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THE INFORMATION NEEDS of COMMUNITIES the Changing Media Landscape in a Broadband Age

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THE INFORMATION NEEDS of COMMUNITIES the Changing Media Landscape in a Broadband Age THE INFORMATION NEEDS OF COMMUNITIES The changing media landscape in a broadband age Steven Waldman and the Working Group on Information Needs of Communities Federal Communications Commission JULY 2011 www.fcc.gov/infoneedsreport a b THE INFORMATION NEEDS OF COMMUNITIES The changing media landscape in a broadband age Steven Waldman and the Working Group on Information Needs of Communities Federal Communications Commission Table of Contents Executive Summary and Overview 5 A Large Number of Stations Do No News at All Network news PART ONE THE MEDIA LANDscAPE Cable Cable News Networks Section 1. Commercial Media 33 Local Cable News 1. NEwsPAPERS 34 Cable Trends Early History: Cheap Paper, the Telegraph, and the Rise of Satellite the Independent Press Current State The First Technological Challenges: Radio and TV The Rise of the Lucrative Monopoly Newspaper 4. INTERNET 116 The Next Technological Challenge: The Internet How the Internet Has Improved Journalism Was the Decline of Newspapers Inevitable? More Diversity and Choice Hamsterization Greater Depth The Price of Newspaper Cuts More Diversity in Commentary and Analysis Going Forward Enabling Citizen Engagement Speed and Ease 2. RADIO 58 Expanding Hyperlocal Coverage The Birth of Radio News Serving Highly Specific Interests Deregulation Cheaper Content Distribution The Current State of Radio Cheaper Content Creation Local News Radio Direct Access to Community and Civic News The Rise of News/Talk However, the Internet Has Not Solved Some of The Changing Radio Market Journalism’s Key Problems Abundance of Voices Does Not Necessarily Mean 3. TELEVISION 72 Abundance of Journalism Broadcast Television Disappointing Financial Track Record for Local, Online, Labor-Intensive Accountability Journalism The Changing Economics of Modern Local TV News Why Has the Internet Not Filled the Reporting Gaps Left by The Current State of Local TV News Newspapers There Is More Local TV news The Great Unbundling (Consumer Choice) While The Volume of News Has Risen, Staffs Have Free Riding Shrunk The Great Unbundling (Advertiser Choice) Excellence in Local TV News Downward Pressure on Internet Advertising Rates Local Stations Are Becoming More Creative Online Advertising is Less Dependent on Content A Few Are Trying Innovative Collaborations with Independent Digital Ventures It is Easier to Generate Page Views Without Investing in Journalism Mobile and Local TV Fragmentation Slices the Pie Into Smaller Pieces Investigative Powerhouse Stations Scant Coverage of Important Local Issues 5. MOBIle 134 Less Depth History Despite Notable Exceptions Investigative Reporting Is The Mobile News Audience Declining at Many Stations Different Types of Mobile News Platforms Bleeding Is Still Leading Mobile News Sites vs. Applications “One-man Bands” Are Increasing Accessing News Content via Tablets and e-Readers Advertisers Too Often Dictate Content Through “Pay for Play” Arrangements Local TV News Experiments with Hyperlocal Mobile The Airing of Video News Releases Mobile Radio Many Stations Now Outsource Their News Operations Text and SMS Competing Stations Increasingly Collaborate “MOJO”: Mobile Journalism by Citizens to Save Money Revenue Models and Track Record Some Stations Use Their New Digital Channels for News, Donation Models and Mobile Technology Many Do Not Mobile Industry Finances 2 19. SCHOOLS 218 Section 2. Nonprofit Media 146 Digital Literacy 6. PUBLIC BROADCAsting 150 Media Literacy History News Literacy Business Models Digital and Media Literacy in the States Public Broadcasting’s Mission Education and Culture: A Record of Leadership Section 4. Key Cross-Cutting Issues 224 News and Public Affairs 20. NEws CONSUMPTION 226 Collaboration Consuming More Media Political Pressure and Local News More Americans Are Skipping the News Impact of the Internet and Digital Technology Americans Are Spending More on Media—and the Financial The Problem of Streaming Costs and Digital Distribution Beneficiaries Have Changed Membership Support Polarization Other Challenges Facing Public Broadcasting 21. TYPES OF NEws 230 7. PUBLIC, EDUCATIONAL, AND Hyperlocal GOVERNMENT (PEG) AccEss CHANNELS 170 City and State What PEG Channels Do The Advantages of Incumbency Factors Affecting Quality National News PEG, Local News, Information, and Journalism International News Government Channels 22. THE MEDIA FOOD CHAIN AND THE FUNCTIONS 8. C-SPAN AND STATE PUBLIC AFFAIRS NEtwORKS 176 OF JOURNALISM 242 Lack of Support from Cable Operators Functions of Journalism Lack of Support from Satellite Providers Power Shifts Lack of Support from the Corporation for Public Broadcasting Consequences 9. SATELLITE 180 23. DiVERSITY 248 10. LOW POWER FM (LPFM) 184 Traditional Media News Coverage 11. RELIGIOUS BROADCAsting 186 Minority Journalists and Employment New Media 12. NONPROFIT NEws WEBSITES 188 13. FOUNDATIONS 192 24. PEOPLE WITH DISABILITIES 258 Traditional Media: Progress and Setbacks 14. JOURNALISM SCHOOLS 194 New Media: New Opportunities, New Gaps 15. THE EVOLVING NONPROFIT MEDIA 198 25. HOW BIG IS THE LOCAL REPORTING GAP AND WHO WILL FILL IT? 262 Section 3. Non-Media Players 200 How Big is the Gap? How Fast Will Commercial Media Markets 16. GOVERNMENT TRANSPARENCY 202 Evolve to Fill the Gap? The Three-Stage Open Government Movement Signs That Commercial Markets May Fill Gaps Quickly How Transparency Fosters an Informed Public Signs That Commercial Markets Will Not Fill the Gaps Soon The Current State of Government Transparency The New Relationship Between the For-Profit and Limitations to Transparency Strategies Nonprofit Sectors The New Relationship Between Print, TV, and Radio 17. EmERGENCY INFORMATION 212 The New Relationship Between New Media and Old Social Media 18. LiBRARIES 216 3 PART two THE POLICY AND FCC Rules and Public Broadcasting Business Models Underwriting ReguLAtoRY LANDscAPE Merchandizing 26. BROADCAst RADIO AND TELEVISION 276 Retransmission Fees The Fairness Doctrine Fundraising for Third Parties Disclosure Rules and On-Air Deception Digital Stations The “Public Interest” Standard The Corporation for Public Broadcasting Defining the Public Interest Technology and Infrastructure Funding “Ascertaining” Community Needs Fundraising via New Technologies Radio Deregulation The Problem of Rising Broadband Costs Television Deregulation Structural and Governance Issues Enforcing “Public Interest” Rules: Theory and Practice Station Ownership and Governance Industry Self-Inspection Consolidation Reform Proposals Diversity Taking Stock of the Failure of the Public Interest Obligation Collaboration System The Political Firewall Commercial Radio New Funding Sources and Strategies Campaign Advertising Disclosures Low Power FM Low Power TV 27. CABLE TELEVISION 298 Nonprofit Programming on Satellite and Cable. Must Carry and Retransmission Consent State Public Affairs Networks (SPANs) Leased Access Nonprofit Websites Public, Educational, and Government (PEG) Channels Nonprofit Tax Rules State Public Affairs Networks (SPANs) Advertising Facilitating Donations and Assistance to Nonprofit Entities 28. SATELLITE TELEVISION AND RADIO 302 A New 501(c) Classification? Set Asides Hybrids Local Programming SPANs on Satellite 32. ADVERTISING POLICY 334 Digital Audio Radio Services (Satellite Radio) Government as Advertiser Public Notices 29. THE INTERNET AND MOBILE 304 Other Policies That Might Hurt Advertisers Current Policy Debates Access 33. PRINT 338 Adoption Openness 34. COPYRIGHT & INTELLECTUAL PROPERTY 340 Aggregation, Summarizing and Revenue Sharing Opt-out versus Opt-in Licensing and Regulation of Mobile Services Take-Down Notices FM Chips on Mobile Phones “Hot News” 30. OwnERSHIP 310 FCC Ownership Rules PAR T THREE RecoMMENDATIONS 2010 Quadrennial Review Ownership Diversity 35. REcOMMENDATIONS 345 31. NON PROFIT MEDIA 314 HOW THIS REPORT WAS PUT TOGETHER 362 Public Broadcasting FCC Rules Governing Public TV and Radio nOTES 366 FCC Programming Requirements Religious Broadcasters 4 Executive Summary In most ways today’s media landscape is more vibrant than ever, offering faster and cheaper distribution networks, fewer barriers to entry, and more ways to consume information. Choice abounds. Local TV stations, newspapers and a flood of innovative web start-ups are now using a dazzling array of digital tools to improve the way they gather and disseminate the news—not just nationally or internationally but block-by-block. The digital tools that have helped topple governments abroad are providing Americans powerful new ways to consume, share and even report the news. Yet, in part because of the digital revolution, serious problems have arisen, as well. Most significant among them: in many communities, we now face a shortage of local, professional, accountability reporting. This is likely to lead to the kinds of problems that are, not surprisingly, associated with a lack of accountability—more government waste, more local corruption, less effective schools, and other serious community problems. The independent watchdog function that the Founding Fathers envisioned for journalism—going so far as to call it crucial to a healthy democracy—is in some cases at risk at the local level. As technology offered consumers new choices, it upended traditional news industry business models, resulting in massive job losses—including roughly 13,400 newspaper newsroom positions in just the past four years. This has created gaps in coverage that even the fast-growing digital world has yet to fill. It is difficult to know what positive changes might
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