COPYRIGHT ROYALTY JUDGES The Library of Congress ) In re ) ) CONSOLIDATED PROCEEDING DISTRIBUTION OF CABLE ) NO. 14-CRB-0010-CD (2010-13) ROYAL TY FUNDS ) ~~~~~~~~~~~~-) CORRECTED WRITTEN DIRECT TESTIMONY OF THE COMMERCIAL TELEVISION CLAIMANTS GROUP The Commercial Television Claimants Group ("CTV") files the attached Corrected Written Direct Testimony of two of its witnesses, Dr. Christopher Bennett and Dr. Gregory Crawford, in this Allocation Phase proceeding. The remainder of CTV's Written Direct Case and Written Direct Testimony, filed December 22, 2016, is unchanged. The need to file corrected testimony arises from the discovery of typographical errors, an error in the reporting of the results of one analysis, and errors in the initial categorizations of a number of programs in the massive underlying database upon which other analyses in CTV's Written Direct Testimony are based. Attached, in addition to corrected copies of the Written Direct Testimony of the two CTV witnesses, are redlined copies showing the specific corrections to their original Written Direct Testimony. Pages in the Corrected copy on which corrections have been made are labeled "CORRECTED April 11, 2017." Dr. Bennett's Written Direct Testimony presents analyses of programming data, sorted by Allocation Phase Category, for all distant signals carried by Form 3 cable operators during all of 2010-2013. He discovered possible errors in his categorization of some programs after comparing underlying data produced by Program Suppliers in connection with the Written Direct Testimony of their witness Dr. Jeffrey Gray. Dr. Gray had also attempted to categorize programs, but only for a sample of distant signals, not for all of the stations included in Dr. Bennett's study. After observing certain discrepancies, Dr. Bennett determined that some appeared to involve errors in the categories to which he had assigned some programs on some stations in his own analysis. He continued to search for other possible errors in his program categorizations, including by reviewing certain other testimony and underlying data provided by SDC, Program Suppliers, Joint Sports Claimants, and the Canadian Claimants Group in connection with their respective Direct Case filings and Amended Direct Case filings. He discovered a number of additional categorization errors in his data as a result of his further reviews and his reference to new data sources used by other parties. The correction of these errors involves the recategorization of a relatively limited number of programs 1 from several program categories into other categories. The specific corrections Dr. Bennett made are detailed in underlying documents being produced to the other Allocation Phase parties along with this Corrected Written Direct Testimony. During the course of reviewing his testimony for purposes of making these categorization corrections, Dr. Bennett also discovered that he had inadvertently reported non-final results of his separate "distance" analysis in his Written Direct Testimony. The actual final results of that analysis, which Dr. Bennett had completed at the time CTV filed his Written Direct Testimony on December 22, 2016, and which were based on the source data that CTV produced to the other The changes affect about 1.5% of the over 1.2 million program titles Dr. Bennett categorized, see Figure 3 of Dr. Bennett's Corrected Written Direct Testimony, and only about 0.2% of the over 694 million total hours of categorized programming, see id. 2 Allocation Phase parties on January 10, 2017, are now reported in Figure 6 of Dr. Bennett's attached Corrected Written Direct Testimony. Finally, because Dr. Bennett's categorized program minutes were used as an input into the regression analyses performed by Dr. Crawford, corrections are also needed to various summaries and tables reporting the results of those analyses in Dr. Crawford's Written Direct Testimony. These various corrections are reflected in Figures 4 and 6 in Dr. Bennett's Written Direct Testimony, in Figures 11, 12, and 14-24 in Dr. Crawford's Written Direct Testimony, and in additional portions of the text that report or summarize the results presented in those tables. No change other than correcting typographical errors is made to the witnesses' substantive testimony, except that Dr. Bennett's Appendix Dis also supplemented by adding a step designating the categorization corrections he has now made. Respectfully submitted, COMMERCIAL TELEVISION CLAIMANTS By: John I. Stewart, Jr. (DC Bar No. 913905) David Ervin (DC Bar No. 445013) Ann Mace (DC Bar No. 980845) CROWELL & MORING LLP 1001 Pennsylvania Ave., NW Washington, DC 20004-2595 Telephone: (202) 624-2685 j [email protected]; [email protected]; [email protected] Its Counsel Dated: April 11, 201 7 3 CERTIFICATE OF SERVICE I hereby certify that on this 11th day of April 201 7, a copy of the foregoing pleading was sent by Federal Express overnight mail and e-mail to the parties on the attached service list. Brendan Sepulveda SERVICE LIST JOINT SPORTS CLAIMANTS PROGRAM SUPPLIERS Robert Alan Garrett Gregory 0. Olaniran Sean Laane Lucy Holmes Plovnick Michael Kientzle MITCHELL SILBERBERG & KNUPP ARNOLD & PORTER LLP LLP 555 Twelfth Street, NW 1818 N Street NW, 81h Floor Washington, DC 20004-1206 Washington, DC 20036 Thomas J. Ostertag OFFICE OF THE COMMISSIONER OF BASEBALL 245 Park A venue New York, NY 10167 PUBLIC TELEVISION CLAIMANTS Phillip R. Hochberg Ronald G. Dove, Jr. LAW OFFICES OF PHILLIP R. HOCHBERG Lindsey L. Tonsager 12505 Park Potomac A venue, 6th Floor Dustin Cho Potomac, MD 20854 COVINGTON & BURLING LLP One CityCenter Ritchie T. Thomas 850 Tenth Street, NW SQUIRE, SANDERS & DEMPSEY LLP Washington, DC 20001 1201 Pennsylvania Ave., NW Washington, DC 20004 SETTLING DEVOTIONAL CLAIMANTS CANADIAN CLAIMANTS GROUP Arnold P. Lutzker L. Kendall Satterfield Benjamin Sternberg FINKELSTEIN THOMPSON LLP Jeannette M. Carmadella 1077 30th Street, NW LUTZKER & LUTZKER LLP Washington, DC 20007 1233 20th Street, NW, Suite 703 Washington, DC 20036 Victor Cosentino LARSON & GASTON LLP Clifford M. Harrington 200 S. Los Robles Ave., Suite 530 Matthew J. MacLean Pasadena, CA 91101 Victoria N. Lynch PILLSBURY WINTHROP SHAW PITTMAN LLP 1200 Seventeenth Street NW Washington, DC 20036 CTV Direct Case (Allocation) 2010-2013: Bennett Testimony Before the COPYRIGHT ROYALTY JUDGES WASHINGTON, D.C. ______________________________________ ) In the Matter of ) ) CONSOLIDATED PROCEEDING Distribution of Cable Royalty Funds ) No. 14-CRB-0010-CD (2010-13) ______________________________________ ) TESTIMONY OF CHRISTOPHER J. BENNETT, PhD December 22, 2016 Corrected April 11, 2017 CTV Direct Case (Allocation) 2010-2013: Bennett Testimony Table of contents I. Background .......................................................................................................................................................... 1 II. Scope and overview ............................................................................................................................................ 2 III. Royalty, carriage, and programming database .................................................................................................. 3 III.A. Royalty and carriage data ........................................................................................................................ 3 III.B. Station, program, and scheduling data .................................................................................................... 5 IV. Categorization of programs and program minutes ............................................................................................. 7 V. Distance measures ........................................................................................................................................... 10 Appendix A. Curriculum vitae .............................................................................................................................. A-1 Appendix B. Program category descriptions ....................................................................................................... B-6 Appendix C. Description of newly created fields ................................................................................................. C-1 Appendix D. Categorization ................................................................................................................................ D-1 i CTV Direct Case (Allocation) 2010-2013: Bennett Testimony List of figures Figure 1. Average number of systems, gross receipts, and total royalties per accounting period ........................... 4 Figure 2. Average subgroups per system, and average communities and distant signals per subscriber group ....................................................................................................................................................................... 5 Figure 3. Summary statistics for the FYI database ................................................................................................. 6 Figure 4. Total minutes airing on distant signals by year (millions) ......................................................................... 8 Figure 5. Snapshot of WGN and WGNA airings data ............................................................................................. 9 Figure 6. Distribution of distances between communities and important distant signals ....................................... 11 ii CTV Direct Case (Allocation) 2010-2013: Bennett Testimony