IPBS Underwriting Presentation 090413

IPBS Underwriting Presentation

Phil Meyer

WTIU Station Manager

09/04/13

“Advertising is based on one thing, happiness. And you know what happiness is? Happiness is the smell of a new car. It’s freedom from fear. It’s a billboard on the side of the road that screams reassurance that whatever you are doing is okay. You are okay.”

-- Don Draper (Mad Men)

“Just the facts.”

-- Joe Friday (Dragnet)

What Is The Purpose Of Underwriting?

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The FCC communicates its rules through:

Rulemaking

Policy statements

Enforcement decisions (fines range from $2,000 to $20,000)

From the FCC’s standpoint, the purpose served by underwriting credits is to identify the funder in the interests of full disclosure, not to promote the funder or its products and services.

Is Our Audience Attractive To Advertisers?

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Size of audience for most recent season finales:

Downton Abbey

8.2 million

Game Of Thrones

5.4 million

(We’re #2!)

More Viewers And Listeners

Active And Engaged Citizens

Less Clutter

Unduplicated Reach

* PBS Is Most Trusted Institution

* PBS Audience Reflects Census

What Copy Is Acceptable To The FCC?

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In case you were wondering:

Section 399B of the Communications Act of 1934, as amended (47 U.S.C. § 399b) and Sections 73.503 and 73.621 of the Commission's rules, (47 C.F.R. §§73.503 and 73.621) govern underwriting issues.

www.fcc.gov/eb/broadcast/enhund.html.

Value neutral descriptions of a product line or service;

Brand / trade names and product or service listings;

Visual descriptions of specific products;

Location information, including telephone numbersand Web addresses;

Logograms or slogans which identify and do not promote.

“I know it when I see it.”

-- Supreme Court Justice Potter Stewart to describe his threshold test for obscenity in Jacobellis v. Ohio (1964)

What Copy Is NOT Acceptable To The FCC?

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Some of the words and phrases that the FCC has found unacceptably promotional include:

Efficient Economical Dependable Dedicated Prompt Fair Price Reliable Excellent Leading Luxury

Calls to action “Come in today and take a test drive”;

Superlative description or qualitative claim aboutthe company, its products, or its services“The best service in the industry” or “The mostintelligent car ever built”;

Direct comparison with other companies, theirproducts or services;

What Copy Is NOT Acceptable To The FCC?

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But wait, there are more words and phrases that the FCC has found unacceptably promotional:

Quick and clear Very accommodating Delightfully honest Quality Number One

Price or value information “7.7% interest rate available now” and “affordable,” “discount,” or “free”;

Inducements to buy, sell, rent, or lease “Six months free service when you buy” or“lifetime guarantee”;

Endorsements “recommended by 4 out of 5…”;

Demonstrations of consumer satisfaction.

The 3-Part Test

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Fundamental Principles

Journalistic Integrity

Noncommercial Nature

Diversity Of Funding

1. Editorial Control Test: Has the funder exercised editorial control? Could it?

2. Perception Test: Might the public perceive that the underwriter has exercised editorial control?

3. Commercialism Test: Might the public conclude the program is on public television principally because it promotes the underwriter’s products, services or other business interests?

Rationale I Will NOT Accept

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Fundamental Principles

Journalistic Integrity

Noncommercial Nature

Diversity Of Funding

“Radio already approved it.”

“This is for a big client.”

“This matches all their other advertising.”

“The client will only make the buy if this is whattheir copy says.”

“No one will file an FCC complaint.”

http://cincinnati.com/blogs/tv/2013/04/23/fcc-fines-wobo-fm-3000/

It Depends (And Other Restrictions)

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Fundamental Principles

Journalistic Integrity

Noncommercial Nature

Diversity Of Funding

Religion, politics and other controversial issues.

Appearance of linkage between a corporatesupporter and editorial control of program.

Commercial and non-commercial sponsors aretreated equally.

No third-party support of an organization.

It Depends (And Other Restrictions)

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Fundamental Principles

Journalistic Integrity

Noncommercial Nature

Diversity Of Funding

Religious entities allowed, provided they don’t advocate a theology or beliefs.

WTIU prohibits credits regarding or advocating aposition on public issues.

Prohibited funders include (but are not limited to):tobacco products and outlets, makers of distilledspirits, political parties, political lobbyingorganizations, non-sanctioned gamblingactivities, firearms and/or weapons andammunition manufacturers, and organizations

It Depends (And Other Restrictions)

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Fundamental Principles

Journalistic Integrity

Noncommercial Nature

Diversity Of Funding

We get final approval.

We may consult legal counsel.

We may reject an underwriting spot.

We decide the frequency and timing of the spots.

Questions?