Dear Judge Jiganti: of the Direct Case of Public Television. Exhibit 41 Is

Home , American Playhouse

GENER/ii CDU[@Et OF Co&'n;~q&& COVINGTON 6c BURLING Jg,FI 4 FN I20I PENNSYLVANIA AVENUE, N. W. P.o. BOX 7566 WASHINGTON, D.C. 20044-7566

(202) 662-6000 CURZON STREET LONDON WIT BAS TELEFAX: (202) 662-6291 ENGLAND TELEX: 59-593 ICOVLING WSH) MICHELE J. WOODS TELEPHONE: 44-171-495-5655 CABLE: COVLING TELEFAX: 44-171-495 3101 DIRECT DIAL NUMBER (202) 662-5347 BRUSSELS CORRESPONDENT OFFICE 44 AVENUE DES ARTS BRUSSELS 1040 BELGIUM TELEPHONE: 32-2-512-9890 TELEFAX: 32-2-502-1595

January 17, 1996

The Honorable Mel R. Jiganti Chairman Copyright Arbitration Royalty Panel Library of Congress P.O. Box 70977 Southwest Station Washington, D.C. 20024 Re: 1990-92 Cable Ro alt Distribution Proceedin Dear Judge Jiganti: Enclosed please find for filing several additional items related to the direct case of the Public Broadcasting Service (RPBS"). We have enclosed a revised version of page 27 of the testimony of John Puller, which reflects corrections in the figures for 1990 and 1991 in tbe tables on estimated license fees for public television.

We also include two additional exhibits as part of the direct case of public television. Exhibit 41 is the entire "Facts About PBS" document. A portion of this document is included in PTV Exhibit 2. Exhibit 42 is a slightly simplified version of the flow chart found at PTV Exhibit 36. PBS plans to move prior to tbe testimony of Peter Downey for leave to include both exhibits in its direct case. It is likely that Mr. Downey will use an exhibit board version of Exhibit. 36 during bis testimony before the Panel.

We apologize for any inconvenience that may be caused by our submission of these items at this stage of COVINGTON & BURLING

The Honorable Mel R. Jiganti January 17, 1996 Page 2

the proceeding. All of the parties on the service list have been provided with copies of this filing. Respectfully submitted,

Michele J. Woods Counsel for Public Television Claimants

cc: The Honorable John B. Farmakides The Honorable Ronald P. Wertheim All Counsel of Record u er esiimon - 27- REVISED

the 1993 estimated licensing fee estimates to take into account the fact that licensing fees have increased generally between 1990 and 1993. This results in estimated monthly license fees per subscriber for each year between 1990 and 1992 as listed below:

1990 1991 1992 1993

First PBS Distant Signal Fee 17.5$ 18.9 21.0 24 Second PBS Distant Signal Fee 8.0$ 9,6

Third (+) PBS Distant Signal Fee 7.0

These estimated license fees can then be multiplied by the number of cable subscribers who received their first, second, or third (+) public television signal via distant signal retransmission.

See PTV Exhibit 23. The total license fees for public television, based on these calculations, are presented below:

Revenue From First Station $4,537,044 $4,780,824 $5,271,870

Revenue From Second Station $2,558,358 $2,661,212 $3,017,074

Revenue From Third Station $ 1,138,982 $ 1,354,448 $ 1,624,153 (+) Total License Fee Revenue $8,234,384 $8,796,484 $9,913,097

Percentage of Basic Fund 6.1% 6.2% 6.7%

These figures again are close to the adjusted Bortz results for public television. This is another and independent confirmation of the estimated values for public television as reflected in the 1320 Braddock Place Alexandna. VA 22314 1790 Broadway New York, NY 10019 3171 Los Fe& Blvd. ate 203 Los Angeles. CA 90039 FACTS ABOUT PBS

PBS: An Overview

PBS Activities

Pubbc Television Programs

Public Television Funding

'Ibe Public Teieviion Audience

'Bm Most-Watched PBS-Distributed Programs

PBS and Education PBS At-tivities pBS progranuning

2 National Program Service (NPS)—quality trates its efforts on developing and marketing children'. cultural, educational, news and public data delivery services utilizing the vertical affairs. science and nature, fundraising, and skills blanking interval {VBI) portion of public televisions's and programs. broadcast signal technology developed by ENTERPRISES. The point-to- 3 Adult Lettrning Service—a partnership, involv- multipoint service offers nationwide coverage ing public television stations and more than 2,000 and instantaneous delivery of computer data, colleges and universities, offering colleges graphics, text, faxes, credit information, TV TV coutms to mote than 300,000 students each hstmgs, financial data and interactive televtston academic year. Shee fall 1981, neariy 2 million to homes and businesses. students have earned credit fmn AL&distributed coutms. See also pp. 16-17. PBS Videa Marketing

d 8 0 PBS VIDEO—the largest and finest distributor quality instntctional programs and related materi- of videocassettes of pubhc televison programs to als for classrootn use in grades K-12; live, schools, colleges. libraries, hospitals, government interactive programs for studettts; professional agencies and associations for educational and development ptogruns for teachers, administra- infotmational uses. Available videos include tors and others in educanon; and national leader- programs from FRONTLINE, THE AMERICAN ship and advocacy for tbe effective use of televi- EXPERIENCE, LAND OF THE EAGLF sion and other learning technologies in elementary and secondary schools. See also pp. 18-20. MODERN WORLD, THE CIVIL WAR, EYES ON THE PRIZF THE MACNElLJLEHRER 0 Programs are obtaitxxi fnm pubhc TV stations, NEWSHOUR and Bill Moyers. PubUshes an independent producers, foreign producers and annual program catalog and a monthly newsletter. distributors, and other sources. (PBS itself does not produce programs.) 0 PBS Home Vid~istributes public television ptogtatns in the home madret under the PBS Home Video labeL PtogrIns are made available through discemt retail outlets, video and book PSS Enterprises and stores, catalogs, and direct sales to members and National Datacast viewets by local pubUc TV stations. Feature titles include 'HK CIVIL WAR L CLAUDKS; THE 0 PBS ENTERPRISES, Inc was iuetpotated in ASIRONOMERS; THE AMERICAN INDIAN May 1985 as a wholly owned, for-ptofit subsidi- COLLECTION; THE MASTERPIECE THE- ary of PBS following several years as an internal ATRE COLLECTION; "Eat Smart"; "LBJ"; division within tbe PBS nonprofit structure. NEWTOhPS APPLE; READING RAjtNBOW; ENTERPRISES develops goods and services in UZNIIIUN. areas of new technology to generate income for TRIBAL WISDOM AND THE MODERN PBS and public television stations WORLD.

0 PBS NATIONAL DATACAST, Inc a for- pmfit subsidiary of PBS ERIXRPRISES, was incorporated in May 1988. DATACASI'ottcen- PBS Activities (continued) Technology Initiatives

3 PBS Engineering provides resealch and develop- ~ Utilization of a third audio channel for second- ment of technical systems for PBS and its mem- language programming. ber stations. Past accomplishments include: American broadcast television's fust satellite ~ Training for engineering petsonnel. program distribution system; developnent of the system fo close~on pfoglams for, the beaIlng- Fuzdrair~g Services impailed; urilization of the TV signal's vertical blanking interval for message delivery, data 0 PBS Development saves as public TVs center tlansmission and other anciIlary uses; develop- for filndlaising inruvation. Its main wolk: to ment of a high-quality stereo audio sateHite identify and share tbe best strategies being dimihurian sysran: and impm emaas m LJg caliled ouf at mern ons and other W naaplofit institutions.- Current projects include: 0 Qevehpnwnt Services supphes stations with materials, professional ~ Development of mw technology for distatxe-- %w~ training opportu- leaming and interactive mstructional televLuon, nities. consulting visits, income Iepolts and including lower~st satellite distribution station a+vs.in several aleas: major and planned techniques, interactive multimedia systetns, giving, manbership, local cotporate undetwrit- and systenls for automated program index lng, and sllctions. Iecolding and cueing on coasaner-type VCRs. 0 Station Independetlc» Program (SIP) suppolts ~ Evaluation ofmw digital transmission tech- statials'embelshipfimdlaising needs by mllogies. commissioning and acquiring television specials. SIP also provides adveltising and pmmotional ~ Management and technical dilection for public materials, ptemium information, malket research, TVs satellite replacement activities. statisbcal analyses, aiR tools to enhance on-air fundraising (script and video spots, for in- ~ Industry leadership in studying, planting and stance). implementing improved televisice hmsmis- sion quality, including higMefinition televi- o Natitwlal Corpora)» Support wolks with sion (HDTV). stations, major ptoducers and colpotate execu- tives: 1) to ilcmase tbe satisfactioa of national ~ Malketmg suppolt, Iesealch and development undetwritets and 2) to help ptoducing stations for the PBS NATIONAL DATACAST it+tease tbe mmber of corporate and folmdation venicai 5!at&ng interval data delivery service. suppolters. especially those contributing $ 1 millxm or more each year. ~ Broadcast equipment evaluation services for member stations. Q The Natiutlal Auction Service (NAS) supplies stations with highly matketable donated goods ~ Support of public televison's Descriptive and services for use in ~ auctions and Video Service, a special audio cbarml pto- sweepstakes. '111Iough NAS. businesses can take viding natrated descriptions for visually part in as few as one or as many as 86 station IQlpalled vtewels. auctions, as well as several majormalket sweepstakes — all using em contact point at PBS. YQ 2zccw A~ -'' -' a. ~( I av 3:":'. '=s.=e' Blv"':e 3 =s Ar.ge!es, CA 90039 FACTS ABOUT PBS

PBS: An Overview

PBS Activities

Public Television Programs

Public Television Funding

The Public Television Audience

The Most-Watched PBS-Distributed Programs PBS and Education

July 1992 PBS: An CMenriewr

The ln a partnership with public TV stations and more Public 'than 2,9N colleges and universities hatidn&de„a ' j-ctIortiInated service provides college-cmiit Broadcasting course~ to kore than 300,000 students each Service year. Public television also provides outstanding instructional programs a+i materials for class- 2 A private, nonprofit coqeration whose members room u.e in grade. K-12. are the nation's public TV stuns.

2 Founded in 1969,

2 Provides quality TV programming and related services to 344 noncomrnenial stations serving Hqw Iq PBS Governed? the United States, Puerto Riru, the Vien i'ands, Q PBS ha@ a 35-member board of directors consist- Guam and Samoa.

ing of 15 lay representatives from boards, 13 profession ti stations'overning representatives 6 176 noncommercial, education d licensees operate from station management. six general diiectors these 344 stations. anCh the PBS president. 2 Of the 176 licensees„86 are community organiza- Officers of the board of directors are Ted R. tions, 56 are colleges or universities, 24 are state 0 (vice president for university relations„ authorities and 10 are local educational. or mutiici- Canner University of Utali, Salt Lake City, Utah, repre- pal authorities. senting KUED Salt Lake City), chairman; Stephen GreysI.r (professor of business 2 The approximately 335:s~f members in Alex- , A, adiIainistration, H uvard Business School, andria, Virginia, New York City atjd Los Angeles representing WGBH Boston) and Paul M direct program arxtui.sition and scheduling,, educa- Norton (Executive Director, Wisconsin Educa- tional services, video marketing, advertising and tional Television Network), vice chaunnen. promotion, audience research, broadcast mi technical operations, fundraising development, engi- 0 Bruce L. 4hrigensen is tlM president of PBS. neering and technology development, and tri his appoiritment in May 198'4, he was revenue-produciiig activities. Pier president of the National As~iation of Public Te)evi~ion,. Statiory. PBS paved the way and continues to be the leMr in quality childrca's„culitural, educational, nature, news, public affiurs, scinxe and skills progratn- ming. PBS is "TV Worth Watching."

2 Created American broadcast tellevision's first satellite program distribution system (1978).

FACTS hBOUY PRi PBS Activities PBS Programming

2 National Program Service (NPS)—quality trates its efforts on developing and marketing children'. cultural. educational, news and public data delivery services utilizing the vertical affairs, science and nature, fundraising, and skills blanking interval (VBP portion of public programs. televisions's broadcast signal and technology developed by ENTIM'RISES. The point-to- 2 Adult Learning Service—a partnership, involv- multipoint service offers nationwide coverage ing public television stations and more than 2,000 and instantaneous delivery of computer data, colleges and universities, offering college-credit graphics, text, faxes, credit information, TV TV courses to more than 300,000 students each listings, financial data and interactive television academic year. Since fall 1981, nearly 2 million to homes and businesses. students have earned credit from ALS-distributed courses. See also pp. 16-17, PBS Video Marketing

2 Elementary/Secondary Service—provides PBS VIDEO—the largest and finest distributor quality instructional programs and related materi- of videocassettes of public television programs to als for classroom use in grades K-12; live, schools, colleges, libraries, hospitals, government interactive program for students; professional agencies and assodations for educational and development programs for teachers, adttumstra- informational uses. Available videos include tors and others in education; and national leader- programs from FRONTLINE, THE AMERICAN ship and advocacy for the effective use of televi- EXPERIENCE, LAND OF THE EAGLE, sion and other learning technologies in elemen- MILLENNIUM: TRIBAL WISDOM AND THE tary and secondary schools. See also pp. 18-20. MODERN WORLD, THE CIVIL WAR, EYES ON THE PRIZE, THE MACNEIL/LEHRER 3 Programs ate obtained from public TV stations, NEWSHOUR and Bill Moyers. Publishes an independent producers, foreign ptoducers and annual program catalog and a monthly newsletter. distributors, and other sources. (PBS itself does not produce programs.) PBS Home Vid~stributes public television programs in the home market under the PBS Home Video label. Programs are made available through discount retail outlets, video and book PBS Enterprises and stores, catalogs, and direct sales to members and National Datacast viewers by local public TV stations. Feature titles include THE CIVIL WAR; I. CLAUDIUS: THE 2 PBS ENTERPRISES, Inc was incorporated in ASTRONOMERS; THE AMERICAN INDIAN May 1985 as a wholly owned, for-profit subsidi- COLLECTION; THE MASTERPIECE THE- ary of PBS following several years as an internal ATRE COLLECTION; "Eat Smart"; "LBJ"; division within the PBS nonprofit structure. NEWTON'S APPLE; READING RAINBOW; EN'IKRPRISES develops goods and services in "Empire of the Air"; and MLLENNIUM: areas of new technology to generate income for TRIBAL WISDOM AND THE MODERN PBS and public television stations. WORLD.

3 PBS NATIONAL DATACAST, Inc., a for- profit subsidiary of PBS ENTERPRISES, was incorporated in May 1988. DATACAST concen- PBS Activities (continued) Technolagy Initiatives

3 PBS Engineering provides research and develop-, . Utilization of a third audio channel for second- ment of technical systems for PBS and its mem- language programming. ber stations. Past accomplishments include: American broadcast television's first satellite ~ Training for engineering personnel. program distribution system; development of the system to close-caption programs for the hearing- F~~cric4~g Seppjt."eS impaited; utilization of the TV signal's vertical blanking interval for message delivery, data 'Q 'PBS Development serves as public TVs center transnussion and other ancillary uses; develop- 'for'fundmisinginnovation. Itsmainwotk: to ment of a high-quality stereo audio satellite Iidehtibf and share the best strategies being distribution system; and improvements in UHF camed out at member stations and other reception and transmitter efficiency. horipm6t Current projects include: ihstitutidns.'evelopment Services supplies stations with ~ Development of new technology for distance how-to materials, professional training opportu-

nities, consulting visits, income reports and learning and interactive instructional television„'ncluding lower-cost satellite distribution ,station news in several areas:, major and planned techniques, interactive multimedia systems, giving, membetship, local corporate underwrit- and systems for automated ptogram index ing, and auctions. recotdmg and cueing on consumer-type VCRs.', o Station Independence Program (SIP) supports ~ Evaluation of new digital ttatmnission tech- stations'embership fundraising needs by nologies. commissioning and acquiring television specials. SIP also provides advertising and promotional ~ Management and technical direction for public, ,materials, ptemium information, market research, TV's satellite replacement activities. statistical analyses, and tools to enhance on-air fundnising (scripts and video spots, for in- ~ Industry leadership in studying, planning and 'stance)'. implementing improved television transmission quality, including higMefinition televi- IQ INatiorial Corporate Support works with sion (HDI'V). stations, major producers and cotpot3te execu- tives: l) tn increase the satisfaction of national ~ Matketing support, teseatch and development 'unde~ters and 2) to help producing stations for the PBS NATIONAL DATACAST 'incteas'e th'e number of corporate and foundation

service. ,' vertical blanking interval data delivery ! @betters,'specially, those contributing $ 1 million or mote each year. Broadcast equipment evaluation services for member stations. 'Q 'he National'Auction Service (NAS) supplies stations with highly marketable donated goods ~ Support of public television's Descriptive 'and services for use in on-air auctions and Video Service, a special audio channel pro- sweepstakes. Through NAS,'usinesses can take viding narrated descriptions for visually patt in'as few as one or as many as 86 station impaued viewets. 'udtiohs, as well as seveml major-market sweepstakes — all using one contact point at PBS.

FhCTS AKlQT PSS PIN&lic Television Programs

Among the many series on PBS during 1992-93: Millennium: Tribal Wisdom and the Moyers: Healing and the Mind Mcdern World 2 Adult Learning: Mystery! Agsmst Ail Odds The Prize Amencas Travels The American Adventure America in Perspecuve Business and the Law a Elementary/Secondary: The Business File Amigos The Business of Management Castle By the Numbers Cathedral The Civil War Challenge of the Unknown College Algebra Eat Well—Be Well Destinos Equal Justice Under Law Discovering Psychology France-TV Magazine Earth Revealed Futures With Jaime Escalanie Economics USA Icewalk Ethics in America Race to Save the Planet Faces of Cuhure Teaching Modules For All Practical Purposes Second Voyage of the Mimi French in Action 3-2-1 Classroom Contact Here's to Your Health Voyage of the Mimi Joseph Campbell: Transfoimations of Myth Through Time Literary Visions The Pacific Century J News and Public Affairs: Adam Smith Portrait of a Family Americas Race to Save the Planet Bill "Specials" Rural Ccsnmunities Moyers DeGaulle and France Sociological Imaginaticn Election '92 Speciais Voices 4 Visions Firing Line Special Debates The Western Tradition Fttxttline The World of Abnormal Psychology Listening to America With Bill Moyers The World of Chemistry 'Ihe MacNeil/Lehter NewsHour Worlds of Childhood Made in the USA The Write Course The Pacific Cennuy P.O.V. a Children': ...Talking With David Frost Technopolitics Barney dr. Friends Behind the Scenes Tony Brown's Journal Degrassi High Wall Street Week With Louis Rukeyser Lamb Chop's Play-Along Washington Week in Review Long Ago k, Far Away Mister Rogers'eighborhood Q Science: Reading Rainbow The Dinosaurs! Sesame Street The Health Quarterly Shining Time Station Medicine at the Ctosstoeds Squaie One TV National Audubon Society Specials Where in the World Is Carman Sandiego2 National Geographic Specials Wonderworks Family Movie Nature The New Explorers a Cultural: Newton's Apple Alive TV Nova Realms the Russian Bear Ali: The Whole Story of Scientific American Frontiers The American Experience American Masters The Space Age Wild America American Playhouse Austin City Limits Childhood Q Skills: Columbus and the Age of Discovery Ciao Italia The Creative Spirit 'Ihe Frugal Gourmet Dance in America Hometime Dancing! Motorweek '92 Evening at Pops 'Ihe New Yankee Workshop Garrison Keillor "Specials" This Old House 'Ihe Glory and the Power The Victory Garden Great Performances 'Ihe Woodwright's Shop 'Ihe Kennedy Saga Live From Lincoln Center The Machine That Changed the World a Outreach Campaigns: Mark Russell Comedy Specials Election V2 Masterpiece Theaue Ptoject Education The Metropolitan Opera Presents

Public Television Funding

How Is the Public Television System'FundecV 2 Public television's national, regional and local J The largest federal source in FY91 was the 'h

income in FY91 was $1.32 billion. according to appmpriation to the Corporation fbr Ruble I the Corporation for Public Broadcasting. Four- HIroadc~g, w'ith $17'7.9 million. (13.5%) of

fifths (81.0%) of the funding came from public television's income. Nonfede& sources ~ nonfederal sources, particulariy subscribers WereIledIby Stab„'an'd lacal 'gove~ents, with a (21.6%), state governments (19.3%) and busi- combined figure of $306.0 miHion (23.2%). nesses (17.4%).

&:v Public Televh&In Income — FY91 An analysis of all income for public television fort FY91,i as provided by the Corpora]ion for'ublic Broadcasting (CPB):

Source Sin millions .% oftotal

FEDERAL GOVERNMENT ~$ 25085 ~ 19.0% CPB (TV only) i177i 9 13.5 Educ. 8c Commerce Depts., NEA, NEH, etc. 72.7 5.5

NONFEDERAL I $1969I.4 81.0% h$

..cM Subscribers 285.5 ,21.6 State Governments 255.1 19.3 Businesses :229.6; ;17.4

State Colleges I 86.9 !

Foundations I 56.4 I 4.3

Local Governments , 50.9, . 3.9 Auctions 20.1 13 1.0 Private Colleges , 13.2

Other Public Colleges , 12.4, 0.9

All Others , 59.3; , 4$ TOTAL $1320.0 100.0% Public Television Funding (continued)

Public Television Viewer Support

Dollars Members Average in MilHoas in Millions Coatributioa FTSO $77.90 2.60 29.96 FT81 102.40 2.90 35.31 FT82 1 1 1.80 3.30 33.88 FT83 147.00 3.50 42.00 FT84 160.00 3.80 42. 11 FT85 180.00 3.90 46. 15 FT86 200.20 4.20 47.67 PT87 230.20 4.70 48.98 FT88 240.50 4.70 51. 17 FT89 262.00 5.20 50.38 FT90 272.50 5.20 52.40 PT91 280.70 5. 10 55.04

Public Television Total Income FY 1980-91 S in Millions Source: CPB

N I I ~N R I

FY80 FY81 FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY9t Public Television Ftiridtrig (cantinuecjl)»'he ~

How Is the Public Broaddahtirhg 'Service Funded~

PBS budget for FY93 (July 1, 1992-June 30'stations. 14.6t!o comes fmm the Corporation for

1993) of $ 156.001 million is paid primarily by ': Public Broadcasting and 12.4% is from educational member stations: 73.0% of the budget is paid by " institutions, interest income and'other sources.'BS

FUNDING SOURCES-FY93 Source Dollars Percen in Nti !lions oftora. '.:: ".3 Member Stations -Programming and Membership Assessments $106339 -Optional Services (Station Independence /.602 Program. National Auction Service, PBS Encore!, etc.) 11%957 73.0%

Corporation for Public Broadcasting Grants -National Program Service '2&2d -Programming Support (audience '.200 research and captioning) 22.720 148

Qcj Other Sources -Educational institutions 15.638 (Customers or PBS VIDEO, Adult Learning Service, g'lementary/Secondary Service) -Interest Income and other 3.686 p 19924 12A%

TOTAL $156.N1 1N.0%

4~~

More than four-fiflhs ($42%) ofPBS's FY93 budget 0 $20.722 million (13.3%) — Program distribution goes to program ptoduction, acquisition, promotion', and administration, including operation of the and distribution: ~~&»te intercotmction system'and promotional support.

2 $110.647 million (70.9%) — Program production. acquisition and promotion, including the National'mgram 11m progtatnming funds administered by PBS Service and Station Independence represents only a portion,ofthe total cost of PBS's Program. National Program Service.

a FA~ AIOUT pls Public Television Funding (continued)

How Is the PBS National Program Service Funded?

PBS operates public television's National Program producers, and other producers and program Service (NPS), which provides quality children', distributors throughout the world. cultural, educational, news and public affairs, science and nature, fundtaising, and skills programs. Support totaling $260.1 million was provided for NPS programs and series that began their initial These programs are drawn from many sources, broadcast in FY91. Funding sources indude: including public television stations, independent

National Program Service Funding Sources — FY91 Dollars in Percentage Percent change Source millions oftotal from FY86

Public TV Stations $87.9 33.8% +83%

Corporations 73.7 28.3 +25

Corporation for Public Broadcasting 37.1 14.3

Foundations 23.5 9.0 +267

Government Agencies 11.3 4.4 -6 Other (independent producers, individuals, associations and community groups, etc.) 26.6 10.2 +22 TOTAL $260.1 100.0% +51%

3. AC

In FY91, 1372 hours of original broadcast program Ofthese 1472 hours, 32.9% were produced by were distributed: 43.6% were public affairs pro- American independent producers, 28.2% by public combined efforts of grams, 27A% were cultural programs, 9.7% were television stations, 23.7% by the children's programs, 8.3% were how-to programs, public television stations and independent producers. other 8.4% were science and nature programs, 2.5% were 10.4% by foreign producers, and 4.8% by indepen- educational programs (does not include instructional combinations of public television stations. producers. programs for classroom use), and 0.1% were sports dent producers and foreign programs. The Public Telh&didnAudience' '»' '

2 During the period of October 1991-May 1992, Q Among public TV viewers capable of receiving viewers in 51.9 million homes watched public TV. moie than one public TV station'on cable, 79% each week, according to the Nielsen Television iteported wiatching mare than oei', according to

Index (NTI). This reptesents 56.3% of America's i 92.1 million households with TVs (during this period), or 91.7 million people. Q 98% of all U.S. homes with a TV can receive a public TV station. 'Qm most widely available J During prime time in this period, public TV was cable network (CNN) can be seen by only 65%. watched each week in 28.7 million homes by 45.21 million people. Q During the October 1991-Match 1992 period, public TVs average prime-ttme sting was 2.2, Q The average viewing household during this periodi icompated with 0.7 for Discover, 0.6 for CNN, watched slightly less than three houts of public '0.6 for'Nick at Nite and 0.5 for ARE. television during the course of a week: of this amount, an hour and a half was spent with prime-: ' '56.9% of all cable subscribers watched public TV time progr~untning. 'eaCh weelr, durmg October 1991;May 1992, according to the NTI. Q 80.2% of all American televisionwwning families—74.4 million households repmntmg 155.4 million people—watched public television in Match 1992, with the average home tuning in for almost eight hours during the month.

Q Many communities have more than one public TV station, each offering a distinctive, separate progtamming service. Two-thirds of cable

subscribers say one of the reasons they subscribe i is for better reception of a pubhc TV station or access to more than one public TV station, according to Statistical Reseatch Inc. (SM).

10 FhCTS AMUT NS The Public Television Audience (continued)

Audience Demographics

Below is a breakdown, by TV household characteristics, of the public TV audience for an average week during October 1991-May 1992. National demographic figures ate also provided. (Source: Nielsen Television Index)

Total U.S. Total U.S. TV P1V TV P7V Households Audience Households Audi ence Racee Income Black 11.1% 9.4% Less than $20,000 30.5% 26.4% Non-Black 88.9 90.6 $20,000-$39,999 30.3 29.6 $40,000-$59,999 19.9 21.9 Educations $60.000+ 19.3 22.1 Less than 4 yrs. high school 21.8 19.4 Age 4 yeats high school 36.2 353 Children {2-5) 1-3 years college 18.8 19.0 6.2 8.1 Childten (6-11) 4+ years college 23.2 26.1 9.1 7.0 Teen-agers (12-17) 8.5 5.3

Occupations Women (18-34) 14.0 11.2 Prof./Owner/Manager 24.8 26.9 (3549) 11.4 10.7 Clerical & Sales 15A 14.3 {50-64) 7.2 8.8 Skilled & Semiskilled 30.2 283 (65+) 7.3 9.6 Not in labor force 29.6 30.3 Men (18-34) 13.8 12.0 (3549) 11.0 11.8 (5044) 6.5 8.3 (65+) 5.1 7.3

'ead of household The Mlost-V/ale:hed PBS Distributed Progrcxrn (as of May 1992)

;I', p~'~ cP

l'"0e o~',P~P +4~~o +s gQ ~s e Title Tive

NATIONAL GEOGRAPHIC NATIONAL GEOGRAPHIC SPECIAL: 'The Sharks" 1/82 17.4% 24.1 SPECIAl,: "In the Shadow of Vesuvius" 2/87 13. 1% 17.2 NATIONAL GEOGRAPHIC SPECIAL: 'The Grizzlies" 3/87 17.0% 22.3 TIIE CIVIL WAR: "The Cause" 9/90 12.9% 14.9 NATIONAL GEOGRAPHIC SPECIAL: "Land of'he: THE CIVIL WAR:', Tiger 1/85 16.5% 22.4 "Most Hallowed Ground" 9/90 12.9% 15.4 NATIONAL GEOGRAPHIC NATIONAL GEOGRAPHIC

SPECIAL: 'The Incrediible , SPECIAL: "Save the Panda" 3/82 12.8% 17.7

Machine" 10/75 16.0% 19.0

"Lawrence Welk: "Great Moments With Te(evasion's Music Man" 3/87 12.7% 16.6 NATIONAL GEOGRAPHIC'/85 15.7% 21.3'Best NATIONAL GEOGRAPHIC

of WILD AMERICA: , SPECIAL: "Realm of the 'The Babies'" 3/87 14.7% 19.3 Alligator" 4/86 12.7% 1'7.5

"The Music Man" 3/85 14.7% 18.7 NATIONAL GEOGRAPHIC SPECIAL: "Rain Forest" 1/83 12.7% 18.0 "Live From the Grand Ole Opry" 3/79 14.6% 16.3 NATIONAL GEOGRAPHIC SPECIAL: "Among the Wild

"Live From the Grand Chimparvxes" 1/84 12.5% 168 i Ole Opry" 3/80 14.2% 16.3 "Saving the Wildlife" 3/86 12 4% 17.0 NATIONAL GEOGRAPHIC SPECIAL: "Lions of the "Making of M~A*S*H" 1/81 12.4% 14'.5 African Night" 1/87 13.8% 18.1 TIIE CIVIL WAR: WORLD: "Death of a "Forever Free" 9/90 il2.I3%i 13.5

Princess" 5/80 13.8% 14.7

NATIONAL GEOGRAPHIC NATIONAL GEOGRAPHIC SPECIAL: "Etosha'" 1/81 12.1% 16.0 SPECIAL: "Polar Bear '/90 Alert" 3/82 13.,3% 18.4 TIIE CIVIL WAR: "The 1Jni ver of Battle" 12.1% 14.2 "Great Moments Wi.th NOVA" 3/87 13.:2% 17.3 THE CIVIL WAR: "The Be,tter Angels of Our Nature" 9/90 12.1% 13.0 '

'Television Indier data)., Cumukttive audience: the percimtage of U &i. TV ~hn~ viewing at least six minutes ofa program (lVielsen Viewers = PBS Research estimate.

12 Most-Watched Programs (continued)

The A11-Time Most-%Patched Classical Music/Dance Programs

g IP4~ Title Title

"Championship Ballroom LIVE FROM LINCOLN Dancing" 1/87 8.9% 10.9 CENTER: "Danny Kaye With the N.Y. Philharmonic" 9/81 7.3% 6.5 GREAT PERFORMANCES: "A Lincoln Center Special: "John Curry Skates Peter Beverly! Her Farewell and the 1/82 7.2% 8.8

Performance" 1/81 7.9% 8.0 Wolf'IVE FROM THE MET: LIVE FROM LINCOLN "Aida" 1/85 7.2% 8.3 CENTER: "Luciano Pavatotti Sings With the N.Y. GREAT PERFORMANCES: Philharmonic; Zubin Mehta. "Best of Broadway" 5/85 7.0% 7.7 Conductor" 4/83 7.8% 7.5 LIVE FROM THE MET: LIVE FROM LINCOLN "The Mettopolitan Opera CENTER: "Pavarotti Plus" 1/86 7.6% 7.5 Centennial Gala" (Part 2) 10/83 7.0% 7.9 "Championship Ballroom 1/90 73% 9.9 LIVE FROM LINCOLN Dancing" CENTER: "Sutherland/ Horne/Pavarotti in'Concert" 3/81 7.0% 6.3 "Championship Balltoom 2/91 73% 9.7 Dancing" GREAT PERFORMANCES: "Purlie" 3/84 6.9% 7.5 "The Nutcracker" 12/82 7.5% 9.4 "From Vienna: The New LIVE FROM LINCOLN Year's Celebration 1987" 1/87 6.9% 9.0 CENTER: "A Lincoln Center Christmas Gala" 12/90 73% 10.2

InCht data) ~ Cumulative audience. the percentage ofUS. TV htgnggviewing at least six minutes ofa program fPlielsen Television Viewers = PBS Research estimate.

13 Mos't-Wat'cl18d Progricrfzl's '(Qor1tjz|usIct)

The All-Time Most-Wats:hM Drama hograms gP4'~C ++pal

Title Title

WORLD: "Death of a AMERICAN PLA'YHOUSE: Princess" 5/80 13.8% 14.7 "Stand and Deliver" 3/89 8.0% 8.7

"The Sailor's Return" 1/84 9.8% 12.3 'REAT PERFORMANCES: "Life on the Mississippi" 11/80 7.7% 9.0 AMERICAN PLAYHOUSE: "Smooth Talk" 2/87 9.3% 10.6 MASTERPIECE THEATRE: "The Flame Trees of 'Isa" WONDERWORKS: "Anne of (P& 3) 1/82 7.5%'8.6 Green Gables—The Sequel" (Part 1) 3/$88.9% 11.0 AMERICAN PLAYHOUSE: "Raisin in the Sun" 2/89 7.4% 8.0 WONDERWORKS: "Anne of Green Gables—The Sequel" MASTERPIECE YHEATRE: (Part 2) 3/88 8.7% 10.8 "To Serve Them All My Days" (Part 2) 10/82 l7.3'8.5 "The Scarlet Letter" (Part 1) 4f79 8.6% 9.'6 MYSTERY t: "The Lathe of Heaven" 1/80 8.5% 9.7 "Sweeney Todd" 10/82 7.3% '.5 AMERICAN PLAYHOUSE: 'I'The Scarlet Letter" (Part 4) 4/79 7.3% 8.2 "Testament" 11/$4 8.1% 10.3

~ Cumulative audience: the percteuage ofUS. TV httmgg vietving at least six minutes ofa program (Nietsett!Televisitm l~ex ~dota & Viewers = PBS Research estimate.

14 FhCtS hROUT PSS Most-Watched Programs (continued)

The All-Time Most-Matched Public Affairs Programs'itle

0'(& y~o~ 5Pa~y ~~gb gl 0'Gen. g Title H. Norman VIETNAM: A TELEVISION Schwartzkopf'...TALKING HISTORY: "Tet, 1968" 11/83 7.0% 8.2 WITH DAVID FROST 3/91 10.0% 14.0 FRONTLINE: "The Real Life FRONTLINE: "An of Ronald Reagan" 1/89 6,9% 8.4 Unauthorized History of the NFL" 1/83 9.2% 10.9 "Visions of 'Star Wars'. A NOVA/FRONTLINE VIETNAM: A TELEVISION Special Report" 4/86 6.8% 8.8 HISTORY: "Roots of War" 10/83 8.7% 10.2 VIETNAM: A TELEVISION FRONTLINE: 1/91 8.5% 11.1 HISTORY: "The First Vietnam "To the Brink of War" War (1946-1954)" 10/83 6.8% 8.0 FRONTLINE: "Death of a FRONTLINE: Porn Queen" 8.2% 9.7 "88 Seconds in Greensboro" 1/83 6.7% 7.5 "Democratic Presidential FRONTLINE: Debate" 1/84 8.0% 9.4 "The Earthquake Is Coming" 2/87 6.6% 7.8

CHILD SEXUAL ABUSE: VIETNAM: A TELEVISION WHAT YOUR CHILDREN HISTORY: "America' SHOULD KNOW: Mandarin (1954-1963)" 10/83 6.4% 7.5 "A ProgramStuff'/87for Parents" 9/84 7.4% 8.7 FRONTLINE: "The Real 1/87 7.1% 8 4

¹ Programs covering current or recent issues ofpublic concern. ~ Cumulative audience: the percentage of US. TV ~ viewing at least six minutes of a program (Nielsen Television Index data). Viewers = PBS Research estimate.

15 PBS and Education The PBS Adult Ledming Service (ALS) ALS in Brief The ALS Partnership

2 The first nationwide effort (1981) to provide 5 ALS assists stations and colleges with couise coordination and focus for adult learning thmugh acquisition, scheduling and distfibutiori, television. (Instruction via TV began on an ad hoc'I promotion and marketing, audience'esearch, 'atiOnal

basis in the 1950s with a few pioneering colleges.) ' prbgram Screenings,'nd

and training. prnf'ssSiona'evelopment Local partnerships, involving more than 2,000 colleges and universities and 96% of all public TV 'tations, 0 Local public TV stations broadcast the tele-

working together to provide greater vision courses,'oordinating selections,

access to a college education to adult Americans. schedules and pmmotion with their'local of higher education. 'nstitutions 2 These partnetships offer hundmls of horn of I 'lng quality college-credit TV courses to more than Q Local colleges select the courses they want to 300,000 tuition-paying students each academic offer, assign faculty and award cred'it accoid- year. Since fall 1981, over two million students to theirl standards and needs. have bccn scrvoi.

Q In addition to those taking comes for college cmlit millions morc watch television courses The E~no~cs of ~)QS, each week during prime time and other hours for their own self-improvement and enjoyment Q Participating colleges and univeditieIs gy the I Each course undergoes rigorous review by Adult Learning Seprice a license fee for the right ' teaching faculty, scholars and instructional to use an ALS course for ctedit

designers to guarantee faculty and students a

Q Students seeking credit valuable educational experience. come throu@ ALS'rogtams euoll at participating st:hopis ttndlpay Q %hile ALS makes available an array ofTV Initipn Qs,to tItesc colleges. Till schoolls then I courses and support services, the local partner- forward to ALS a small fee for e~ htudentl ships decide which elements will best serve the enmlled in an ALS course. needs of their communities. 0 Funds received by ALS support the ALS 0 Comes are acquired from PBS member stations, pnriice, ~udwng Ioyyltip to,the. program . college-based producers, independent producers p&ucqts and payments to B rpcttltbeg and consortia of educational program pmducets. W~~g~ pmg

ALS returned neady $2I.5 tftillibn to Q The current ALS catalog includes 54 courses in Q P FY9), and producers. the arts and humanities, history and the social partItcipating s4diops ~their 1.5 million was paid to PBS in overhead feles tO sciences, science and health, business and technol- $ help offset oveiall PBS operationlal elxpettseS. ogy, and professional development and teacher education.

gb FACTS @ROUT FIS PBS and Education (continued)

The ALS Student The Economics of ALSS

68% are female; 70% are between the ages of The basic yearly fee for participating colleges is 23 and 49; 14% are minorities. $1300. Some ALSS programs and services are included in the participation fee, while others ~ 40% are working toward bachelor's degrees; have modest charges, Colleges select the 38% are seeking graduate degrees. pmgrams they wish to use, tailoring their participation to local needs.

Cl Most coQeges recapture the initial ALSS participation fee though free access, free programming, remarketing opportunities, The Adult Learning Satellite reduced fees and other savings. Service (AL'lS) I3 ALSS, like the rest of the Adult Learning Service, is self-supporting. Revenue received ALSS is an initiative of the Adult Learning from the licensing of ALSS programming Service and local public television stations to supports ALSS, including royalties to producers deliver, via satellite, quality educational pm- and payments to participating stations. gramming directly to colleges.

'Gmugh ALSS, over 1,800 colleges with satellite-receive equipment have directly accessed complete television courses, resource programming for classroom and library use, and The ALSS Audience live and taped videoconferences, lectures and seminars for faculty, administrators, students 0 Over 2,000 colleges are known to have satellite- and off-campus groups. Of those colleges, some receive equipment, and that number is gmwing 360 are full participants in ALSS. rapidly.

2 ALSS extends and complements the Adult Q ALSS programming will reach many thousands Learning Service by pmviding a nonbroadcast of campus-based students, adult learners, faculty programming service to colleges. Broadcasts on members and administrators, as well as govem- public television stations will continue to be the ment agencies, businesses, social service primary means of delivering television courses organizations and other employers and commu- to most adult learners. nity groups with direct satellite-receive capabil- ity. PBS and Education (continued)

The Business Channel

2 In fall 1989, the Adult Service launched ' As'ith ALSS Learning j membership,'members of The 'Ihe Business Qlannel, a specialized program- Business Chaimel select the programs they wish ming strand that provides colleges and busine~ 'o use,'ailoring their'participation to local needs. with up-uxiate programs on topics such as '~ Colldgesl and businesseis lecapture their

marketing, management and software training. l pattici~on fee through: free access, free Businesses and colleges that have satellite- pleviewing, lemarkeiing opportunities and receive equipment can duectly access business- reduced fees.

related resource programs and live and taped

videoconferences featuring top business experts.', 0 The Business Qlannel is self-supporting, and During FY93, The Business Qlannel will feature'ver ~ revenue mceived'from tile licensing of its

50 business training and resource programs i ~gtmimningi supports 7he Business Qlarlnel, and over lwo dozen live, interactive videoconfer-, including toyaltieis to producers and payments lo ences. paltlclpahng stahons.

2 Nearly 300 Businesses have accessed The i Q i 'He Business Qlannel programming is always

Business Channel progralnming since 1989. I avIulahle tria C-bImd'satori;lli&-receive equipment

and is often available on Ku-band as well. The

Q ALSS members receive a free membership in ~ Business Chaelel pmgrams=because of their The Business Channel. The basic yealiy fee for ,'usinesses immediate applicablhty--ale an important

and colleges that wish to join'Ihe ~ resource to students. adult learners and business Business Chmlel separately is $500.

The PBS Btementarr/SeadnClatv',Servtce gSS)',

ESS in Brief

The PBS Elementary/Secondary Service: 0 serves as a national advocate for the use of

Q increases the reach and utility of appropriate i television and other technologies for learning PBS prime-time programming to the K-12 in the nation's schools; and education community; 0 works with other national and regional organi- a acquires and distributes high~uality school zations to track developments in national television programs for formal and informal policy for the educational television commu- instruction; lllty.

Q provides professional development programs i ESS, servlingi a dual constituency of public for teachers and other educators; television stations and the education community, works to maintain and expand the, position of PBS, stations as the pleferred CI supports and provides electronic and print and public television information services for and about public providers of school television prograuuning ~and yationwide. television and education; l segiqes

14 PBS and Education (continued)

Public Television's School School Television and Other Services at a Glance Prograzraning Resources

2 83% of public TV stations average five hours per Primary activities of ESS are the acquisition and day of educational programming specifically for distribution of exceptional programming specifi- classroom use. cally designed for classroom use, including live special events. (Instructional programming includes Of these, 93% use their main broadcast channel to teacher guides and other support materials to help deliver programming to schools. In addition, 70% educators integrate the ptogramming into classroom also deliver programming to schools via other curricula.) Curriculum areas include math, science, methods, such as satellite, ITFS (microwave) or history, reading, art, music, career planning, social dedicated cable channel. studies, language arts and foreign languages.

2 85% of these public television stations supple- ESS also works to extend the educational value of ment their programming with additional educa- PBS general-audience programs, such as WHERE tional materials and utilization services, often in IN THE WORLD IS CARMEN SANDIEGO?, conjunction with related state or local education THE NEW EXPLORERS, NATIONAL GEO- agencies. GRAPHIC SPECIALS and SCIENTIFIC AMERI- CAN FRONTIERS, which have extended school Two-thirds (29.5 million) of all elementary and rights and ancillaty materials to support classroom secondary students attend schools that ate served use, thanks to underwriter support. by public TV stations. PBS Tune-In Guides, highlighting selected prime- time educators TV J 76% of public TV stations broadcast interrelated progratntning, help to use public more easily. Tune-In Guides provide school progranuning in large blocks, usually in programs series descriptions, titles, information the middle of the night, specifically for schools to program about off-air recording rights and related educa- record on videocassettes and use at their conve- tional materials, and viewing that allow teach- nience. tips ers, librarians and families to plan activities using the programs as a base.

19 PBS and Education (continued)

r Professional Development ; PBS Education Clecainghouse'he Programming PBS Education Clearinghouse collects and

and conducts rese'arch ori the ESS is a leader in providing stations and other QsQjbutp ipfoqnapon, video and related technologies.'he education agencies with professional development ipstrpctipng us@ o( Learning File,.a thrice-yearly. publication of the opportunities for educators and school administra- data from PBS research tors. Past videoconferences have addressed educa- Clearin~use„includes studies, success stories from exemplary programs tion and research, technology tools for teaching,

and articles national eduqatiqn leaders l successful school restructuring, academic tracking, projects, by prpctiporIers, legislative, update's, and other student assessment, collaborative learning tech- +~ materials collected hum across the country.', niques, critical thinking skills, at-risk students, school-businessxommunity partnerships, and school policy and legal issues;..arding AIDS.

Technology Projects P~~mrships With Education:

ESS is working with PBS Engineering to develop ESS 'serves as a'national advocate, for the use of innovative distance learning and interactive technol- learning technologies in the nation's elementary andh ogy services for educators and students. These secondary schools. Through such activities as the activities include using new satellite technology to ESS National Advisory Committee (representing create a multichannel instructional service to extend education groups and public TV stations), outreach., public television's contribution to education. and promotional and awareness efforts, ESS works, to build paltershlps with national educahon lassocia- In addition, ESS supports the use of EDISON, tions to broaden the support within the education LEAKING LINK and CURRICULUM CONNEC- cominunity for pub}ic television programming and i TION, on-line data systems developed by local services land to ensure that,protons meet critical public TV stations and regional organizations to needs in education. support and extend the use of public TV programming in the classroom.

,'20 PBS PROGRAMMING FUNDING FLOW CHART

CORPORATiONS Federal Vl-EWER S FOUNDATiONS Government STATE

Corp. For PTV Public Stations Broadcasting

Local Program Program Acquisitions Production From PBS & Regional Acquisition Networks

Corporations Foundations Others PBS PROGRAM SUPPLIER CERTIFICATE OF SERVICE

I hereby certify that I have this day served the foregoing PTV exhibits by hand delivery upon the parties designated with an asterisk, and by first-class mail upon all other parties listed below:

John H. Midlen, Jr. George R. Grange, IZ John H. Midlen, Jr., Chartered Richard M. Campanelli 3238 Prospect Street, N.W. Gammon 6 Grange, P.C. Washington, D.C. 20007-3215 Seventh Floor 8280 Greensboro Drive McLean, VA 22102-3807

* Clifford M. Harrington * Dennis Lane Barry H. Gottfried Morrison & Hecker Fisher, Wayland, Cooper, Suite 800 Leader K Zaragoza, LLP 1150 18th Street, N.W. Suite 400 Washington, D.C. 20036-3815 2001 Pennsylvania Avenue, N.W. Washington, D.C. 20006-1851

* John X. Stewart, Jr. * L. Kendall Satterfield Crowell & Moring Finkelstein, Thompson. & 1001 Pennsylvania Avenue, N.W. Loughran Washington, D.C. 20004-2595 2828 Pennsylvania Avenue, N.W. Washington, D.C. 20007

Erica Redler * Robert Alan Garrett Canadian Broadcasting Corp. Arnold & Porter P.O. Box 8478 555 Twelfth Street, N.W. Ottawa, Ontario K1G 3J5 Washington, D.C. 20004-1202 Thomas J. Ostertag Philip R. Hochberg General Counsel Baraff, Koerner, Olender & Office of the Commission of Hochberg Baseball Suite 640 350 Park Avenue -- 17th Floor Three Bethesda Metro Center New York, N.Y. 10022 Bethesda, MD 20814-5330

Judith Jurin Semo Paula A. Jameson Squire, Sanders & Dempsey Gary P. Poon 1201 Pennsylvania Avenue, N.W. Public Broadcasting Service Washington, D.C. 20004 1320 Braddock Place Alexandria, Virginia 22314

Arnold P. Lutzker Benjamin F. P. Ivins Cary A. Eure National Association of Keith A. Barritt Broadcasters Fish & Richardson, P.C. 1771 N Street, N.W. 601 13th Street, N.W. Washington, D.C. 20036 Washington, D.C. 20005

Michele J. WodHs, Esq.

January 17, 1996