cent of urn/ a.. can port, foundation grants, etc.); ancLkot indi red. P have been filed by commercial groups. A h pescepstfigeare also TV marke .24 ly one or Table 8 two c6nnels, hever, are lily to ceased in the Nonprofit LPN Applications top ten markets, while two or three cha'hnels may be Intended Revenue Base licensed in markets ranked 11-100 Consequentlt. I. c most commercial applicants willver be awarded a , # licerise. APplicanta(149)Stations (646) To understand what has happened to LPTV Revenue Mode %of Total %of Total applications, it must be noted that no permanent FCC Noncommercial 58 43 rules existed until Spring 1982. Groups that filed applications before this Aare did so blindly. They did Advertising 18 37 not know if the forthcoming rules would preclude them from owning a station. At that time, it wast STV (Pay TV) 7 7 Lrelatively inexpensive to file an application; and many Not Indicated 16 13 large commercial groups were williffg to accept the small finance, 'risk weighed against the potential gain of Source: Block, Butterfield and Riely; National Federation of Local Cable lingrammers a pay TV.1.tianoel ina large market. Indeed, many commercial groups filed dozens (in some cases more The advertising group in Table 8 represents 18 than one hundred) of applications. Sears Roebuck, per cent of applicants but 37 per cent oftion Federal Express, Scripps-Howard, ABC and NBC, applications, which means that the adv theer supported among others, filed multiple applications for I.PTV groups have applied for more stations per applicant licenses. Joining them were a number of small than other nonprofit groups. commercial groups who filed for the same channel Table 9 reviews sources of-funding, other than space. As a result, approximately 75 per cent of all advertising or pay TV, indicated by nonprofit groups. applicatiAs on file are mutually exclusive. Each of The figures represent the percentages of all applicants these applicants is competing with one, two or perhaps and station applications that intend to seek funding 15 others. from each of the sources listed. The market potential of a commercial LPTV Table 9 reveals that many nonprofit groups that A station in large cities will be covered in Chapters 5 and have applied for a single station are looking toja 7. It is important to distinguish the thicket of NTIA (National Telecommunications and I commercial applicants from the smaller, somewhat less Administratioh, a branch of the U.S. Depa entangled group,of nonpro,fit applicants. Commerce) and private foundations for binding

a 19 \ 2 4 Table 10 Table 9 MN. Nonprofit LFIV Applications Proposed Ownership Selected Sour* of Noncommercial Noncommercial Applications Funding Applicsuits (97) Stations (32i) Ownership 'X of Total % of Toad Applicants (149) Stadons (646) % who intend to % who intend to Community- based 65 52 seek or.4 11.1 seek or expect Binding &lading fcont State 2 38 9 NTIA 20 / fitment 13 4 9 Private Foundations 20 6 - -t--- 20 l Gifts' & Source: Block, Biatelfield QTration ofcal i 0 28 24 Cable Programmers 1 I gramming and distribution methods from sburce to Governments 14 - 22 station; and programming content categories.Tables 11 Source: Block, Butterfiekl and Riely; National Federation of Local and 12 outline these two areas. Cable Programmers The content categories listed in Tables 11 and 12 are not exhaustive. Manygroups intend to broadcast - support, which they hope to supplementwith viewer light entertainment and movies. Further, many intend contributions. Table 9 also indicates chair noncom- to mix their sources of programming, meansof. mercial multi-station applicant!' ere looking to state and distribution, and content categories. A sample schedule local governments for funding. Table 10 shows that the might feature satellite -fed educational programming multi-station group if primarily state-based. j during the day, local origination news in early evening, A further indicator of projected funding tor and an STV movie service in prime time. nonprofit applicants is their ownership classification. Table 1.0 plots the ownership of nonprofit applications Construction and Operating Costs that declared themselves "noncommercial" under the earlier, proposed FCC rules. This represents a The FCC application form in effect when the subgroup within all nonprofit applications. survey was conducted had someconfusing features. For 10 reveals that local government and example, a request for the applicant to estimate universityTee applicants generally seek only one station. ,4 construction and initial operating costs was open to Collectively, Tables 9 and 10 show two broad dusters interpretatibn. Some applicants estimated construction among nonprofit applicants.Cluster A is composed plus three months' operating costs while others primarily of private, nonprofit groups, each of whom provided first-year operating costs. Curiously, the has filed many applications. This cluster intends to estimates are quite similar. Table 13 aggregates the two finance the stations, in large part, through advertising, sets of figures. internal funding and viewer subscription fees. In Multiple-Station Applicants Cluster B are local governments, universities and many community groups that seek one station to be financed Fifteen nonprofit groups applied for ten or more by viewer donations, government university allo- LPTV licenses in the period through April 1981, when cations, and foundation grants. Crly, there are the Partial freeze went into effect Most of the multi.. applicants who fall outside of either grants. For station applicants intend to operate in whole or partis example, the State of Alaska has filed many applications, a network. Furthermore,nearly all of the stations will although their funding base is similar to Cluster B. make use of some satellite-delivered programming. Three of these multi-station applicants are described Programming briefly below. The survey of nonprofit applications dealt with The State Legislatureof Alaska. The State of two general programmingarealsources of pro- Alaska has appropriated several million dollars

20 25 r Table 11 Table 13 Nonprofit Applications Nonprofit Applications Estimated Selected Sources of Programming Construction and Operating Costs and Means of Distribution

Est. Constr. & Oper. Applicants {149) St dons (646) % of Stations Costs (3-12 months) -13ource/Means % who Intend % who intend of Dlstribudon tine muse 60 $ 100,000 or less

Local Origination 71 91 35 100,000-200,000 4 Open: 2C CeSS 18 . 25 5 200,000 or more ta PBS Materials 18 26 Source: Block, Butterfield and Ray; National Federation of iv Satellite Distributed Local cable Programmers Materials 17 49 Source: Block, Butterfield and Riely; National Otierutior Local Cable Progrannners National Christian Network (NCN). The local Table 12 LFTV stations in the Christian Enterprise Network will contribute a small amount $f local origination Nonprofit Applications as well. Funding to construct the network will Program Content come from two radio stations Owned by Christian Enterprises. Operating costs will be Applicants (149) Stations (646) offset by advertising on the LPTV stations and % intending % intlInding viewer contributions. to offer to offer United Auto Workers. The United Auto Workers Religious 32. 54 union has applied for 23 licenses. They planto develop a national network of stations for their Educational 68 79 members. Union funds will finance the construc-

Cultural 62 72 tion and operation of. the stations: The union also intends to involve other cbmmunity groups Children's 13s, 26 in programming, e.g., the League of Women Voters. Like many applicants, the United Auto. Talk/News/Community Workers built flexibility into their applications, so Information 23 52 that they could take advantage of the final FCC Source: Block, Butterfield and Riely; National Federation of Local rules. Cable Programmers

cfor the consPtiction and operation of an The Marketplace instructional, noncommercial network throughout The marketplace for LPTV encompasses cities the state. A central studio in Anchorage will and towns with high, medium, and low population supply the programming to all other stations via densities. Do some markets need LPTV more than satellite. PrograrnmX)oonsists of PBS material othds? What forms of competition exist in these and instructional c m services. When fully markets? And how do they operate? implemented, the network will comprise a few The following analysis has a distinctly commercial hundied stations. focus, since under the new FCC rules, nonprofit Christian Enterprises, Inc. This group has applied groups are free to mix commercial and noncommercial for 14 advertiser-supported, nonprofit stations. It programming on an LPTV station. Later chapters will plans a satellite-fed network of religious pro- cover LPTV stations which operate on a noncommer- gramming, most owhich will originate from the cial basis exclusively.

21 26 U.S. 'IV Marketplace Cable and Satellite SerVices

Approximately 98 per cent of U.S. households In 1983 there were 5,600 cable TV systems in own one or more TV sets. Access toover-the-air the U.S., providing service to approximately 35 per programming, howevei-, varies enormously.Most major cejit of U.S.gOuseholds. The average subscriber paid cities have nine or more TV stations; towns with $18 per month for cable, which inchgled an average 50,000 households may have three or fewer stations. fee of $8 for basic service plus charges for pay services. A.C. Nielsen calculates that 12 per' cent of U.S. Most pay services on cable cost $8-10 per month, per households have access to four TV channels or fewer. service. A typical new subscriber signed up for 1.4 pay The Nielsen figures include stations made available via services in addition to basic service. Overwhelmingly, cab* and/or translators. the first pay service choice has been a movie charm!. The availability of TV channels reflects how If a subscriber signs ap for two pay services, he will PP channels were assigned in the Television Table of likely choose two movie channels or one movie Assignments, as well as the influence of population channel and one sporti channeL'2 density on those who seek to earn a profit from In _of the publicity surrounding very large operating a TV station. Approximately 59 per cent of cable (i.e., 50 or more channels), 1983 market she US. population' inhabits five per cent of the Iced. ' data show that 55. per centof all cable systems. n the Conversely, two per" cent of the population inhabits 48 L.S. have "a 12-channel capacity. areas, the per cent of the land. Since full-serviceTV stations cost percentage of 'small 12-channel cable ms is even so much to build and operate, areaswith a dense higher. This implies that many groups or programmers population attract most of the television business. The who would like to be carried on cable systems' may US: Department of Commerte estimates that a full-, find that thire is no space. This includes LPTV groups service station will have difficulty making a profit in as well as some _national satellite services.By the end of '- markets with under 135,000 households, unless the 1983, over 70satelhte services are expected to be station has some means of support other than operating. The inability to penetrate these cable advertising. markets may lead to some curious alliances between The consumer appetite for television programming LPTV and satellite service& That is, LPTV is a strong is demonstrably keen in all markets, large and small. candidate for local distribution of satellite services in For example, the early growth of cable TV in rural selected markets. Table 14 outlines the satellite services areas and malt towns was basedpredominantly on a by content category. desire for good reception of three to four stations. The financial relationship between a satellite Similarly, the growth of translator stations, from 230 in service and a local distributor (typically, a,cablesysfemr 1960 to over 4,000 in 1982, reflects the desire for varies greatly. In the case of a pity movie channel, the programming beyond the one to two stations previously satellite service may charge 30 to 40 per cent of the

available in those areas. . gross receipts that the local cable operator receivesfor The 1970s brought with them a rapid growth in the channel. Alternatively, a axed fee per subscriber fee-based services. During this periOd, pay TV grew at will be charged (e.g., $3-$4 per month). Nonpar, a rate- of 182 per cent per year,and videocassette services may be offered free to a local distributor or at recorders grew at a rate of 85 per cent per year. Finally, a nominal charge of 10 cents persubscriber, per the strong demand for programming is reflected in the month, These services commonly contain ads. Often, a growth of multiple-set households. In 1970, 35 per percentage of the mil time is left blank; enabling the cent of U.S. homes had two or more TV sets.By local distributor to sell the time to local advertisers. 1975, the figure had grown to 43 per cent and by Finally, satellite services sometimes pay the local cable 1980, 51 per cent of U.S. homes had two or more sets. operator lit order to gain channel space on thelocal, This demand, coupled with the number of system. channels available outside of the major markets and the difficult economics of full - service stations for small markets, suggest that opportunities for LPTV exist in 12 these data ire drawn from a number of sources among them many parts of the U.S. Before judging, however, the Cablevision, Goldman Sachs; and Paul Kagan es, Assoc. For a potential competition must be examined. more extensive analysis of new technologies, see JohnCarey and Mitchell Moss, "A Review of Telecommunications Technologies and Public Broadcasting," Washington, D.C.: Corpciation for Public Broadcasting, 1983. .27 22 Table 14 VHF or UHF channel that transmits a scrambled sigtial Satellite Services to subscribing homes. (1082) 1n mid-1982, there were 27 STV stations operating in the U.S., all in major markets. In addition, 16 stations were authorized but not yet operating.. and Content No. of % of another 30 applications were pending. Subscription Ty Category Channels Total has grown very quickly in large cities where cable'

Movies 16 22 systems have not yet been built. There were 1.5 Music & Gen. Entertainment 15 20 million subscribers in mid-1982, payingan average fee

Public' Affairs/News 8 11 of $19.50 per month for the service., , Ethnic./Foreign language 8 .11 In late 1982 and early 1983, however, STV began Relon ,8 11 to experience a loss in subscriber base due to increases SPor. 7. 9 in the cost of operations and competition from new % Children 3 4 Arts 3 4 cable systems in several large cities. Education 2 4 In June 1982, the FCC released rules governing Shopping 1 RV. The rules open up new markets, permit STV Health 1 1 operators to sell or lease decoders and eliMinate Women 1 1 uirethents for providing unscrambled, free pro- Bush ing Source: Cablevision Generally, STV on a full-service station requires 40,000 to 50,000' subscribers to be profitable..Full- service STV can probablV be profitable in a noncable market with 300,000 homes. 111 smaller markets, full- LPTV operators who negotiate with satellite service STV does not appear feasible. service providers are likely to encounter the full'range of these financial arrangements. As a Yule, a cable gym m requires 30 households Multipoit Distribution Service per mile of trunk line in order to be viable. This means that many rural areas, with fewer than 30 homes Multipoint Distribution Service (MDS) uses ,w. per mile of roadway, are not economically feasible. over-the-air microwave transmission to provide such Cable and LPTV are not likely to compete here. In services as point-to-point voice communication, data more densely populated rural areas, where 'cable and communication and pay TV channels. The discussion LPTV may compete, the cable system is required here will be limited to MDS as a pay TV channel under FCC rules to carry the local station. The An MDS pay movie chnel operates much like cable operator is required only to carry all full-service STV. A special antenna and converter are required to stations in the local area. The LFTV operator seeking receive the service. Monthly fees are typically $15: carriage by a cable system has three options under MDS is cheaper to operate than "SW Therefore, about these circumstances: (1) negotiate with the cable 12,000 subscribers are requited for MDS profitability. operator; (2) attempt to bring pressure from cable Without cable competition, MDS can probably be subscribers on the cable operator, and (3) attempt to viable in a market of 40,000 homes. bring political pressure on the cable operator (e.g., if a new franchise is being'negotiated with the town or if Direct Broadcast Satell ites the old franchise contras[ is up for renewal). LPTV operators and local cable operators will not Direct Broadcast Satellites (DBS) transmit tele- necessarily be adversaries. Many cable operators will vision programming directly from satellite to home. welcome a good local origination LPTV 'channel Each home requires a special receiver, projected to cost Furthermore, a local cable operator is a potential $700 initially, ch-OpFing to $250 over time. The service partner in an LPTV operation. canprovide four to six channels as a pay package. In mid-,1982, nine companies had formal appli- Subscription Television cations before the FCC to provide DBS and another six companies had pending aPpAiaitions. Most of these Subscripticin Telexision (STV) is one form of groups would offer a pay package with movie channels, over-the-air pay TV. Currently, STV uses a full-service sports, cultural programming and teletext. CBS has

23 28 proposed to use DBS to broadcast a new high, provision of pay movie channels. resolution television system. In both rural markets and.small, nonrural Some form of COS will probably be available to markets, an LPTV station may benefit from a the public in 1981; a few groups claim that. they will parniership with local interests, e.g., a local college, reach the market sooner. Since the signal comes from a state agency, publictelevision station, newspaper or satellite, it can reach cities and rural areas alike cable operator. These groups can, in different ways, regardless of population density. Therefore, it would be bring resources that many LPTV operators will licit attractive in rural areas where there are nocable possess and/or cannotafford. systems and few over-the-air stations.To the degree Finally, while the issue of competition is impor- that DES and LPTV become competitive, LPTV has tact, it should- not obscure the primarymarketplace two advantages: a chance to enter somemarkets first question: Does the station or service 'provide pro- and the ability to provide local programming. gramming that people need and want? Public Tel . LPTV Station Models ApprOximately 92 per cent of U.S. homes receive a signal from one or morepublic television stations This chapter reviews the major organizational either over the air or retransmitted through a cable features of an LPTV station; integrates selected features system. Table 15 lists those statesneeding extended and options into four practical station models; presents public television service, i.e., at least 15 pei cent of the potential advantages and disadvantages associated with population doesnot receive a dear signalfrom a public content and sources of programmingprovides an televisidnstation. overview of taff requirements in station operation; and reviews a few existing LPTV stations and local cable- Table 15 based community channels whose organizational struc- tures may offer guidance to theLPTV planner. States With a Need for Extended Public TV Service Major Qrganizational Features

Alaska Missouri Sovth Carolina Stand-Alone/Pitulti-Cbannel/Network Idaho Montana Texas Indiana s - tlevada Vermont Kansas New Mexico West 'Virginia The first noteworthy feature of an LPTV Louisiana Ortigtm - operation is the number of stations itencompassesand the relationship among those stations. There are three Source: PBS general options, which are not completely exclusive. 4, A single, stand-alone station. This station may Implications for LYNN obtain programming from a satellite or a nearby university, but operation and transmission are According to this brief review of marketplace independent of other stations. demand, needs and potential compet on, the major commercial interest in LPTV providing a pay movie A multi- charnel, stand-alone operation. This station channel in large citiesfaces stiff clompetition. By broadcasts two to five channels of programming 1985-86, most major cities will have a large channel from the same site. Under FCC rules, there are cable system as well as pay movie packages offeredby no limits on thenumber of channels an LPTV DBS, MDS apd STV services. operator may seek in one area.A multi-channel In rural.arels, LPTVwillface little competition opeiation may function like a small cable system, until the development of DBS services in the mid- offering a few channels of basic and pay services. 1980s. Some of the small TV markets (100-212)will The cost of multi-channel transmission is far less offer competition to LPTV from cable, MDS and than the cost of transmitting the same.ntanberof possibly full-serviCe STY. In this case, LPTV must take channels separately. For example, a single channel advantage of its lower start-up and operating costs in VHF transmitter costs approximately $12,000, in order to compete effectively. In general,LPTV does while a four to five channel VHF - transmitter not appear to offer strong market opportunitiesfor the costs. approximately$2 5,01)0. 2-9 24 A local, state or national network. A number of A group intending to operatean LPTV network groups propose to form% national network of with satellite transmission will need to lease the 10-100 LPTV stations, with programming fed by facilities of an existing satellite uplink and finda satellite to affiliates. Full-time lease -ofa satellite way to "move" their programming to the uplink transponder (a channel on the satellite) costs facility. several million dollars per year. By leasing the Microwave transmission and reception. Microwave transponder for a few hoursper day, the cost may be reduced to one or two million dollars transmission moves programming from a remote studio to a transmitter, an on-the-scene per year. Costs can be reduced still further if a reporter group uses only off-hours satellite time. In this to a studio or transmitter; and from one station case, each station would record the satellite feed to another. Microwave transmission is line-of- sight. The path from transmitter to receiver during the night for broadcast the next day. must A se'ond optiod is a statewide network, with not be blocked. Thus, intermediate links are sometimes necessary to move the signal around ittdividual stations linked bymicrowave or, in an obstruction.Thi cost of each send/receive some instances, a satellite. Many applicants have point varies between $15,000-$25,000. If a proposed a kcal network or cluster of stations in an area. Generally, the local network is formed special tower is required forfthe microwave dish, costs will be higher. because the population is spreaciovera greater area than can be reached by one station. Thus, Land lines. Video transmissioncan be sent over two or more stations (at different 'sites) are used special land lines, available from AT&T. Thy to reach the larger community. form of transmission is vet* expensive and likely" to be beyond the means of LPTV operators. Program Sources (Transmission) Mail. Many prerecorded programsare sent to stations by regular mail or one of the overnight The transmission methodhow programs 'arrive pdackage delivery services. This form ofprogram for broadcastdeserves careful consideration. There transportation is often called bicycling. ilkare five categories of program transmission. Most stations will employ more than one of these methods. Local origination. Live, in-studio programming These methods are '-ssessed here from a business and and playback of locally recorded materials donot market planning perspective. require special transmission to the station. costs

. are associated with the traffic management of Broadcast retransmission. Existing translator stations .s local prerecorded materials, particularly if the use an aptenna to receive a normal, over-the-air gramming comes from a variety of local sourest. signal from a distant station. The signal is then :amplified and retransmitted. Costs associated The selection of transmission method froth with such reception are generally low (e.g., $100) source to station is closely, related to content and 444. unless- the antenna must be locatedon a tower existing sources for programming. During the planning' other than the station's transmission toweror at stage, transmission costs, availability and operational- a distance from the transmission site. implications must be considered simultaneously with proposed programming content. This includes assessing Satellite receiver. A satellite receive dish enables existing transmission systems in the area, which; with tb&station to receive signals from a satellite. The facility sharing, could realize considerable savings. cost of a satellite receiver will vary'from $12,000- $25,000 depending upon the quality of the signal, location of the station within the 'Ownership ' ° "footprint" or transmission beam of a satellite, Ownership patterns for nonprofit LPTV may and amount of interference in a particulararea. If an LPTV station wishes to pick up signals from differ somewhat tom the cunapt pa em of 'public more than one satellite, costs will be 10 to 15 television station ownership. T le 16 outlines the per cent higher. ownership Pattern for pub *c evision stations. Low -power TV encompasses the owrl&rip Satellite "uplinks" enabling a station to transmit groups for public television plus a number ("small, signali to a satellite are very expensive- and private nonprofit groups, e.g., those who have become beyond the means of individual LPTV stations. involved in community cable channels. in addition,

25 30 Tablele Four Station Models

_ Public Television Station Ownership (1982) The following fouk models are presented as practical examples for review and analysis, not as ideal or recommended ways to organize an LPTV Ownership [leeches Scackpas' operation. The cost estimates, are for equipmentonly. % of Total signal of Gimp . % of Total 1. An existing translator station retransmits the a nearby PBSaffiliate. The translator is owned by a 41 29 Community public authority in the area." Working inconjunction affiliate, University 34 26 with a consortium of local groupsthe PBS the .public tibial% the League of Women' Voters,and State Authority .1i 4g the Kiwanis Club 7-they build,a Level 1 Studio (see Chapter 3). The studio is financed in part by the 10 6 Local Authority same public authoritythat built the translator station Source: CPB and by the local groups who join the LPTV consortium. The new LPTV station continues to LPTV lends itself under current FCCrules to joint retransmit the PBS affiliate and prOvides30 minutes ventures betweennonprofit agencies and commercial of local news each night. While the consortium . . entities, aswell as a COTISOWUM of nonprofit agencies. begins with a small amount of total origination, they

- A private, nonprofit group seeking to operate an have built a capability to grow over time. Cost LPTV station may wish to investigatethe strengths estimate: $60,000. provided by a joint venture with one or moreof the 2. A four-year college with.a mediadepartment ard following locargroups: studio facilities decides to build an LPTV station to PBS affiliate Newspaper serve the local community,providvinaining for their Two- or four-year college Cable operator students and enhance the co educational Civic associations TV repair shop outreach program. They build amoderate-poWer Village or town agencies Radio station transmission system but do not require any new State agencies Commercial TV station studio facilities. In addition, they install a"iatellite receive dish and arrange tobroadcast some tele- A PBS affiliate can,help an.LPTV, operatorby courses provided by anational ETV network. The providing or joining in the production oflocal station is funded entirely by thecollege and rtin by progrartuningend by securing access to PBS programming students with professional supervision. The content available to an LPTV operator. The not otherwise of the station is predominantly educational,with LPTV station and the PBS affiliate alsocould share some local newsand talk shows on community studio facilities. issues. Cost estimate: $57,000. Many PBS stations have appliedfor LPTV licenses. In addition, many publictelevision stations 3. A privatenonprogr[(Loup builds anLPTV station (e.g., KCTS in Seattle, NebraskaETV Network, KSPS with a Level 1 studio and a satellite receivedish. in Sprokane grid WSJK inKnoxville) have developed They seek to provide a mixture ofdiytime a secondchannel for cable and/or'secondary distri- educational programming, national and local news bution channels such as ITFS andLPTV. and entertainment They secure fundingthrough a Local colleges, civic associations and government series of state and foundation grants,along with a agencies may assist with funding,provide volunteer bank loan. staff and build community support.Many of the best The station transmits an educationalsatellite service models for such relationships can befound in during the day, a national satellite news servicefrom community cable channels. A 5-6 p.m., local origination news from 6-7 p.m.,and a In many communities, the localneWsparr is a satellite movie in the evening, with subscribers paying strong potential partnersince it already functions as a $20 per month for the service. In order to operate supplier of local news and information.Moreover, it- 1 can handleadvertising and billing (for an STV operation) for the LPTV operator.A local radio 13 Most translator stations (83 per cent) are owned by station, cable operator andcommercial TV station .can government agency, publicauthority or civic association. Com- provide some of these resources aswell. paratively few are privately owned.

31 , 26 this STV service, the nonprofit group forms a profit - and wants identified in the LPTV needs assessment. makinge subsidiary with a local TV repair service. The The choice of programming also depends on whether TV repair service installs and maintains the home the LPTV operator or consortium has the resources to equipment while the nonprofit'groups handles the provide that type of programming and whether the billing. Cost estimate: $185,000. provision of such content can be supported by existing or anticipated revenues. 4. A local PBS affiliate forms- apartnership with a ,) newspaper to provide an LPTV channel in the same area where the PBS affiliate broadcasts. The LPTV Evaluating&limes channel shares studio f4cilities with the full-service of Programming public television station. With these facilities, they provide a strong local origination service: news, calk Many programming sources have advantages and shows and sports, along with syndicated entertain- disadvantages from a business and market planning ment,programming. Some channel time is leased to perspective. These are reviewed below. A list of some local groups. All of the programming contains grogram suppliers is found in Appendix A. advertising. The station is built with capital from the newspaper and a profit-making subsidiary of the PBS Renting/Leasing Programs affiliate. Cost estimate: $115,000. Many syndicated program packages are available Content and Needs for the independent television station operator. These include old movies and reruns of TV series. Thl costs _ The programming on an LPTV station will tend to be high for a small LPTV market ($75-$100 undoubtedly reflect the interests of those who own per hour). Furthermore, they do not provide strong and operate it. It is important, as well, to assess the audience appeal unless there are no other choices needs, interests and wants of the community to be available. served by the station. The FCC rules do not require Mariducational and dOcumentary materials are ascertainment of community needs by'an LPTV available at 1pwer prices, particularly when leased as operator. Such an assessment, however, is in the part of a pacage. These materials vary from excellent business interest of an LPTV operator as well as, the to mediocre. The LPTV operator-must shop for public interest. Programs with the same concern for quality as in A community nee wants assessment has two shopping for equipment. 1. components: household content needs and institutional PBS has a large body of prerecorded materials heeds. An LPTV operator can gain a reasonable ' and has supplied some of the early, experimental LPTV understanding of what people want most from the stations. Leased programming is made available through station through a simple questionnaire passed out at PBS Video.,475 L'Enfant Plaza S.W., Washington, shopping centers, churches and public parks. The D.C..20024 design, implementation and tabulation of the survey can be done with the help of a local politicalscience Simultireous it ion or sociology professor: The survey can be supplemented of a Distant Statio by informal disctissions with people. The inst*ional needs assessment addresses the In retransmitting a distant station, the problems interests of the io>al library, high school, churches, associated with substituting loCal ads for the distant civic associations and businesses. Where possible, it is station's commercials are not insignificant. These advantageous to conduct this assessment in person. By problems may be negotiated if the distant station is visiting and talking with community groups and transmitting programs that it owns (e.g., local news) business organizations, an LPTV operator can learn slather than a network feed. For this reason, LPTV about their problems and heeds while building support operators may wish to plan the simultaneous retrans- for the station. mission of a distant station for a small part of their A'4c2" completing the household and institutional LPTV program day (e.g., local news from the distant needs assessment, determine what content/programming station). exists in the area, including TV stations, cable, radio Some groups have considered retransmitting the and newspapers. Such a list can help the LPTV planner signal of a PBS affiliate and adding clusters of decide if other media are addressing the same needs commercials at the end of the programs. They have

27 32 noted several public teleirision stations experimenting success of small city newspapers in covering local news with commercials in cluster formats, under special and the relationship of these newspapers to their Congressional authorization. These-commercials are readers merit close examination by an LPTV operator. indeed experimental, and they do not set a precedent for LPTV operators. The contracts for public television A Natiolial IOW Network specify, that they will be used for noncommercial broadcast. Unless, the public television system changes A number of nonprofit groups have applied for its program contracts and formally alteri its policy on multiple LPTV licenses in the hope of forming a commercials, an LPTV operator cannot retransmit a Itational network. The economics of such an operation, PBS affiliate's signal and add commercials. without a strong external funding base, do not a attractive. The costs of satellite leasing and produ on Satellite Services of many hours of original programming are significant and problematic. Moreover, these groups will in some cases sacrifice local origination for national programming, . A number of large ETV networks transmit their programming in .Whole or parts via satellite. These which may have less appeal. include Appalachian Community Service Network; If LPTV represents only one means of local Central Educational Network; Eastern Educational distribcon for a group (i.e., they will also distribute Television Network; Pacific Mountain N rk; and their programming to' cable systems and full-service stations), a national network is more viable. Here, the Southern Educational Comm tion. . audience base may be sufficient to support the high Since policies toward LPTV from organization to cost of program production and satellite distribution. organization, an LPTV group to affiliate with In addition, a national network for selected one of these networks should contact them directly. special interest groups (e.g members of a large-union PBS also transmits its national feed via satellite. or the large Spanish-speaking community in the U.S.) PBS policy does not allow an LPTV operator, who is may be feasible. This form of targeted network requires not a full-service PBS member, to receive and a strong funding base and prilgramming that will appeal.. retransmit the satellite feed directly, unless the Lyry to the audience. operator serves an area that is not currently served by any full-service PBS member station. The LPTV *1) operator in most instances must deal with a nearby Auxiliary Services PBS affiliate. Commercial satellite service itrovidets are likely Several auxiliary services offer ways to meet to vary in their attitudes toward LPTV. Some may audience needs and/or provide revenues for the refuse to deal with LPTV, viewing it as a competitor to station. These include the satellite service's cle' interests. But /many °triers will view it as a comrtSercial opportunity. Indeed, one Text services. There are two forms of text 'service satellite service, SIN, the Spanish Inrinatioruil Network, on television: teletext and open channel text. has set up two translator stations to broadcast its Teletext is a service in which frays or "pages" service in Washington,"D.C and Denvii. Other of text and simple graphics are piggybacked on satellite services, e.g., the Financial News Network and broadcast transmission without interfering with Cable News Network,iare actively ptirsuvg relationships regular programs. Viewers in their homes require with LPTV operators. a special decoEler (estimated to cost$200) to .. separate teletext frames from the broadcast transmission. A simple teletext system costing Local Origination approximately $50,000475,000 enables a station to create and transmit a 100-page teletext service. The value of locally produced programming Teletext can include brief news stories, sports should not be underestimated. It may be the strongest scores, weather, cttnmunity bulletin board infor- asset of LPTV. Evidence from a variety of sources rnition, and advertising. 1 4 supports this argument. For example, local news is a major source of revenue in all TV markets, so much so that local network affiliates have strongly resisted 1$ Severali on teletext are available from Alternative network attempts to take local news time away and Media Center, New York University, 725 Broadway, New York, substitute longer national news programs. Similarly, the New York 10012.

28 33 I

Two national. teletext services were begun in transmitted on a second telephone. line), an ' 1983. Decoders, however, will probably not be LPTV station can create interactive television available qn Nlarge scale until 1985. Therefore, programming with other stations or groups anLI4Voperator with an interest in teletext throughout the country. This form of interactive may wish to plan a 1985 start. forSuch arervice. programming is suitable for contenrthat does not Another form-of text service uses the full require frill-motion video..For example, it would broadcast: channel to transmit alphanumeric and be suitable for a MacNeil-Lehrer format, or an ) graphic ihfonnation. Here, thetext service interactive che show in which local players transmitted instead of regular programming. Some -challenge a master chess player in another city. r stations have explored 'such a service before or In addition, it is possible to send a slow-stan after their normal broadcast day. This form of audio as a- broadcast subchauneL text service does not require any -decoders in the This`withThis` does not disturb the normal broadcast home. The,yiewer watches if like a regular program. In effect, it creates a second channel program. Equipment to create in "open channel" piggybacked on the main channel. Such an text service already exists in many studios. auxiliary channel might be leased to a local Alternatively, an LPTV operator can obtain such school district a capability for approximately $15,000. Asin the Interactive microwave. An LPTV operator with a case of teletext, open chaanettext can be used to _ microwave send/receive dish may be able to use generate advertising revenues, in particular, ' an existing, state microwave network to create classified ads. full-motion interactive video among selected kites Teyconferencing. An LPTV operatof with a throughout the state. While such a network simple studio and satellite receive dish can serve, livould be expensive to build, the LPTV operator as a reception point for one or mere of the can investigate. its availability. Interactive television national video teleconferencing services. In video can be very effective in extending educational teleconferencing, a group in one location com- resources and increasing citizen participation in municates via sound and television pictures to government (e.g., interactive town meetinii). oror more groups located throughout the SCA (Subsidiary Communications Authorization). country. The Public Service Satellite Consortium, SCA is an audio subchannel. Lt Ambles an FM Western Union, among many others, offer video audio transmission to piggyback asecond signal- teleconferencing services. An LPTV operator on-the normal broadcast transmission. SCA may may contact these groups and negotiate a be used for a second voice channel or for data rilationihip as one end point in their network: transmission. It may be possible to generate other revenue The audio portion of a television signal is FM, through a form of local teleconferencing. In this just like radio FM. For this reason, it is possible situation, the LPTV operator would lease the to transmit an SCA signal with the normal studio and channel to a group (e.g., a union) to television transmission without interfering dth meet with members who are scattered throughout the TV picture, or audio. An i.P7V operator may the area. The group at the station would be seen beable to lease an SCA frequency to a third and heard by everyone. PartiCipants in their party for voice or data transmission (e.g., Muzak homes could only call in and be heard." and radio paging service; use SCA). Alternatively, Slow-scan TV and telephone communication. the station's SCA may be used to provide a Transmitting video signals via satellite is expensive. talking books program and news services for the Alternatively, a still video image, called slow-scan visually handicapped. This service requires are television, can be transmitted over a regular SCA radio in each home (cost: under $100)*. telephone line. ;Equipment to send/receive slow- scan TV images dosts under $5,000 per site. Stairand Operating Costs With slow-scan TV and audio (the audio can be Clearly, the costs of staff and operations will vary 15 Under FCC rules,LPTVbtoadcast signals cannot be used)for private communication; however, as long as a teleconference can in relation to the size and complexity of a station, as be viewed by everyone, it would not likely be considered private well as the amount of volunteer help, but it is possible communication. I to develop estimates.

29 34 4 Table 17 Table 18

. Programming Budgets of Monthly Operating Budget Community Cable Channels (19$2) Fayetteville Open Channel

Annual Audio Pelo (Annual 13udget n. $37,380) Cost MIL Per Week Channl for Program $2,000 or Group Operadons Programming Salaries Office Supplies 55 Community Video Center Postage 30 450 San Diego, dA $12,000 N.A. Rent Utilities 80 nit Cable Printing 40 200 Warren; NJ 200,000 9 Insurance Telephone WELM Miscellaneous East.Lansing, M1 80,000 41 Monthly Total Source: Cablevision $osere. Fayetavilie Opri 19t12.

6pera.ting Costs-Transmission Lessons from the Field

It is reasonable to estimate $3,000-$10,000 per The management and organization of existing year for electricity and maintenanceof transmksion LPTV stations and successful community cable equipment at a single channel LPTV station. A ten- provide appropriate lessons for planing.Four watt VHF station is likely to approach thelow end of or systems areparticularly instructive: this estimate, while a 1,000-watt UHF station is likely Berks Community TV. This community channel to approach the high end. on a cable system in Reading,Pennsylvania, has piireered in the development of interactive ,programming for the local community. Use of advanced technology (two-way cable, microwave, Stag and Program Operations and a planned LPTV channel) is supported -by a strong organiiatiOnal framework. Thechannel has Untii many LPTV stations are operating and data developed a diverse mixture of revenue sources are collected about them, it maybe useful to analyze state, federal and foundations, with spaghetti the staff and operating costs of community cable dinner fund raisers and viewer contribigions. In channels. A Cable Television Information Center addition, a strong relationship exists with the (CTIC) survey of several cable-based community City Council and the local cable operator, both channels found that they created a range of 30 to 40 of which inclUde the channel as a line item in hours of programming per week with a paid staff of their budgets. two to five persons plus two to tenvolunteers. Reports Berks Community TV emphasizes local origination from individual channels reveal a range of operating 'and content tied to community interests and . budgets. Table 17 provides a few examples. concerns. Moreover, the staff(a- mixture of paid Table 18 outlines the monthly operating budget and volunteer workers) devotes a great deal of of Fayetteville Open Channel, a community cable time to building relationships with local insti- channel in Fayetteville, Arkansas. Some of the figures tutionshospitals, schools, churches, etc. This have been rounded off and grouped together. organizational work represents a departure from Working in the mid-range of community channel most commercial television operations. That is, operating budgets listed in Tables 17 and 18, it is Berks community TV has worked to become as possible to derive an estimate of the operating budget much a community institution as the fire for a nonprofit LFTV station that produces a moderate department and high schools. amount of local origination per week with a com- bination of paid and volunteer staff. Table 19 Eagle Bend, Minnesota. Channel 45 in Eagle represents two estimates. Bend, Minnesota, is an experimental system with 35 30 Table 19 programs around those issues, including general Estimated Annual g Budget topics (parenting, alcoholism and consumer legal LPTV With'Moderate Local Origination issues) as well as timely ones (the siispnsion of ambulance service in Fayetteville). Open Channel uses a call-in format in many programs and Lower . Upper stretches the limits of low-budget equipment by item NM-Range Mid-itaime training volunteer production crews. The Fay- etteville channel demonstrates that effective Electricity and Equip. management is just asimp&tant fora nonprofit, Maintenance $ 4,000 $ 7,000 f' community service as it is for a large,commercial

Staff and Program Operations 38,000 80,000 business. .

Equipment Amortization Alaska LPTV N Currently, the State of/ & Program Materials 10,000 20,000 Alaska owns andperates a system of more than Totals$ 52,000 $ 107,000 ' 100 low-powerr lions. The syitem began ten years ago under a special authorization fromthe Source: Greystone Communications FCC. The early "mini-stations" were built for $8,000 each to provide television service in rural areas. Prerecorded tapes were bicycled to the stations. Subsequently, satellite receive dishes* low-power and Instructional Television Fixed were installed to receive programming from Service (IT FS) transmission. The channel cover's Satcom IL Currently, programming is a mix of a 20-mile radius in a sparsely populated dairy , entertainment, news, education 'and community farming region. It is an educational channel with health programs. In addition, the network has additional programming about local events. teleconferencing capability and regularly conducts Seventy per cent of the content is local statewide town meetings. origination. Further, the channel uses interactive The Alaska system meets,a critical need; the microwave to produce programming that extends villages have no other source of programming. limited resources, e.g., a German language class. The programming has responded to local needs Non local programming is supplied principally by and wants, i.e., a mixture of entertainment, Children's Television Workshop. education, news, and health programs. The cost Channel 45 is managed by three school districts. per station has been kept low, in tune with the Students perform nearly all production duties. A realistic audience reach of each station, and the broad funding base includes federal, state and system started small and expanded slowly over foundation grants. The strength of the station lies time. in its providing educational services. Limited resources are extended to serve more people. Open Channel, Fayetteville, Arkansas. Open Revenue Options Channel is a community cable channel with a remarkable viewership. Approximately one-third Several revenue options may be available to low- of the cable subscribers in Fayetteville watch power operators. They vary according to the mode of Open Channel for one or more hours per day. operation (e.g,., commercial 'vs. "noncommercial), geo- The channel has many of the same strengths as graphic area and competition in the market. Berks Community TVstrong community or- While it is very easy to present revenue options ganization, training workshops for volunteers and on paper, it is much more difficult to investigate the local fund fairing,. Much of this organizational practicality of a given revenue source. A planner must work is described in their Focus Manual.' weigh the effects of various revenue sources on Open Channel has successfully identified local content and community service; the cost of managing a issues of strong concern to viewers and built station from a particular revenue base; and the time and effort required to build the revenue base. For example, the potential of advertising revenues must be 16 This publication is available from Fayetteville Open channel, weighed against their inevitable impact on program 309 B West Dickson, Fayetteville, Arkansas 72701. content, increased costs of managing the station, and

3 31 36 the considerable effort required to build a strong base The figures in.Table 20 vary in relation to type of of advertisers. public broadcast station. In addition, the petce The following presentation is directed primarily will shift somewhat in the period 1984-85. fro toward nonnrofit_grou-ps. A full range of commercial is important to note a fundamental pattern: Noncom- and noncommercial revenue opportunities are treated mercial public broadcasting relies heavily on tax-based since, under the FCC rules, a nonprofit group can support. Under most circumstances, a noncommercial engage in the same commercial activities as profit- LPTV station will also require a strong level of support making groups. It must be noted, however, that the from tax-based funds. FCC rules do not supersede federal, state and local laws or regulations regarding the commercial activities of a nonprofit group. In particular, existing tax laws may limit the commercial activities- of a nonprofit Federal Funding group. These laws vary widely and require investigation _by any nonprofit group considering commercial appli The total amount of federally based money cations for an LPTV station. Similarly, a nonprofit available to public broadcasting will shrink during the group operating a commercial LFTV station must next several years. Under the Public Broadcasting Act, consider how those activities might affect revenue low-power licensees are not eligible for Community opportunities from foundations and many feclersit, state Sektice Grants, the only program CPB maintains to and local agencies whose policies may restrict grants to provide annual operating support for pu broad- noncommercial groups only. casting stations. Under 47 U.S.C. §397(6), a is broadcast station is defined as a television or radio station which "under the rules and regulations ofthe Noncommercial Revenue Commission [FCC]. in effect on the effective date of Options: A Public Television this paragraph, is eligible to be licensed by the Commission as a noncommercial educational Tadio or Model television broadcast station..." rt It is useful to begin analysis of noncommercial Low-power licensees fail to meet this statutory revenue options by examininghow the current public for two reasons: (1) The FCC has refused to broadcasting system is financed. Table 20. summarizes issue noncommercial kenses in the low-power service; all sources of funding for all public broadcast statibns. and (2) even if the FCC ultimately adopts regulations providing for noncommercial LPTV licenses, the statute only provides for CSG funding for stations Table '20 eligible to be licensed "under the rules Ind regulations of the Commission in effect on the effective date" of Sources of Funding for the pa*ragraph defining public broadcast stations. That Public Broadcasting (1982) effective date was November 2, 1978. In addition to the statutory limitations, CPB faces 11.1....w reduced amt.. opriations of funds through 1986. With Ise 56Cof Total this'reduceslevel of funds, CPB has been forced to Nonfederal T;x-Based cut back its support of existing publit broadcasting (e.g., stare & local governments services: Sufficient funds do not exist for CPB to including state colleges 35.5 Public Tax-Based support ne",' services, such as low-power television. Although its resources are severely limited, CPB Federal 23.6,(Support.59.196 will continue to provide technica advice to the extent 'WOOS NO NO OO 119 possible to low-power television tions that will Viewer Subscriptions 16.7 Private provide noncommercial services., Support .40.9% The Nationar Tefecommuni Lions andInforma- Auctions, Private College brand; of the U.S. Sown and Other .10.9 tion Administration (NTIA), a Department of Commerce, administers the Public Corporate Underwriting 10.7 Telecommunications Facilities Program that provides money for equipment The FacilitiesProgram is Foundations 2.6 explicitly mandated to extend public telecommunica- Soun:c: CPB.Prelimmary Data tions services to. unserved areas. Indeed, many

32 37 itanslator stations have received funding through the These funding patterns suggest three ways in Facilities Program.. which an LPTV station may be able to obtain state If LPTV stations do qualify for NT1A Facilities funding: Program funding, they should be aware of statutory and regulatory restrictions on the use of equipment The state or state-owned college holds the LPTV funded under this program. In particular, they restrict license.. commercial uses of this equipment. The LPTV' station joins the state ETV network Most of the funding available through the US. and/or provides educational services in direct Department of Education is allocated through support of the state's educational system. Division of Educational Technology (DET) eir funding programs include Basic Skills, Edu onal The LPTV station lobbies for unrestricted funds* Television and Radio Programming an Eme earmarked for public broadcasting. School Aid Act Each of these programs iaconce with improving the quality and availability of education. Generally, local goVernment funding for public Grants are made on the basis of proposals to create a broadcasting is allocated in two ways: A local authority series of programs or provide a particular service. An owns the station and receives funds to provide LPTV group involved in educational programming educational services, and/or tax district funds are should contact [JET directly anci follow Request for allocatedto a station. Proposal-- announcementsthat appear in Commerce A number of local school districts own public Business Daily. television stations. In addition to CPB Community Service Grants and other nonlocal funding, such An LPTV operator may investigate the funding . -programs of the National Endowment for the Arts stations receive county, city or township funding to (NEA) and the National Endowment for the Hu- provide instrtictional programming for the district's manities (NEH), which fund media progrims and educational needs. special projects. It is best to contact NEA and NEH In 21 ttates, local tax districtscts are authorized to directly for information on guidelines and applications. provide funding for public broadcasting. These tax A number of other federally funded agencies sponsor districts work much like streetlight or sewer districts. programs that may be relevant to LPTV, although They use general obligation or revenue bonds, property federal support of these programs fluctuates greatly. and other forms of-direct taxes to support public Information oh Tunding opportunities is available from broadcasting services. Approximately 30 per cent of trade publications on educational broadcasting and existing translator stations are funded throtigh tax from CPB and PBS. districts. This suggests two principal ways in which an LPTV station might receive local government funding: State and Local Tax-Based Funding A local authority owns or shares the license for State and local tax-based fundingodinstitutes the the IPTV station. largest source of money for public broadcasting. State An LPTV station qualifies for tax district funding is allocated in several ways. First, many public funding. broadcast stations are state - owned. The majority of these stations operate within state educational television In addition to general state and local funding networks, which are part of the state's education sources, many states have specific programs in agriculture, system. States also provide significant funding for many health and social services that may apply to an LPTV university-owned public broadcast stations, particularly station. For example, six states (Delaware, Florida, thuse owned by state universities and college's. Indiana, Michigan, Missouri and Pennsylvania) have For state and university licensees, the basis for Neighborhood Assistance Programs or Community state support is direct or indirect state ownership of the Improvement Programs offering substantial tax credits station, and/or provision of state - related educational to companies that support nonprofit organizations, serviceeby the station. States also provide funds to especially if the nonprofit agency provides service to some community licensees that provide state educa- low income and minority groups. tional services. County or state legislators can be contacted for In addition, states may provide unrestricted funds information on potential funding from state and local public broadcast stations (e.g., Florida, Pennsylvania governments. Public interest groups also help nonprofit an w York). organizations identify sources of government funding.

33 38 Corporate Funding One useful technique in fund raising is to offer a gift or premium for contributions exceeding a fixed Corporate funding provides moderate revenue subscription rate. In the case of LPTV, this could be an for public.broadcasting and is directed primarily toward outdoor antenna which is often needed for clear large co unity stations in the form of program reception of an LkTV signal. underwrit-ing. FArthermore, corporations tend' to sup- Many stations also supplement direct viewer port major projects such as NOVA and Masterpiece contributions with auctions, picnics and other activities Theatre. to generate revenues. While experience will provide An LPTV group may therefore wish to adopt the best indication of which activities to offer, a good corporate funding strategies akin.to those of other starting point is to talk with other nonprofit groups in small nonprofit groups (e.g., a community center or a the area about the activities that work well for them. volunteer tyre department) rather than those of large public television stations. Commercial Revenue Options .

Foundation Funding The following commercial revenue options for LPTV are treated without consideration of policy issues Foundation grants are another source of moderate or tax status implications fornonprofit groups. Before revenuefort public broadcasting. considering commercial revenue options, nonprofit Low-power stations may be able to obtain,some LPTV stations shOuld examine the potential tax foundation funding. In general, foundations have consequen.ces. shown Considerable interest in providing seed monies for promising new services. It is important to identify Adverdsing foundations whose objectives' are compatible with the programming and services that an LPTV group intends There are two principal Models for advertising: to provide. A useful'resource forthis is the Foundation national advertising on fuft-service television and local Directory, found in many libraries, which list:Loll advertising through area media services, such as a local foundations and the type of work they support. Before cable channel or a newspaper. applying to foundations for funding, obtain information The national model is appropriate for LPTV about their current funding programs, applications groups that intend to operate as a national network. procedures and deadlines for Submitting proposals. The local model lends itself better to an independent station with local advertising. The following examination Viewer tiOntributions of both models is from the revenue perspective of an individual station, whether it operates as part of a Viewer contributions are a moderate but growing source of revenues forpublic broadcasting. On the network or independently. The national model, through a network, is average, 10-12 per cent of those whoregularly view public broadcasting contribute money to the station. efficient; a small sales group can represent many stations. In addition, advertisers will often pay a Typical viewer contributions range from $25-$135 premium to reach a highpercentage of their target annually. The percentage of viewers who contribute audience, something an LPTV network can "deliver" and the amount each contributes has grown in the past through specialized programming. An LPTV network two years. can offer more attractive packages'of commercial time Most LPTV groups, particularly those in under- and flexible scheduling. Longer and experimental served television areas, can expect moderate revenues commercials also may be appropriate for LPTV. from viewer contributions. A reasonable goal i'i the National advertising on LPTV, hoWever, must first two years of operation is $20-$25 per year from meet several advertising industry requirements.Each five to ten per cent of households that regularly view station must document that a spot has been aired.17 the station. It may be possible to exceed these goals, particularly after three to five years of operation. Traffic management and monitoring of spots can Viewer fund raising takes a good deal of time and effort, and successful fund raising strategies vary from station to station. An LPTV group may have to learn by trial and error which methods are best suited to its 17 See Confirmation Contracts For spot Television and station. Radio. American Association of Advertising Agencies, 1970. 39 34 absorb 15 to 25 per cet of sales revenues (the higher The average market size for each of the percentage applies to saller stations's). Furthermore, stations is 25,000 households. (Only rural national advertisers reqire a numerical and demogra- areas .and smallmarkets are likely to receive phic breakdown of the don's audience. Survey licenses ofi 1983-84.) Half of these markets organizations, such A.C.ielsen and Arbjtron, provide have cable where 10 per cent of households this data to some smallarkets for $15,000 a year. In watch the LPTV station at any given time, many rural markets, the to are not gathered, and a `while 20per cent are watching in noncable station must undertakeks chvn research. markets. This yields an average viewership An LPTV network will likely need a firm to of 15 per cent of households for the handle national spot sales. Typically, such firms charge network as a whole.' a 12 per cent commission on sales revenues.In With 15 per cent viewership in a 25,000 addition, the advertising agency, which purchases the househcii market and a rate of $6. per time for their clients, receives a 15 per cent thousan ,the price for a 30-second spot commission on sales. on each station wouldbe $22.50. A national LPTV network faces strong competition from existing broadcast networks, cable networks, At $22.50 per spot and 32 spots per and magazines for national advertising dollars. Further, evening, the potential gross revenues for advertisers and agencies have been very conservative in the ten-station network would beti moving into new technologies. In 1981, over 90 per $2,628,000 per year. cable services failed cent of advertising-based, national In the h e firms year, it is estimated that the would to show a profit. A national LPTV network network could sell approximately 30 per require a large marketing budget to sell asignificant cent of this commercial time, yielding amount of advertising. gross revenues of$788,400. ,These elements are compiled below in a revenue scenario for a ten-station, nonprofit LPTVnetwork From these gross revenues, the sales with advertising. representative's commission and the ad agency commissions mustbe subtracted, Revenue Scenario # 1 as well as the costs associatedwith spot traffic management and logging. This Advertising Revenues for Ten-Station yields $443,475. 1LPTV Network Other costs include amortization of spot A ten-station network of LPTV stations insertion equipment, research to de- each market, provides educational programming during monstate audience reach in the day with no advertising. During the and a promotion campaign to sell evening4-11 p.m., the network carries a national advertising time. With minimal general entertainment channel from one of expenditures in each of these areas, the the existing satellite services. The LPTV net profit for the network would be network does not pay for the programming $236,333. since it contains commercials. As part of Estimated profit per station in the first the contract with the satellite service, the year would be $23,633. LPTV network is allowed to insert four minutes of commercials per hour in the The LPTV network scenario could yield more programming. This advertising time is sold profits, particularly in years two to five of the service. It by a national sales firm which represents is also posiji3le, howeveit, to construct a scenario in the LPTV network. The network charges which the service loses money from its advertising advertisers a premium price of $6 per efforts in tbe first five years of operation. For example, thousand households watching its stations. if the LPTV network created its own progtanitning and lbw leased satellite time in order to reach the network affiliates, it would incur significant costs beyond those described in Scenario # 1. While the network would be able to sell more commercial time, it would be Is See Television Financial Report. National Association of Broadcasters, 1981. difficult for revenues to match costa 40 35 Local Cable Model For Advertising station. The station offers a variety of Revenues package plans for spot time. These plans average $25 per 30-second play. A second way to approach LPTV advertising is to With 32 spots per evening at a rate of adapt an economic model from local cable channels $25 per play, the potential gross revenue that advertise. A helpful example is TO Cable in per year would be $292,000. Oranrtown, New York. Taconsists of two nearby cable systems with a total subscriber base of 18,.500 If 30 per cent of this commercial time

TCI employs 1.5 sales people and a half-time . were sold in year one, the gross revenue technician who handles the insertion equipment., Their would be 187,600. advertisers are predominantly load, e.g., local car From this gross figure, the salaries and dealers, ett. TCI does not Produce commercials,,'which overhead associated with salespersons are handled by another local group charging $450 for a and technician must be subtracted. simple, 30-second spot Costs associated with amortization of TCI inserts local spoti in,satellite-delivereci - insertion equipment and some promoticin programs, e.g., Errtertainment Sports Prcigramming will.reduce the profits. . Network and Cable News Network. They offer three packages to local advertisers. The advertiser's 30- Estimated profit for the.station in the second spot will be played 36 times during one month _ first year would be $33,386. for $900; 20 times during one month for $600; and 10 times during one month Tor $350. These packages are sold-in three-month contracts. Thus, a car dealer who It is possible to calculate way§ in which net purchased the second package would have the spot revenues for local advertising would be greater or played 60 times.over a three month period, for $1,800.*- smaller. It appiats that a local advertising approach is Using this approach, TCI generates $160,000 per year .less likely to lose money, since costs can be controlled_ in gross advertising. revenues. more readily. Furthermore, if the local station produces Among the advantages of a local advertising commercials, and sells spot tirnegadditional revenues approach are reduced need for audience research, and might_ be realized by leasing studio time. formal documentation of spots being aired. Scenario #2 adapts this model to an independent LPTV operator. Newspaper Modell Revenue Scenario** 2 A third advertising revenue estimate may be Advertising Revenues for constructed by adapting a newspaper model to LPTV Independent LFIV In Scenario #3, the LPTV operator forms a partnership Station with the local newspaper. All advertising sales would be handled by the newspaper and would Consist of An independent LPTV station provides simple, character-generated text ads. The newspaper educational programming during the day could manage the text ads as a supplement to its with no advertising. During the evening, 7- normal print ad business by using its sales force and 11 p.m., the station carries a satellite news billing department. channel. In accordance with &kir contract, the local LPTV station can insert four minutes of commercials per hour. This advertising time'is sold locally by 1.5 sales Revenue Scenario3 people. In addition, a part-time technician inserts commercials. Advertising Revenues LFIV Station The station reaches 25,000 households in a & Newspaper Joint Venture rural community with no cable. There is one competitive over-the-air station in the An independent LPTV station provides same market. During prime time, 20 per educational programming during the day cent of households watch the LPTV with no advertising. During the evening, 41 36 1 7-11 p.m., the station carries a satellite fewer than 300,000 households and even less likely it service. The station can-insert four minutes there is competition from a cable system. The high of commercials per hour. These consist costs associated with a sales- force, promotion, and full- entirely of text ads created and sold by the service broadcasting are among the reasons why STV local newspaper. In liddition, the station requires larger markets for profitability. broadcasts a'special half-hour classified ad Multipoint Distribution Service (MDS) is a less show (co en ly of classified ads) expensive way to operate an over-the-air channel. But

froni 8-8:30 a.m. tion reaches MDS market studies suggest that a minimum of 40,000 . 25,000households in a rural, noncabk households in a noncable market is required for MDS market, profitability. The newspaper offers a variety of packages A pay LPTV channel could be ctofitable in to advertisers. These average $6pet"play" markets with fewer than 40,000 households, if sales, - bf-the text ad. Each text ad is displayed for and promotion costs were kept at moderate levels. In 20 seconds. these small markets, the presence or absence of cable is likely to be citicial to the viability of an LPTV pay The station can play 138 text ads per channel. In addition, the availability of Direct Broadcast 7 day. At $6 per slay, this could yield' a Satellite (DBS) programming is another competitive potential gross revenue of $302,220 per factor. If DBS is available to a rural market before the year., LPTV station is built, it will be difficult for the low- ' Since the newspaper has a customer power pay *ulna to compete. base lend considerable experience in Revenue Scenario #4 outlines a revenue option selling classified ad space, it is estimated for an LPTVcchannel in a market with 30,000. that it might sell 40 per cent of the households. The scenario examines a market with and advertising space in the first year. This Without cable but does not consider potential compe- would yield $120, gross revenues in tition from DBS. The analysis focuses on year three year one. . because it is assumed that the service would lose money in years one and two, when the customer base From these estimated revenues, the cost would be smaller. of two typists (to create the text This analysis does not deal wigs pay LPTV in commercials) and a part-time technician major markets. Although the bulk of LPTV applicants to manage insertion equipment) must seek to offera pay LPTV channel in'kite markets, it is be subtracted. In addition, the amortized unclear why. Pay LPIV will not be able to enter large Costs of the character generator equip- markets until 1985-86, at which time the consumer ment and insertion facilities at the demand will have been wired by large capacity cable station must be dedvcted. systemsjulpinver STV, MDS, and direct broadcast Estimated profit in the first year would be satellites. See chapters four and five of this report $56,531. This revenue would be shared by ilk newspaper and LPTV"station.

In this scenario, an LPTV station might realize smaller revenues than from the local cable model. At the.same time, there is less risk for the LPTV operator Revenue Scenario 04 and no requirement to sell advertising space. For the newspaper, it also represents a small revenue potential Pay LP IV in a 30,000 Household The newspaper can use its existing sales and billing Market for Year Three Revenues icrsonnel, while other costs may be controlled, in relation to sales volume. An LPTV station offers educational programming during the day to all homes in a market During the evening, the station Pay TV. scrambles its signal and offers a pay movie channel Subscribers are charged $20 per Analyses of over-the-air pay TV (STV) suggest month for the service. This includes the that it is not likely to be profitable in markets with service and lease of the decoder equipment.

37 42 Fixed Monthly Costs Per Subscriber, of 404100 households, it is reasonable to charge- Program Cost (40% of $3,500 per month plus 65 cents per subscriber to subscription fee). $8.00 the pay service. If the pay TV service attracted Decoder lease and repair 6,000 ruhicribers, this would yield $7,400 per contract 5.00 month to the LPTV licensee. Program Guide .75 Shared channel leasing. An LPTV group which $13.75 seeks to use the channel in. the evening, e.g., to Net Revenues per subscriller, per month $6.25 bring a distant PTV station's signal into the community, could offer the channel in the daytime to a consortium of public users, e.g., the Cable amble Market Parket school district, a private college and a hospital. In this form of leasing, the station would attempt to Est. # Subs 1,500 6,000 meet its yearly operating costs through the leasing charge. For example, a station might dung Est. Revenues Per $15,000 per year,to each member of a four party Month $ 9,374 $ 37,500 public consortium. The consortium would then Monthly Station Costs allocate daytime use of the channel, among its members. Advertising & t Promotion 3,000 .3,000 Leased Facilities and AwdlifuyServkits Saks & Tiehnical Personnel 8,000 '12,000 Leased production facilities. An LPTV stationlwith a studio may be able to lease the studio STV Equipment, production facilities. Pricing can an hourly basis amortized over would likely nm $50-$250 per hour,' depending 7 years 1,000 f,000 upon the studio's capabilities. In some instances, Overhead 1,500 1,500 the ovetthead and management oasts of hourly leasing ex teeds potential revenues. Under these TotiOtatiOn circumstances, an LFTV operator may Consider a Coffer Month 13,500 17,500 *long-term Studio sharing arrangement with an Eat. Net Prof appropriate group. For example, some LFTV Per Month $ -4,125 $ 20,000 operators could lease their studio three to four hours per day to.a local community college for Sawa c Greystone Communications television productinn classes and preparation of cOutse.related audia/visuaLmaterials. The station Leased Channel Space sfi would charge a yearly fee and attempt to recover a percentage of operating costs. Channel space leasing is reviewed below, along with some general pricing guidelines and where Video teleconferencing drop. LPTV stations with a appropriate, revenue estimates. satellite receive dish may be able to realize a small amount of revenue by serving as a local Leased access for prograrruning. A station may "drop" fora national .yideo teleconferencing lease channel time to a group that seeks to service. Typically, a local reception point for such present program materials. Where this is made a conference charges $300-$400 per hour for use available, e,g., on some cable systems, charges are of the studio and satellite receive dish. 40" usually nominal in order to encourage nonprofit public service uses of the channel. A station SCA lease. In a small market, the leasing charge might charge $25-$50 per half hour for liased for an SCA channel is approximately $300 per access. month. A radio paging service or Muzak are the most likely commercial groups to lease an SCA Leased channel for a third-party pay TV operator. channel. An LPTV group could lease the entire channel during the evening to a pay TV operator. A basis VI31 lease. During 1984 -85, some national groups for pricing can be adapted from MDS. In a town and local newspapers may seek to lease the

38 43 vertical blanking interval.(VBI) oflindependent Conclusion stations throughout the country in order to provide a teletext service. While there is no . This assessment of low-power television suggests precedent for leasing charges, it is reasonable to that the strongest opportunities lie in those areas for assume that it would have the same value as an which LPTV ,was intended: underserved TV markets. SCA subchannel, i.e., $300 per month. Furthermore, the strongest long-term programming asset of LPTV in rural areas and small towns is local Local teleconferencing. Under certain conditions, origination: local news, provision of community an LPTV operator may be able to offer local services (e.g., education, town meetings and health teleconferencing services. For example, if two services) and coverage of local events (e.g., high school LPTV stations (20 miles apart) are linked by sports). In the short term, STV in rural areas also may microwave, they may be able to lease their have strong appeal. By the mid 1980s, however, direct studios to a nearby corporation (with plants or broadcast satellites will compete for rural pay TV offices in each of the two, markets) for teleconfer- services. encing meetings. While video teleconferences are Low-power television opportunities appear to be commonly seen as linking sites thousands of g weaker in major markets. By 1985-86 there will be a miles apart, some of the most successful great deal of competition from large-channel cable applications of video teleconferencing involve a 11, systems as well as MDS, STV, and DBS. link of 15-30Gmiles. For example, the Department Low-power commercial stations mayifind that they are of Energy links its Washington office with a entering a saturated market. suburban office in Maryland, 25 miles away. The Noncommercial LPTV in major markets will be Department of Energy pays $5,000 per month for challenged to identify groups whose needs are not the 'microwave link, exclusive of room costs at being served by cable channels. It may be noted first each end. . that many of the "target" groups discussed in. relation This form of teleconferencing also may be to major" market LPTV, e.g., women, blacks, Hispania, broadcast from each of the stations to homes and senior citizens, also have been targeted by -cable or offices in the area.Under this condition, thee service providers. Cable services, however, will have a issue of private communication may come into much smaller penetration among low-income groups. play. The FCC does not permit the use of Thus, LPTV in major markets may be suited to a target bmadcast services (point-to-point tnicrowave does group that is identified by its economic circumstances, not come under broadcast rules) for private. rather than race, language, sex or age. Among the many ,----""communication. Thus,a broadcast teleconference needs of the poor in the middle to late 1980s will be that is scrambled and received only be employees information that is available to others who can afford of a corporation would not likely be permitted. all of the emerging communication technologies. LPTV But, if the teleconference involved a corporate . maybe the only "new technology" that the poor can employee training program on stress relief, typing, afford. or microcompiatsand all homes in the area It appears that LPTV in rural areas and small could view itthe issue of private communication towns will require a secure financial base to support a most likely would not arise. large share of operational costs. In most instances, this base will come from tax dollars at a federal, state or Other Revenue Opportunities 'local level. Beyond the financial base, LPTV stations must develop a variety of additional funding sources, An LPTV station in a small market may discovv. e.g., viewer subscriptions, auctions, public institution , abroad range of revenue opportunities that cannot be contributions, and underwriting from local companies. anticipated in this report. Indeed, a keen entrepreneurial" Nonprofit groups mixing commercial and non- may be the strongest asset of anLPTV operator' commercial activities must weigh carefully the potential n LPTV pup is likely to 15ridentified by revenues from commercial activities. The analysis in ers 4generally skilled in new technologies. In. this report has suggested that supplementary commercial markets, thi3 may suggest opportunities for activities can provide only Moderate revenues. An .STV spinoff 'businesses suck as a video store, a microcomputer operation during the evening appears to be the most softkare dealer or a telephone store. Such a profitmaking promising of these alternatives, But, the presence of subsidiary can help support noncommercial activities cable in a market and the unMtain timing of DBS cast the station. a cloud over pay LPTV in rural; markets. Other part-

39 4 4 A time commercial activities (e.g., advertising) can thiplementation provide some revenues, but it does not seem likely that they will be able to support the station entirely. In addition to the general points above, a few specific suggestions may be helpful to a group that is GettingSmarted planning to operate a station.'9 The construction of a station and start of Each market has specific charactelistics that will operations nearly always takes longer than present unique problems and opportunities. Moreover, expected. A rule of thumb is to add one third to LPTV.-is a newly emerging service whose shape will be whatever reasonable timetable has been estimated. forged over time by those who operate stations and It is also important to anticipate delays that may their audiences. For these reasons, an early market arise because of permits, environmental impact assessment, such as this report, can and should serve studies and other outside apiIrovals that are only as an aid in getting started and reducing. some of required. the uncertainties surrounding LPTV. With this in mind, a few general points may be Offered. to a In purchasing equipment, coasidehow it will be nonprofit group planning to build an LPTV station: repaired. If a piece of equipment must be shipped to another city fo repair, what back-up The investigaiion of potential funding sources equipment can be used to p the station will 'require a good deal of time and effort functioning normally/ The intended station programming and mode of There is safety and value: in starting Small and operation must be viable In terms of building programming over time. Indeed, some audience needs and wants, anticipated groups have taken several years to implement a- revenues, geographic area, and competitioh... large scale service fully. All of these elements must be considered. Promotion is an important element fri launching In many instances, a local partnership with a new services. Fun:herniate, this need will continue commercial group or a consortium of nonprofit throughout the life of the station Some groups agencies will make good sense for an LPTV prepare an initial promotiotutl_effort, then operation. It will be difficult for any one group periodically reintroduce smaller efforts (e.g., everyI.. to gather all the resources necessary for a six months). successful LPTV station. Unanticipated problems and opportunities require There is danger in looking to commercial flexibility in management style. It is unlikely that 4r television for programming models and methods after three years an LP.TV station will operate of operation;A nonprofit LPTV.statlon in a precisely as the planners anticipated. This is a small market may learn more by studying ,problem only if management takes a rigid successful community cable channels and other position toward changing circumstances. nonprofit community services (e.g., a volunteer fire department) for raising money, serving citizen A Parting/Word needs and organizirto staff There are sound business reasons why more full- Thii aliessment of low-power television has service stations have not entered small markets deliberately taken a tough stance since a group seeking revenues cannot support operatiOn costs. An to develop a low-power station must face a series of LPTV group must continuously monitor costs crucial financial, legal, marketplace and technical issues. and keep them in line with those revenues that None of these elements can be overlooked. At the can be generated. same time, low-power television offers genuine opportunities.for many nonprofit groups to become involved Some good trade literature about LPTV is in television and to serve their communities. Further- available, but it often contains hyperbole. A more, LPTV represents an exciting challenge for those reader should apply critical jcidgment to all with strong entrepreneurial spirit and community assessments of LPTV. commitment to give shape and direction to low-power Assessing commytitty needs and organizing local televisiOn in the United States. support are major, time consuming tasks. But they are just as vial' as quality of programming in 19 Martin Elton and John Carey, Implementing Interactive Telecom - building the station into a community institution. mwnications Se7ViCei. New York: Alternate Media Center 1981. 45 40 Appendix

46, Appendix ,Eitel Electronics P.O. Box 830 Prescott, Ariz. 86302 (602) 445-0691

Lance Industries - and Information 13001 Bradley Avenue P.O. Box 4156 Resources Sylmar, Calif. 91342 Rodelco Electronics Corporation General information 356-4 Comac Road e". Deer Park, N.Y. 11729 (516) 643-5110 Consumer Assistance Office .a Federal Communications Commission Satcom 1919 M Street N.W. 1756C junction Avenue Washington, D.C. 20554 San Jose, Calif. 95112 (202) 632-7000 (408) 286-6000 Salla Electronics Corporation For Copies of FCC Documents P.O. Box 4580 Medford, Ore. 97501 (503) 779.6500 Downtown Copy Center SITCO Antennas 114-21st Street N.W. "10330 N.E Marx Street Washington, D.C. 20036 P.O. Box 20456 (202) 452-1422. Portland, Ore. 97220 (503) 253-2000 Low-Power Television Television Technology CorporatiOn 5970 W. 60th Avenue EquiPment MangfacturenC Arvada, Coro. 80003 (303) 423-1652 Transmitters and Transmitdng Antennas Thomson-CSF Broadcast, Inc. 37 Brownhouse Road Acmdyne Industries, Inc. Stamford, Conn. 06902 516 Township Line Road . (203) 327-7700 Blue Bell, Pa. 19422 Townsend Associates Bogner Broadcast Equipment Corporation 01 Railroad Avenue.. 79 Mainline Drive Westbury, N.Y. 11590 Westfield, Mass. 01085 (516) 997-7800 (413) 562.5055 Versa-Count, Inc. EMCEE Broadcast Products, Inc. P.O. Box 68 553 Lively Boul rd White Haven, Pa.-18661 Elk Grove. Village, IIE 60007 (312) 593-0208 (717)443-9575 Low-Pcrvver Television Trade Groups

'This is a pariia-1 listing of transmitter, antenna and satellite Arneridat Community Television. Association receiving equipment manufacturers. A more complete listing of 1 Court Square vendors of this and related low -power equipment (stdrios, STV Montgomery, /Ala. 36111 decoders, etc.) can be obtained by consulting trade publications such as the Services Volume of Television Factbook (1836 (205) 265-4444 Jefferson Place N.W., Washington, D.C. 20036). A recently formed' PTV trade association.

47 Independent Community TelevatimbAlliance Downtown Community Television 7432 E Diamond 87 Layfayette Street Scottsdale, Ariz. 85257 New York, N.Y. 10013 (602) 945-6746 Cultural and documentary programming. ICTV is a membership organization aimed primarily Great Plains National TV Library at representing and sharing resources among smailtS. P.O. Box 80669 1, independent LPTV entrepreneurs. Lincoln, Neb. 68S01 National Association ofAdcasters Educational programming. 1.771 N Street N.W. Independent Cinema Artists and Producers Washington, D.C. 20036 625 Broadway NAB is the membership ization representing New York, N.Y. 10012 U.S. radio and television casters. . Broad range of independently produced Programming, National Federation of Local Cable Modern Talking Picture Service Low-Power Hotline 5000 Park Street 906 Pennsylvania Avenue S.E. St. Petersburg, Ha. 33709 Washington, D.C. 20003 Broad range of programming available on a free loan (202) 544-7272 basis Provides LPTV information and services for nonprofit organ in tfia,s. National Audio Viisualpenter General Services Administration National Institute for Low-Power Teievisiiin Washington, D.C. 20409 International Center Broad range of government-sponsored programming. 454 Broome Street New York, N.Y.100) Public Broadcasting Service (212) 966-7526 475 L'Enfant Plaza S.W. An organization devoted to developing publications Washington, D.C. 20024 and seminars on LPN. Broad range of PTV programming. National Translator Association University of Utah Consultifig Attorneys' Media Services Department and Engineers 104 Talmage Building r Salt Lake City, Utah 84112 (801) 581-6180 See Television Factbook (Service Volume) NTA represents the translatorindultrylow-power Television Digest, Inc.. facilities that rebroadcast television stations but do not 1836 je Place N.W. originate programming: It is likely that NTA also will -Washin D.C. 20036 becomee primary organization representing LPTV stations. , r Other ITublicatIon and Selected 1Proiramningi Sources Information Sources

Agency for Instmetional Television American News Publishers Association Box A (Telecommunicg, t, Department) Bloomington, Ind. 47401 Box 17407 Eclecational programming , Dulles International Airport Washington, D.C. 20041 Appalachian Community Service Network (703) 620-9500 1200 New Hampshire Avenue N.W. Washington, D.C. 20036 Cable Television Information Center Large instructional television network with 'satellite 1800 N. Kent Street, Suite 1007 distribution. Arlington, Vit. 22209 (703) 528-6846 48 42 Corporation for Public Broadcasting 1111 16th Street N.W. Washington, D.C. 20036 (202) 293-6160 Public Bmadrasting Sehice -475 L'EnTant Plikra S.V. Washington, D.C.20024 (202) 488 -50b0 Newsletters

LPTV Reporter The Television Center P.O. Box .1567 Washington, D.C. 20013 (202) 822-9290 045/year, monthly LPTV Clowns National Insitute for Low-Power Television 17 Washington Street Norwaik, Cohn. 06854 $413/year; entindlly Lo-Power Canunisnity TV Magazine Lo-Power Community TV Publishing 7432 E. Dianion4 Scottsdale, Alt. 85257 (602) 945-6746 $50/year; monthly

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