Judges examine public stations' digital ads

By Bill McConnell -- Broadcasting & Cable, 3/13/2003 3:00:00 AM

Federal judges will rule within the next several months on whether public TV stations may carry advertising on a portion of their digital spectrum.

The Federal Appeals Court in Washington, D.C., heard arguments Monday in public advocates' effort to overturn Federal Communications Commission rules allowing public broadcasters to offer commercial services, including advertising, on ancillary signals that would be made possible by the conversion to digital transmission.

Public broadcasters argued that they need revenue-generating opportunities to buy digital equipment.

Individuals following the case wouldn't predict the outcome, but members of the three-judge panel made a point of questioning whether commercial stations should be forced to compete for ad dollars with public outlets that are already subsidized with federal dollars and tax-deductible donations.

The United Church of Christ and Media Access Project are challenging the law on the grounds that that advertising will lead public broadcasters to illegally stray from their nonprofit mission and duty to offer public-interest programming not provided by commercial outlets.

John Lawson, president of the Association of Public Television Stations, said prohibitions on advertising apply only to traditional broadcasts but not to "nonbroadcasting" ancillary services.

The FCC rules governing ancillary services require public stations to devote a "substantial majority" of spectrum to traditional, noncommercial broadcasting.

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