GAO 

United States Government Accountability Office

Report to Congressional Requesters

MEDIA 

PROGRAMMING 

Factors Influencing 

the Availability of 

Independent 

Programming in 

Television and 

Programming 

Decisions in Radio 

March 2010 

GAO-10-369 
What GAO Found

United States Government Accountability Office

Why GAO Did This Study

Highlights

Accountability Integrity Reliability

March 2010

MEDIA PROGRAMMING

Factors Influencing the Availability of Independent 

Programming in Television and Programming

Highlights of GAO-10-369, a report to Decisions in Radio 

congressional requesters 

The media industry plays a vital 

role in informing and entertaining 

the public. Media ownership and 

the availability of diverse 

programming have been a longstanding concern of Congress. 

Despite numerous programming 

choices in television and radio 

available to the public, some 

studies have reported that 

independently produced 

programming—that is, 

programming not affiliated with 

broadcast networks or cable 

operators—has decreased through 

the years. This requested report 

discusses (1) the extent to which 

the sources of television 

programming have changed over 

the last decade, (2) the factors 

industry stakeholders identified as 

affecting the availability of 

independent television 

programming, and (3) the factors 

industry stakeholders identified as 

influencing programming decisions 

in radio. To address these issues, 

GAO analyzed data from the 

Federal Communications 

Commission (FCC) and industry on 

sources of broadcast television 

programming in prime time 

(weeknights generally from 8:00 

p.m. to 11:00 p.m.) and companies 

owning cable networks, as well as 

radio format data to determine 

programming variety. GAO also 

reviewed legal, agency, and 

industry documents and 

interviewed industry stakeholders, 

public interest groups, and others. 

GAO provided FCC with a draft of 

this report for comment. In 

response, FCC provided technical 

comments that we incorporated 

where appropriate. 

The sources of broadcast and basic cable television programming have 

changed little in recent years. As a source of programming for prime time 

television, major broadcasters (ABC, CBS, Fox, and NBC) and their affiliated 

studios produced the majority of programming in each of the selected years 

that GAO analyzed. In particular, GAO found major broadcasters produced 

about 76 to 84 percent of prime time programming hours. The remaining 

programming came from independent producers, which are not affiliated with 

the major broadcasters. Since basic cable networks are also a source of 

television programming, GAO analyzed the ownership of those networks as an 

indicator of which entities control the television programming. On the basis of 

GAO analysis of ownership in the 20 most widely distributed basic cable 

networks, major broadcasters and companies affiliated with both major 

broadcasters and cable operators have owned half or more of the top 20 cable 

networks for each year reviewed. Combining ownership in both prime time 

programming and basic cable networks, the major broadcasters have 

controlled a significant share of television programming over the last decade. 

 

Stakeholders primarily cited economic factors as influencing the availability 

of independent television programming. In this regard, producers GAO 

contacted stated that developing and producing broadcast television programs 

is costly and financially risky. And while funds need to be secured early on in 

the development and production process to finance these costs, independent 

producers stressed that it is difficult to obtain financing for production costs. 

For cable television (viewed through a subscription video service), 

representatives of independent cable networks said a new network faces 

considerable uncertainty as to whether it will be distributed by a sufficient 

number of video providers (such as Comcast and DirecTV) to make its 

operations viable. By contrast, cable networks developed by cable operators 

or major broadcasters are able to negotiate distribution of the network with 

video providers as part of an agreement for distribution of an established 

affiliated network. 

For radio, stakeholders cited economic factors, local community interests, 

and consolidation in the radio industry as influences on programming 

decisions. Among both commercial and public radio stations, stakeholders 

said that programming decisions are based on listeners’ interests in a given 

market. GAO found that within two of the three largest local markets 

nationwide, many of the most common local radio formats differ from the 

most common radio formats nationally, indicating that programming 

decisions are affected by local community interests. Over the last 10 years 

there has been consolidation in the radio industry; however, stakeholders’ 

opinions varied about the extent to which consolidation has affected 

programming decisions. While some studies show that consolidation has led 

to homogenized radio playlists in different markets nationwide, GAO’s 

analysis shows diverse formats and preferences are reflected within individual 

local markets. 

View GAO-10-369 or key components.

For more information, contact David J. Wise 

at (202) 512-2834 or wised@gao.gov. 
Page i GAO-10-369 

Contents 

Letter 1

Background 5 

Sources of Broadcast and Cable Television Programming Have 

Changed Little in the Last Decade 12 

Stakeholders Cited Economic Factors, Technical Issues, and Legal 

Conditions as Affecting the Availability of Independent 

Television Programming 18 

Stakeholders Cited Various Factors as Influencing Programming 

Decisions, Including Format and Playlist Selection, in 

Commercial and Public Radio 25 

Agency Comments 35 

Appendix I Objectives, Scope, and Methodology 37 

Appendix II Registered Marks Used in the Report 42 

Appendix III Comments from the Federal Communications 

Commission 44 

Appendix IV GAO Contact and Staff Acknowledgments 46 

Tables 

Table 1: Glossary of Terms 5 

Table 2: Top 10 Radio Station Owners in 2009 and Number of 

Stations Owned in 2007-2009 9 

Table 3: Percentage of Format Overlap among Top 10 Radio 

Station Owners in 2009 34 

Table 4: Experts and Industry Stakeholders We Contacted 38 

Figures 

Figure 1: Television Programming in Broadcast and Subscription 

Video Service 6 

 Media Programming
Figure 2: Annual Broadcasting Program Development Process for 

Scripted Programming 7 

Figure 3: Percentage of Broadcast Prime Time Program Hours 

Provided by Major Broadcaster-Affiliated Studios and 

Independent Producers for 2002, 2005, 2008, and 2009 13 

Figure 4: Top Five Owners of Basic Cable Networks and the 

Number of Cable Networks They Have Owned from 1998 

to 2008 15 

Figure 5: Number of Networks by Ownership Interest in the Top 20 

Most Widely Distributed Basic Cable Networks 16 

Figure 6: Most Popular Formats Nationwide in 2009 28 

Figure 7: Most Popular Formats in Arbitron Market 1 (New York) 

and Arbitron Market 3 (Chicago) in 2009 30 

Figure 8: Top 10 Formats among Commercial and Public Radio 

Stations 32 

Figure 9: Share of Commercial Radio Stations Owned by Top 10 

Radio Station Owners for Selected Years 33 

Abbreviations 

BIAfn Broadcast Investment Analyst Financial Network 

FCC Federal Communications Commission 

MSA Metropolitan Statistical Area 

NPR National Public Radio 

This is a work of the U.S. government and is not subject to copyright protection in the 

United States. The published product may be reproduced and distributed in its entirety 

without further permission from GAO. However, because this work may contain 

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Page ii GAO-10-369 Media Programming
Page 1 GAO-10-369 

 

United States Government Accountability Office

Washington, DC 20548 

 

March 17, 2010 

The Honorable Patrick J. Leahy 

Chairman 

Committee on the Judiciary 

United States Senate 

The Honorable Herbert Kohl 

Chairman 

Subcommittee on Antitrust, Competition Policy, and Consumer Rights 

Committee on the Judiciary 

United States Senate 

The Honorable Byron L. Dorgan 

United States Senate 

The media industry plays an important role in educating and entertaining 

the public. Given this vital role, the ownership of media outlets and the 

availability of diverse programming in the media have been a long-standing 

concern of Congress. One such concern, in particular, is that with 

consolidation in the media industry, the percentage of independently 

produced programming content on media outlets has decreased, thus 

limiting the number of distinct media voices and selection choices for the 

public. 1

 In 1995, the Federal Communications Commission (FCC) 

repealed the Financial-Syndication Rules, thereby allowing broadcast 

networks to have ownership interests in television programs during prime 

time.2

 In addition, the Telecommunications Act of 1996, among other 

things, directed FCC to conduct a rulemaking to evaluate local limits of 

ownership in television and relaxed the ownership limits in local radio 

stations, leading to consolidation in some segments of the media industry.3

For example, prior to the act, the largest radio station owner owned fewer 

1

Independently produced programming has no affiliation with broadcast networks, cable 

operators, or satellite providers. 

2

In re Review of the Syndication and Financial Interest Rules, Sections 73.659 –73.663 

of the Commission’s Rules, F.C.C. 95-382, 10 F.C.C.R. 12165, 10 F.C.C. Rcd. 12165, (1995). 

3

Pub. L. No. 104-104, Title II, § 202, 110 Stat. 110, 111-112, as amended by Pub. L. No. 108-

199, Div. B, Title VI, § 629, 118 Stat. 3, 99-100 (2004) (47 U.S.C. § 303 Note). 

 Media Programming
 

than 65 radio stations, whereas in 2009, the largest radio station owner 

owned over 800 stations, raising concerns about the variety of 

programming available on the radio. Although the current media 

environment provides the public with numerous programming choices in 

television and radio, and over the Internet, some media industry 

stakeholders and studies have reported that independently produced 

programming has decreased through the years as a result of media 

consolidation. 

You requested that we study the state of programming for television and 

radio and the factors influencing programming decisions. As such, we 

reviewed (1) the extent to which the sources of programming in television 

have changed over the last decade, (2) the factors and conditions industry 

stakeholders identified as affecting the availability of independent 

programming in television, and (3) the factors industry stakeholders 

identified as influencing programming decisions in radio. 

To determine the extent to which the sources of programming in television 

have changed during the last decade, we analyzed available data on two 

key sources of television programming—companies producing prime time 

television programs for major broadcast networks4

 and companies with 

basic cable network5

 ownership interests over the last decade. We focused 

on programs broadcasted on prime time because that is the block of time 

on television with generally the most viewers, and in turn these programs 

generate the most advertisement revenue for networks.6

 To determine 

which companies produced prime time broadcast television programming, 

we classified prime time programs into two categories: (1) programs 

 

4

A broadcast network is an organization that may produce and distribute television 

programs, such as drama, comedy, reality programs, and news, to the public through local 

television stations. We refer to the broadcast networks (ABC, CBS, Fox, and NBC) as major 

broadcasters in this report, although the term “broadcasters” can include local television 

stations that are not owned by the major broadcast networks. Throughout this report, we 

refer to media firms by their popularly known acronyms or names, some of which like 

ABC, CBS, Fox, and NBC, are registered trade or service marks. Appendix II contains a list 

of registered marks appearing in this report. 

5

A basic cable network is an organization that may produce television programs, which are 

distributed to the public through a subscription video service. 

6

To analyze the fall prime time schedule in each year, we included programs on the 

schedule Monday through Saturday from 8 p.m. to 11 p.m., and on Sunday from 7 p.m. to 11 

p.m. Because some prime time program schedule changes or cancellations can occur in the 

fall prime time schedule, we used the debut schedule of programs that appeared in 

September of each selected year.

Page 2 GAO-10-369 Media Programming
 

produced by major broadcasters, and (2) programs produced by 

independent production companies not affiliated with a major broadcaster 

(independent producers). Because annual data that track program 

production in these categories are limited, we analyzed the fall prime time 

schedules in 2002, 2005, 2008, and 2009 and classified them in the two 

categories. We selected these years based on available data from FCC’s 

previous study that contained data in the two categories for 2002. We then 

conducted our analysis for every third year and classified the programs 

into the two categories. We also analyzed the 2009 fall prime time schedule 

to provide the most current data available. Since basic cable networks are 

also a source of television programming, we analyzed the ownership of 

those networks as an indicator of which entities control the television 

programming on the networks. Specifically, we used data from SNL Kagan 

to determine the types and the number of companies with ownership 

interests in basic cable networks that were available from 1998 to 2008, 

and the companies that owned the largest number of basic cable networks 

during this period.7

 Of the 20 most widely distributed basic cable 

networks, as measured by the number of subscribers for each year from 

1998 to 2008, we determined how many were affiliated with major 

broadcasters, cable operators, and other media companies and how many 

were unaffiliated independent cable networks. 

To determine the factors industry stakeholders identified as affecting the 

availability of independent programming in television, and as influencing 

programming decisions in radio, we met with FCC officials and 

interviewed or obtained written comments from selected academic 

experts and industry stakeholders and associations, including 

representatives from broadcasting (such as ABC and Fox), cable and 

satellite (such as Comcast and DirecTV), commercial and public radio 

(such as Clear Channel Communications and National Public Radio), 

independent programming groups (such as Future of Music Coalition and 

Independent Film and Television Alliance), and public interest groups 

(such as Consumers Union and Free Press). See appendix I for a complete 

list of academic experts and industry stakeholders we contacted. We 

selected experts and industry stakeholders based on published studies, 

representation of the different segments of the media (i.e., broadcast and 

cable televisions and radio), and recommendations from other industry 

stakeholders; we intended to obtain diverse views and did not weight 

 

7

SNL Kagan Media and Communications is a private research company that collects and 

maintains data on cable networks. 

Page 3 GAO-10-369 Media Programming
 

views of the experts and stakeholders but grouped similar stakeholders 

that represent a segment of the media industry. We also reviewed the 

relevant laws, regulations, and literature, including comments filed by 

stakeholders in various FCC proceedings. Additionally, for radio, we 

focused on radio station formats indicating the types of programming a 

station might play.8

 To conduct this analysis, we obtained historical data 

on the distribution of radio stations by their primary formats nationwide 

and in local markets from 1999 to 2003 and station-level format data from 

the Broadcast Investment Analyst Financial Network’s (BIAfn) Media 

Access Pro Database for commercial and public radio stations from 2004 

to 2009. Although the BIAfn format data provide a general overview of the 

type of programming aired on a given radio station, they do not identify 

specific programming content that is played on the station. We did not 

assess independently produced programming on radio because a national 

playlist database identifying record label affiliation is not available. We 

analyzed the format data to determine programming variety and 

distribution of radio stations by their format nationwide and in two 

selected local markets in 2009.9

 For local markets, we selected New York 

and Chicago because they are similar in size with different demographic 

populations. We also examined 2009 format data for commercial and 

public radio stations and identified the top 10 most popular formats (based 

on the number of stations with the particular formats available) for each 

group nationwide.10 To examine the extent of programming variety among 

radio stations, we selected the top 10 radio station owners—that is, 

owners who own the most radio stations nationwide—and examined 

similarities and differences in formats for each owner’s radio stations in 

the same market. To identify the top 10 radio station owners in 1996-1998, 

2000-2002, 2007, and 2009 we used data from FCC reports and the BIAfn

database. The top 10 radio station ownership data were not available in 

2003-2006 and 2008. We also reviewed studies on radio programming for 

information on radio station playlists and the extent to which playlists for 

 

8

A radio station format refers to the type of programming content on a radio station, such 

as Adult Contemporary, Country, Jazz, News and Information, Sports, Talk, and so forth. 

9

Local markets, also known as Arbitron markets, are geographically contiguous areas in 

which Arbitron Inc. surveys the listenership of radio stations for rating. These markets 

align with the Office of Management and Budget’s Metropolitan Statistical Area (MSA) 

definitions. As of August 2009, there were 300 Arbitron markets. 

10Public radio stations are locally owned and operated stations that receive some or all of 

their funding from listener contributions, the federal government, or other sources. Some 

public radio stations are affiliated with National Public Radio, which is a national radio 

service that provides station programming content. 

Page 4 GAO-10-369 Media Programming
 

each owner’s radio stations overlap in the same market. We determined 

that the television and radio data we obtained were sufficiently reliable for 

the purposes of this report. 

We conducted our work from May 2009 to March 2010 in accordance with 

all sections of GAO’s Quality Assurance Framework that are relevant to 

our objectives. The framework requires that we plan and perform the 

engagement to obtain sufficient and appropriate evidence to meet our 

stated objectives and discuss any limitations in our work. We believe that 

the information and data obtained, and the analysis conducted, provide a 

reasonable basis for any findings and conclusions in this product. 

Appendix I contains a more detailed discussion of our objectives, scope, 

and methodology. 

The media industry has its own terminology, and the following glossary 

provides the definition of terms used throughout this report: Background 

Table 1: Glossary of Terms 

Term Definition 

Basic cable network An organization that may produce television programs, which are 

distributed to the public through a subscription video service. 

Independent cable network An organization that is not affiliated with major broadcasters, cable 

operators, or satellite providers. 

Radio station format Type of programming content on a radio station, such as Adult 

Contemporary, Country, Jazz, News and Information, Sports, Talk, 

and so forth. 

Public radio stations Locally owned and operated stations that receive some or all of their 

funding from listener contributions, the federal government, or other 

sources. Some public radio stations are affiliated with National 

Public Radio, which is a national radio service that provides station 

programming content. 

Multichannel video programming distributors (referred to as 

video providers in this report) 

Entities such as a cable operator, a direct broadcast satellite 

service, or telecommunications company that distributes video 

programming to subscribers for a subscription fee. 

Scripted programming Programs that are developed based on written scripts by writers and 

producers and include different program genres, including comedy 

and drama. 

Nonscripted programming Programs that are not based on written scripts, such as reality 

programs, game shows, and sports. 

Arbitron radio market A geographically contiguous area in which the listenership of radio 

stations is surveyed for ratings by Arbitron Inc. 

Source: GAO based on FCC and industry information. 

Page 5 GAO-10-369 Media Programming
 

Typically, the general public views television programming through 

broadcast or subscription video service. Broadcast television provides free 

over-the-air programming to the public through local television stations. 

By contrast, consumers pay fees for subscription video service to video 

providers, including cable operators, satellite providers, or 

telecommunications companies. Programming for broadcast and 

subscription video service differs, as illustrated in figure 1. 

Figure 1: Television Programming in Broadcast and Subscription Video Service 

Local television stations

• Network-affiliated stations

• Unaffiliated stations

Major broadcast networks

ABC, CBS, FOX, and NBC

Cable networks

Includes basic networks such as ESPN, 

MTV, Discovery, and other networks

Program producers

Studios, producers, writers, and actors

Multichannel video programming distributors

• Cable operators, such as Comcast, Time 

Warner 

• Satellite providers: DirecTV and DISH Network

• Telecommunications companies, such as

AT&T U-verse and Verizon FiOS 

Broadcast television Subscription video service

Consumers

Source: FCC and GAO.

Broadcast television consists mainly of four major broadcast networks 

(ABC, CBS, Fox, and NBC) and several smaller networks, such as the CW 

Television Network, MyNetworkTV, and ION Television. Each of the four 

major broadcasters owns and operates some local television stations; 

other stations can be affiliated with one of the major broadcasters or, as is 

the case with public television, unaffiliated with the major broadcasters.11

The four major broadcasters provide scripted and nonscripted 

programming to the local television stations that is produced either by the 

major broadcasters’ affiliated production companies or by independent 

producers. The development process of scripted programs (i.e., drama and 

 

11Affiliated stations are stations not owned by major broadcasters but grant broadcasters 

use of specific time periods for network programming and advertisement, for 

compensation. 

Page 6 GAO-10-369 Media Programming
 

comedy series) for prime time programming involves steps that allow 

major broadcasters to periodically assess the program as it develops, as 

described in figure 2. 

Figure 2: Annual Broadcasting Program Development Process for Scripted Programming 

Approximately from June 

through November, each 

broadcaster gets “pitched” 

with about 250-400 

drama and 250-400 

comedy program ideas. 

In total, about 2,000 

programming ideas are 

pitched to the 

broadcasters. 

Each broadcaster will 

order between 40 and 

75 comedy and 60 to 80 

drama pilot scripts. Pilot 

scripts are delivered 

from November through 

January. 

Each broadcaster will 

order between 10 and 

15 pilot comedies and 

8-12 pilot dramas. 

Around mid-April, pilots

are delivered to the 

broadcasters. 

Each broadcaster 

will select about 6 or 

7 comedies and 6 or 

7 dramas for series

production for the fall 

season lineup. 

Advertisers select 

the programs during 

which they want to air 

commercials and 

purchase time slots

from the 

broadcasters.

Producers, writers, 

and actors pitch ideas

to major broadcasters

Major broadcasters

order scripts

Major broadcasters

order pilot program

Major broadcasters

select programs after

screening pilots

Major broadcasters present 

fall lineup schedule to 

advertisers in May

Source: GAO analysis of major broadcasters’ data. 

In contrast, the development process for nonscripted programs, such as 

reality programs and game shows, does not involve most of the steps 

shown in figure 2. Scripts and pilots do not need to be developed for 

nonscripted programs, making them less expensive to produce than 

scripted programs. 

For subscription video service, video providers obtain a variety of 

programming from both broadcasters (which can include major networks 

and local stations) and cable networks.12 Video providers must negotiate 

with broadcasters and cable networks to air and distribute their 

programming. Negotiations include the price, terms, and conditions for 

distribution on the video providers’ systems. Video providers have the 

discretion to select which cable networks will be available and, subject to 

negotiation, how they will be packaged and marketed to subscribers.13

 

12Video providers offer subscribers television programming through different service 

tiers—that is, bundles of networks grouped into a package. A basic tier, which is the lowest 

level of cable services, includes the local broadcast stations. Video providers also offer an 

expanded basic service tier, which expands upon the basic service. Additionally, 

subscribers can also purchase digital tiers and premium pay channels, such as HBO and 

Showtime, for an additional fee. 

13Video providers must also pay licensee fees—usually on a per subscriber basis—for the 

rights to carry cable networks and their respective programming. 

Page 7 GAO-10-369 Media Programming
 

According to a recent FCC report, more than 500 cable networks exist, 

including national cable networks (such as CNN, Discovery Channel, 

ESPN, and Fox News) as well as regional cable networks (such as the 

California Channel, Comcast SportsNet Chicago, and the YES Network). 

Cable networks can provide niche programming—that is, programming 

that targets specific demographics. For instance, Lifetime Network offers 

programming that specifically targets women, while MTV Network targets 

programming for the 18-to-34 age demographic. 

The general public receives radio programming through commercial and 

public radio stations. Over the last 5 years, the number of full-power radio 

stations has increased from 13,590 in 2005 to over 14,600 in 2009, with the 

vast majority of these stations being commercial (78 percent, or 11,430 

stations) and the remainder being public (22 percent, or 3,198 stations).14

Following passage of the Telecommunications Act of 1996, concentration 

in radio station ownership increased significantly because of the act’s 

relaxation of national and local multiple radio ownership limits.15 For 

example, in 1996, the two largest radio station owners held fewer than 65 

radio stations each. By contrast, as of 2009, Clear Channel 

Communications Inc. owned over 800 radio stations (down from 1,135 in 

2007), and the second largest group owner, Cumulus Broadcasting LLC, 

owned about 300 radio stations (see table 2).16 In 2009, the top 10 radio 

station owners owned 20 percent of all commercial radio stations. In 

addition, each radio station has a primary programming format 

designation that describes the programming content on that station. For 

example, in 2009, radio station KQSD in Lowry, South Dakota’s, primary 

format was Classical, its secondary format was News, and its tertiary 

format was Jazz. As such, the station primarily plays Classical music, but it 

also provides some news and plays some Jazz. 

 

14The number of stations includes full-service commercial and public stations and excludes 

low-power FM stations and stations with construction permits. 

15Pub. L. No. 104-104, §202(h), 110 Stat. 56. In response to the directive in the 1996 

Telecommunications Act, FCC eliminated the nationwide radio ownership limits rule. 

16In 1999, CapStar Broadcasting and Chancellor Media Corporation merged and were later 

acquired by Clear Channel Communications Inc., which subsequently became the largest 

radio station owner, with over 1,000 radio stations in 2007. In 2006, Clear Channel sold off 

several of its radio stations. 

Page 8 GAO-10-369 Media Programming
 

Table 2: Top 10 Radio Station Owners in 2009 and Number of Stations Owned in 

2007-2009 

Radio station owners 2007 2008 2009

Clear Channel Communications Inc. 1,135 694 847

Cumulus Broadcasting LLC 306 306 305

Educational Media Foundation 180 205 253

Citadel Communications 212 204 205

American Family Association Inc. 126 130 137

CBS Radio 140 140 134

Entercom 120 115 112

Salem Communications Corporation 98 97 93

Saga Communications Inc. 89 91 91

Cox Radio Inc. 79 79 85

Source: GAO analysis of BIAfn data. 

FCC awards licenses to television and radio stations to use the airwaves 

expressly on the condition that licenses serve the public interest and 

licensees are responsive to the needs of its local community. Toward this 

end, FCC has long identified localism, competition, and diversity as its 

three core goals of media policy. Within this framework, FCC has 

considered the public interest best served by promoting free expression of 

diverse views and has promoted program diversity by limiting the number 

of broadcast outlets any one entity may own. As such, individual radio and 

television stations generally have discretion to select programming and to 

determine how best to serve the local community audience. 

Since the mid-1990s, FCC has amended or repealed a number of rules and 

regulations affecting the media industry. In 1995, FCC repealed the 

Financial Interest and Syndication Rules (Fin-Syn rules)17 so that a major 

broadcaster can own programming that it airs during prime time hours, as 

well as own syndication rights to programs purchased from independent 

 

17In re Review of the Syndication and Financial Interest Rules, supra. The Fin-Syn rules 

were adopted in 1970 to limit broadcasters’ control over television programming and 

restricted their ability to own and syndicate programming. 

Page 9 GAO-10-369 Media Programming
 

producers.18 Following the repeal of the Fin-Syn rules, each of the four 

major broadcasters merged with, or acquired an ownership interest in, at 

least one major production studio. For instance, the Walt Disney Company 

acquired ABC and developed ABC Television Studio; CBS became 

affiliated with the studio Paramount Television; and NBC merged with 

Universal Pictures. In addition, News Corporation—which launched the 

Fox Broadcasting Network in 1986—owns several production studios, 

including 20th Century Fox. FCC is required to review media ownership 

rules every 4 years and determine whether those rules are necessary in the 

public interest.19

Although FCC regulates television primarily through ownership rules and 

station licensing, some of its other rules also affect aspects of television 

programming. Some of the key rules that affect programming and carriage 

were adopted in 1992 and are summarized below.20

• Retransmission consent and must carry rules.21 Under these rules, 

every 3 years local commercial television stations (including those owned 

and operated by the major broadcasters) must decide whether to negotiate 

individual retransmission consent agreements with each cable operator in 

its designated market area for compensation in exchange for the cable 

operator’s right to carry the broadcast signal.22 In lieu of negotiation, 

 

18Broadcasters can request syndication rights for programs when they are negotiating the 

financing of programs. If a program remains on the network long enough to accumulate 

about 80 to 100 episodes, then the program can be syndicated, that is, offered and sold to 

local television stations or cable networks for the right to broadcast the programs again 

during non-prime time hours. 

19Telecommunications Act of 1996, § 202, as amended (47 U.S.C. § 303 Note). 

20The Cable Televisions Consumer Protection and Competition Act of 1992, Pub. L. No. 102-

385, 106 Stat 1460, established these rules, placed in Sections 325, 614, and 616 of the 

Communications Act, as amended (47 U.S.C. § 534). FCC then established regulations to 

put into effect those statutory provisions. (In addition, the act established the program 

access rule to prevent a vertically integrated cable operator from discriminating in the 

process, terms, and conditions that it makes programming available to unaffiliated 

distributors or have exclusive access to the programming in which it has an ownership 

interest. Because stakeholders we interviewed did not identify how this rule affects 

independent programming, we did not include a discussion of the issue.) 

21Communications Act of 1934, § 614, as amended (47 U.S.C. § 534); 47 C.F.R. §§ 76.56, 

76.64. 

22Compensation can take the form of cash payments, the video provider’s purchase of 

advertising time on the broadcast station, the broadcaster being given free advertising time 

on the video provider’s system, the video provider’s carriage (and tier placement) of other 

program networks owned by the broadcaster, or some combination of these. 

Page 10 GAO-10-369 Media Programming
 

stations may elect to require each cable operator in its designated market 

area to carry its signal (i.e., must carry), without receiving compensation 

for such carriage. 

• Program carriage rule.23 This rule prevents a video provider from 

requiring a financial interest in programming or coercing a programmer 

(i.e., cable network) to grant exclusive rights as a condition for carriage, 

or from discriminating against an independent cable network in a way that 

unreasonably restrains the ability of the network to compete. 

• Commercial leased access rule.24 Under this rule, cable operators are 

required to set aside a certain number of channels, depending on the size 

of the cable system, that can be leased out to independent cable networks 

for access on its distribution system.25 Congress has required FCC to (1) 

determine the maximum reasonable rates that a cable operator may 

establish for commercial use of the designated channels; (2) establish 

reasonable terms and conditions for such use, including those for billing 

and collections; and (3) establish procedures for the expedited resolution 

of disputes concerning rates or carriage.26

 

23Communications Act of 1934, § 616, as amended (47 U.S.C. § 536); 47 C.F.R. §§ 76.1301, 

76.1302. 

24Communications Act of 1934, § 612, as amended (47 U.S.C. § 532); 47 C.F.R. §§ 

76.970, 76.971. 

25Cable operators with 36 to 54 activated channels must set aside 10 percent, while cable 

operators with 55 to 100 activated channels must set aside 15 percent of those channels not 

otherwise required for use or prohibited from use by federal law or regulation. Cable 

operators with more than 100 activated channels must designate 15 percent of such 

channels for commercial use. 

26 The Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 102-

385, § 9, 106 Stat. 1460 (codified at 47 U.S.C. § 532) 

Page 11 GAO-10-369 Media Programming
 

Sources of Broadcast 

and Cable Television 

Programming Have 

Changed Little in the 

Last Decade 

Major Broadcasters and 

Their Affiliated Studios 

Have Produced the 

Majority of Broadcast 

Prime Time Programming 

Major broadcasters and their affiliated studios have produced the majority 

of broadcast prime time programming in each of the selected years that we 

analyzed. In particular, major broadcaster-affiliated studios produced from 

76 to 84 percent of broadcast prime time programming hours, with the 

remaining hours coming from independent producers. As shown in figure 

3, in most of the years that we reviewed, the share of major broadcasterproduced prime time programs did not change significantly. However in 

2008, the prime time programming from independent producers increased 

slightly compared with such programming in 2005. 

Page 12 GAO-10-369 Media Programming
 

Figure 3: Percentage of Broadcast Prime Time Program Hours Provided by Major 

Broadcaster-Affiliated Studios and Independent Producers for 2002, 2005, 2008, and 

2009 

Percentage of broadcast prime time program hours

Selected years

Source: GAO analysis of data from FCC Media Ownership Working Group Report and International Television

& Video Almanac used by permission from Quigley Publishing Company.

Independent

Major broadcaster-affiliated studios

0

20

40

60

80

100

2002 2005 2008 2009

86

82.2

76.3

82.5

14

17.8

23.7

17.5

Note: For each of the selected years, the independent category includes studios, regardless of their 

size, that were not affiliated with a major broadcaster. For example, Universal Television Studios 

merged with NBC in 2004; therefore it was included in the independent category in 2002 and in the 

broadcaster category in the other selected years. Sony Pictures Television Studio is not affiliated with 

a major broadcaster, so it is included in the independent category for shows it produced in the 

selected years. 

For the fall 2009 broadcast prime time schedule, the top five program 

producers as measured in prime time program hours were studios 

affiliated with ABC, CBS, Fox, NBC, and Warner Bros.27 These producers 

provided approximately 76 total programs, amounting to about 82 percent, 

in the fall prime time schedule. We identified 11 prime time programs that 

fell into the independent producer category for the fall 2009 prime time 

schedule. Of those, Sony Pictures Television Studio produced 3 programs, 

 

27Warner Bros. is affiliated with the CW Television Network. 

Page 13 GAO-10-369 Media Programming
 

and eight other independent producers each supplied a program. Although 

most of the programs produced during the years we reviewed were 

affiliated with major broadcasters, a previous FCC-commissioned study 

indicated that the number and affiliation of prime time programming 

producers has changed significantly since the repeal of the Fin-Syn rules in 

1995.28 The study found that in 1995, the top five program producers 

provided about 54 percent of prime time programming, with three 

producers affiliated with a major broadcaster. 

Numerous Companies 

Own Cable Networks, but 

Major Broadcasters and 

Their Affiliated Companies 

Have Continued to Own 

about Half of the Most 

Widely Distributed Cable 

Networks 

Since basic cable networks are also a source of television programming, 

we analyzed the ownership of those networks as an indicator of which 

entities control the television programming on the networks. On the basis 

of our analysis of ownership interests over the last decade, we found that a 

number of companies have ownership interests in a basic cable network 

(cable network), but a much smaller group of companies have ownership 

interests in 5 or more such networks.29 From 1998 to 2008, 94 companies 

on average have owned an interest in at least 1 cable network. The number 

of companies has declined somewhat over time, however, from a high of 

106 companies in 1998 to a low of 81 companies in 2008.30 Cable network 

owners include owners of major broadcasters, such as News Corporation, 

which owns Fox, and Walt Disney Company, which owns ABC; cable 

operators, such as Comcast and Cablevision; owners of major publications 

and television stations, such as Tribune Company and Hearst Corporation; 

and other media companies, such as Liberty Media Corporation and 

Scripps Networks Interactive. On the basis of our analysis of all the 

companies with cable network ownership interests from 1998 to 2008, we 

found a range of 11 to 13 companies that owned an interest in 5 or more 

networks in at least 1 year. Of these companies, we found a range of 5 to 7 

companies that owned at least 12 cable networks over the decade. As 

shown in figure 4, the number of basic cable networks owned by these top 

5 companies has not changed significantly over the last 11 years. 

 

28Mara Einstein, “Program Diversity and the Program Selection Process on Broadcast 

Network Television,” Federal Communications Commission Media Ownership Working 

Group, Washington, D.C., September 2002. 

29Our analysis included ownership interests in basic cable networks, which are those cable 

networks that often appear in the basic service tier for consumers, and did not include 

other cable networks carried on a digital tier and premium cable networks, such as HBO, 

Showtime, and Starz. 

30During the last decade, the number of basic cable networks has ranged from about 160 to 

180. 

Page 14 GAO-10-369 Media Programming
 

Figure 4: Top Five Owners of Basic Cable Networks and the Number of Cable Networks They Have Owned from 1998 to 2008 

Number of cable networks

Year

Walt Disney Company

Viacom Inc.

News Corporation

Hearst Corporation

Discovery Communications Inc.

Source: GAO analysis of SNL Kagan data.

0

10

20

30

40

50

60

70

80

90

100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

12

16 16 16 16 16 16 16 16 16 16 16

13 13 14 14 14 14 14 14 13 13

17 17 17 14 14 13 13 13 13 13 13

23 23 27

26 26 26 26 26 26 26 26

21 21

21 22 22 22 22 22 20 20 20

Note: The top owners were determined using company names presented in data obtained from SNL 

Kagan. For example, for 2008, the data indicate that NBC Universal had an ownership interest in 7 

basic cable networks and General Electric (GE) had an ownership interest in 11 cable networks. 

Although GE is a parent company of NBC Universal, this analysis does not attribute ownership 

interest in the 7 NBC Universal-owned cable networks to GE. In 2008, the total number of cable 

networks with either a GE or NBC Universal affiliation totaled 18. 

Viacom and Walt Disney Company had ownership interests in the most 

cable networks over the last decade, with each owning more than 20 

networks in each year. None of the top five owners has increased the 

number of cable networks owned since 2001. In 2008, these top five 

companies owned about half of basic cable networks. 

We analyzed ownership of the 20 most widely distributed basic cable 

networks, as measured by the number of subscribers for each year from 

1998 to 2008 (referred to as top 20 cable networks). On the basis of our 

analysis, we found major broadcasters and companies affiliated with both 

major broadcasters and cable operators combined owned 50 percent or 

Page 15 GAO-10-369 Media Programming
 

more of the top 20 networks. As shown in figure 5, the number of major 

broadcaster-owned top 20 cable networks ranged from 6 in 1998 to a high 

of 12 in 2004 before declining to 8 cable networks in 2008. The number of 

top 20 cable networks owned by companies affiliated with both major 

broadcasters and cable operators remained relatively steady during the 

decade at 3 to 4. Cable operators without a broadcast company affiliation 

owned 5 of the top 20 cable networks in 1998, but this number declined 

over time and was zero in 2007 and 2008. 

Figure 5: Number of Networks by Ownership Interest in the Top 20 Most Widely Distributed Basic Cable Networks 

Number of cable networks

Year

Other

Cable operator

Major broadcaster and cable operator

Major broadcaster

Source: GAO analysis of SNL Kagan data.

0

5

10

15

20

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

6

4

4

5

5

5

5

5

7 7

7

7

3

3

3

5

3 2

9

4

4

4

4

4

4 4

4

5

2 22

2

2

2

9 9

9

10 11

8

8

12

Note: We categorized owners that had an ownership interest in a top 20 basic cable network into four 

categories: major broadcaster, both major broadcaster and cable operator (or satellite provider), 

cable operator (or satellite provider), and other. Basic cable network owners that fell into the “other”

category were generally those that could not be identified with the three other categories and included 

independent cable networks. 

In 2008, the last year of our analysis of ownership of the top 20 cable 

networks, we found 8 cable networks that were affiliated with major 

broadcasters. For example, 2 top 20 cable networks, ABC Family Channel 

and Disney Channel, are owned by Disney, a company that also owns the 

Page 16 GAO-10-369 Media Programming
 

ABC broadcast network. Four networks in the top 20 were affiliated with 

both major broadcasters and cable operators. For example, in 2008, CNN, 

TBS, and TNT were owned by Time Warner, a company affiliated with 

cable operator Time Warner Cable, broadcaster CW Television Network, 

and television production studio Warner Bros.31 In addition, 8 networks in 

the top 20 fell in the “other” category for 2008, because they did not appear 

to have a direct affiliation with a major broadcaster, cable operator, or 

satellite provider. Some of the networks in this category, including the 

Food Network and HGTV network, which are owned by Scripps Networks, 

could be identified as independent networks. Other cable networks 

identified as independent networks in other studies, such as the Hallmark 

Channel and the NFL Network, did not fall into the top 20 cable networks 

by subscribership in 2008 or in previous years, so they were not included 

in our analysis. 

Combining ownership in both prime time broadcast programming and 

widely distributed basic cable networks, the major broadcasters have had 

an interest in a significant share of television programming over the last 

decade. Independent producers have been a source for a smaller share of 

prime time broadcast programming. Cable operators without a major 

broadcaster affiliation are not a source of prime time broadcast network 

programming,32 and over the last decade their interest in the top 20 most 

widely distributed basic cable networks has decreased. However, they 

make programming decisions for the cable networks they own and 

determine which cable networks will be carried on their cable distribution 

systems. FCC annually reports on cable network programming variety and 

ownership as part of its video competition report, but the report does not 

assess the extent to which the sources of programming affect variety in 

television and selection choices for the public. 

 

31Because of data availability, our analysis was for the 11 years from 1998 to 2008. In 2009, 

Time Warner announced a spin-off of its Time Warner Cable operations. 

32In December 2009, Comcast, a cable operator, announced that it had signed a definitive 

agreement with GE (owner of NBC) to form a joint programming venture that will be 51 

percent owned by Comcast, 49 percent owned by GE, and managed by Comcast. 

Page 17 GAO-10-369 Media Programming
 

Stakeholders Cited 

Economic Factors, 

Technical Issues, and 

Legal Conditions as 

Affecting the 

Availability of 

Independent 

Television 

Programming 

In Broadcast Television, 

Economic Factors 

Influence the Availability 

of Independent 

Programming 

Industry stakeholders we interviewed stated that the high cost of 

developing, producing, and distributing television programs is a significant 

factor that affects the availability of independent programming in 

broadcast television. According to television broadcast executives and 

representatives of independent producers, developing and producing 

broadcast television programs is costly and financially risky. For example, 

one report estimated that major broadcasters spent about $120 million for 

the 1997-1998 season to develop 49 drama pilots and used 14 in their 

schedules, of which 1 program returned for a second season.33 Moreover, 

according to television broadcast executives, once programming is 

developed, the costs to produce a scripted drama or comedy program 

range from about $21 million to $48 million for 21 program episodes per 

season, with no guarantee that a program will continue to be produced for 

another season.34

Producers need to sell their program ideas to major broadcasters and 

secure financing to cover the costs of developing and producing scripted 

television programs. Because of their large size and access to capital, 

major broadcaster-affiliated studios and other large unaffiliated studios 

 

33Joe Schlosser, “Wolf Says Shows Can Fly without Pilots,” Broadcasting & Cable, July 6, 

1998, 30. 

34In contrast, nonscripted programs are less costly to produce because there are no costs 

associated with ordering scripts and pilots. 

Page 18 GAO-10-369 Media Programming
 

often have the ability to finance development and production costs.35

However, representatives of independent producers stressed that it is 

difficult for them to obtain financing for development and production 

costs, and oftentimes they must secure financing through the major 

broadcaster-affiliated studios. The independent producers said since 

major broadcasters have the ability to finance production costs and make 

programming decisions, it results in seven or eight companies controlling 

a significant portion of the program content on television. 

When selecting programming for prime time, television broadcast 

executives told us that they strive to air programming that will achieve 

high ratings. Advertisers will generally pay more for programs that achieve 

higher ratings, and since major broadcasters rely on advertising revenue, it 

is in their financial interest to select programs that will accrue the high 

level of audience that drives advertising revenue. Television broadcast 

executives and an academic expert we contacted stated that they also 

consider quality for prime time programming, and not necessarily the 

source of programming (i.e., whether the program was produced by an 

independent producer or an affiliated production studio).36 They said 

quality programming will attract the largest share of viewers, which in 

turn, drives advertising revenue. Further, they stated that since advertisers 

spend less overall during times of economic downturn and have multiple 

choices for their advertising dollars (such as on cable television and the 

Internet), it is all the more essential to have quality programming to attract 

the advertisers. 

While television broadcast executives said that it is the quality, not the 

source, of programming that influences the selection of prime time 

programming, major broadcasters are, nevertheless, financially invested in 

the affiliate-produced programs and stand to gain additional profits if the 

affiliated programming makes it to syndication. Consequently, some 

 

35An example of a large unaffiliated studio is Sony Pictures Television Studio, which is not 

affiliated with any broadcasters. Although large unaffiliated studios may have the ability to 

finance production costs, stakeholders said they produced fewer programs than 

broadcaster-affiliated studios because one of the few unaffiliated studios decided to 

primarily produce movies rather than television programs. 

36Although quality is subject to the preferences of the networks that select the programs, 

according to television broadcast executives, general criteria for quality include good ideas, 

mass audience appeal, and whether the content of the program meets the specific needs of 

the network. Literature we reviewed indicated that quality programming depends on talent 

and high production values, both of which can be costly. 

Page 19 GAO-10-369 Media Programming
 

stakeholders said broadcasters might choose their own programming over 

that of independent producers. In particular, according to an academic 

expert and representatives of independent producers, if both major 

broadcaster-affiliated studios and an independent producer offer similar 

genre and programming content to a major broadcaster, the major 

broadcaster will select the program from its affiliated studio over an 

independent producer because of these financial interests. As we 

previously noted, major broadcaster-affiliated studios (5 companies) 

produced 82 percent of prime time programming in the fall 2009 prime 

time schedule. While independent producers most likely would be unable 

to produce and distribute programming without some financial 

arrangements with major broadcasters, they said working under the major 

broadcasters’ control could cause them to lose creative control of the 

program’s content, with the writing of the program being directed by the 

studio bearing the financial risk of production. For example, an 

independent producer cited the replacement of a writer for CBS’s The 

Education of Max Bickford, a drama on the major broadcaster’s 2001 

prime time schedule, when creative differences arose with the major 

broadcaster that owned the program. 

In Cable Television, 

Economic Factors, Finite 

Capacity, and Federal Law 

Affect Network Carriage 

For carriage on cable television, stakeholders cited (1) economic factors, 

(2) finite capacity, and (3) federal law as affecting carriage of new 

independent networks. 

Economic factors. Representatives of independent networks and some 

video providers said economic factors affect carriage of new independent 

networks and their programming. According to video providers, it is 

difficult to determine the cost and value of new independent networks and 

how many subscribers will be gained based on concepts and business 

plans of unproven independent networks. Representatives of independent 

networks we contacted and a study we reviewed indicated that a new 

network usually faces considerable uncertainty as to whether it will be 

distributed by a sufficient number of video providers to make its 

operations viable. Similarly, an academic study indicates that for new 

networks, there is a high cost to sustaining operations while attracting a 

sufficient number of video providers and their subscribers.37 For instance, 

 

37Richard Caves, Karen Guo, Catherine O’Gorman, Matthew S. Rosenberg, and Richard J. 

Wegener, Switching Channels: Organization and Change in TV Broadcasting. 

(Cambridge, Mass.: Harvard University Press, 2005). 

Page 20 GAO-10-369 Media Programming
 

one report stated that cable network Fox News Network had invested over 

$150 million by the time it launched in 1996, but it was expected to lose up 

to $400 million in the next 5 years.38 Representatives of independent 

networks told us that it is difficult to obtain financing for a new cable 

network because commercial banks want a network to secure carriage 

with a major cable company, such as Comcast, before extending financing 

to it. 

By contrast, cable networks developed by cable operators, major 

broadcasters, or other media companies are generally more able to finance 

the development of affiliated networks over new independent networks. 

As our analysis indicated, major broadcasters and their affiliated 

companies owned at least half of the most widely distributed cable 

networks. Basic cable networks that are affiliated with cable operators, 

major broadcasters, or other media companies can negotiate carriage of 

an affiliated cable network as part of an agreement for carriage of an 

established affiliated network. For example, the Walt Disney Company 

owns ESPN, SoapNet, and ABC Family cable networks, along with ABC. 

According to representatives of small cable operators, during the course of 

negotiating for carriage for ESPN, they must also carry ESPN’s spin-off 

cable networks, including ESPN2 and ESPNEWS. In another example, a 

new cable network—Wedding Central—that is affiliated with cable 

operator Cablevision was launched in August 2009 on its distribution 

system. 

Finite capacity. Stakeholders also cited finite capacity in cable system 

infrastructure of some video providers as a technical issue that affects 

selection and availability of independent programming. Representatives of 

video providers we contacted commented that although their overall 

capacity to carry television programs has expanded with advanced 

technology, it remains finite. Because cable operators and 

telecommunications companies offer a wide array of services over their 

broadband networks, they must determine how to allocate their systems’ 

capacity among these multiple services.39 Representatives of cable 

 

38Jim McConville, “Fox Ready to Roll Dice in All-News Gamble,” Broadcasting & Cable, 

October 7, 1996, 52. 

39The array of services that cable operators and telecommunications companies offer 

includes high-speed Internet, telephone, and digital television, as well as traditional analog 

television services. A satellite provider we interviewed stated that competing uses for 

broadband is not an issue, since it cannot offer high-speed Internet and telephones 

services, but it noted that available capacity on its basic service tier is also limited. 

Page 21 GAO-10-369 Media Programming
 

operators and television broadcast executives told us that adding another 

cable network—independently produced or otherwise—when more than 

75 already exist in basic cable, might not be considered the most efficient 

use of cable operators’ resources and capacity. For example, given the 

demand for high-speed Internet services, cable operators told us they want 

to ensure they are using the finite capacity of their systems efficiently to 

be able to meet that demand. 

Despite the constraints on capacity in the cable system infrastructure, 

representatives of video providers and television broadcast executives we 

spoke with noted that alternative distribution platforms, such as online 

video streams, have provided more outlets and opportunities for 

independent programming. For instance, in 2007, two independent 

producers produced a television drama called Quarterlife, which was 

aired on the social network Web site MySpace.com. On the other hand, 

television broadcast executives and representatives of independent 

producers we contacted commented that although the Internet provides 

the opportunity for distribution of independent programming, it does not 

translate to success with regard to attracting the number of viewers that 

television offers. 

Federal law. Stakeholders cited, and studies have reported, that FCC rules 

and regulations implementing certain federal statutes can also influence 

programming decisions. 

• Retransmission issues.40 As we previously mentioned, representatives of 

some video providers stated that the business practice of bundling 

networks—meaning that certain networks are sold as a package with 

broadcast networks rather than being sold individually—which may occur 

during negotiations between broadcasters (which can include major 

networks and local stations) and video providers for retransmission rights. 

Such bundling influences video providers’ carriage decisions and limits 

their ability to select independent programming. In 2004, we reported that 

because the terms of retransmission agreements often include the carriage 

of major broadcaster-owned cable networks, cable operators sometimes 

 

4047 C.F.R. § § 76.56, 76.64. As previously mentioned, the retransmission consent rule 

requires local broadcast stations, some of which are owned and operated by broadcasters, 

who have opted against must carry status, to negotiate individual retransmission consent 

agreements with each cable operator in its service area for compensation in exchange for 

the cable operator’s right to carry the broadcast signal. 

Page 22 GAO-10-369 Media Programming
 

carry cable networks they otherwise might not have carried.41

Representatives of some video providers told us recently that this practice 

also fills their systems’ capacity, leaving less capacity for independent 

cable networks and making it difficult for independent cable networks to 

gain carriage. Television broadcast executives, on the other hand, 

commented that negotiations in lieu of invoking the retransmission rule 

may be necessary for them to be fully compensated for their content. 

As part of its annual report on the status of competition in the delivery of 

video programming, FCC is currently seeking data and analysis on 

implementation of the retransmission consent rules.42 FCC also has a 

separate proceeding specifically looking at revisions to the retransmission 

consent rules and whether it would be appropriate to preclude the 

practice of programmers tying desired programming with undesired 

programming, such as tying carriage of a major broadcaster-owned cable 

network to retransmission conditions for a broadcast signal.43 The 

comment period for the notice closed in December 2007, and FCC officials 

are currently reviewing comments. 

• Program carriage rule.44 Representatives of independent cable networks 

and public interest groups stated that although the program carriage rule 

is needed to promote independent programming, FCC criteria for 

determining discrimination on the basis of affiliation are unclear. They 

told us more precise standards for proving discriminatory or exclusionary 

conduct by cable operators as well as the establishment of a time frame 

for FCC to determine whether the complaining independent cable 

networks have sufficient evidence to proceed to a hearing would make the 

 

4147 C.F.R. § § 76.56, 76.64. As previously mentioned, the retransmission consent rule 

requires local broadcast stations, some of which are owned and operated by broadcasters, 

who have opted against must carry status, to negotiate individual retransmission consent 

agreements with each cable operator in its service area for compensation in exchange for 

the cable operator’s right to carry the broadcast signal. 

42In the Matter of the Annual Assessment of the Status of the Competition in the Market 

for the Delivery of Video Programming, FCC MB Docket No. 07-269. FCC 07-207, 24 

F.C.C.R. 750, 24 FCC Rcd. 750 (January 16, 2009), as supplemented at 24 F.C.C.R. 4401, 24 

F.C.C. Rcd. 4401 (April 9, 2009). 

43In the Matter of the Review of the Commission’s Program Access Rules and 

Examination of Programming Tying Arrangements, FCC MB Docket No. 07-198, Notice 

of Proposed Rulemaking, 22 F.C.C. Rcd. 17791 (October 1, 2007). 

4447 C.F.R. §§ 76.1301, 76.1302. As previously noted, the program carriage rule prevents 

video providers from requiring financial interest in programming as a condition for 

carriage. 

Page 23 GAO-10-369 Media Programming
 

rule more effective. According to independent cable network 

representatives, some independent cable networks have waited over a 

year before FCC determined whether it would conduct a hearing. Because 

the independent cable network is not being carried by the defendant cable 

operator in the interim, some independent cable networks can go out of 

business before a decision is made.45 Representatives of cable operators, 

on the other hand, stated that the rule is not necessary because a cable 

operator’s decision to reject a network could be based on the program 

quality and similarity of content and not on the ownership of a network. 

• Leased access rule.46 In the case of the leased access rule, a public 

interest group official indicated that this rule has not achieved what it was 

intended to do because the prices for leased access were set too high.47

Representatives of cable operators explained that the rule forces cable 

operators to carry programming even if they believe the channel does not 

bring much value to the subscribers. Representatives of cable operators 

cited home shopping channels as an example of programming that relies 

on leased access to gain carriage. The rule also affects the cable operators’ 

ability to carry other programming because the set-aside channels 

consume capacity that could be used for other programming. Cable 

operators also noted that the rule does not apply to satellite providers and 

their systems. 

 

45FCC officials told us that it takes time to adjudicate these cases because program carriage 

disputes are complicated and often result from behavior related to program carriage 

negotiations and require an evaluation of facts and behavior. They further noted that an 

action one party views as prohibited under the statute may be viewed by the other as a 

legitimate business practice. In some instances, additional measures are required to 

perform a proper evaluation. In the event that the staff is unable to resolve a program 

carriage complaint on the basis of the written record, a case may be sent for a hearing 

before an administrative law judge. 

4647 C.F.R. §§ 76.970, 76.971. The commercial leased access rule requires cable operators to 

set aside a certain number of channels that can be leased out to independent cable 

networks for access on its distribution system. 

47FCC reviewed the price rate for leased access and announced its decision to reduce the 

charge in November 2007. In the Matter of Leased Commercial Access, FCC 07-208, 23 

F.C.C.R. 2909, 23 F.C.C. Rcd. 2909 (Feb. 1, 2008). However, FCC’s decision has been 

appealed. 

Page 24 GAO-10-369 Media Programming
 

Stakeholders Cited 

Various Factors as 

Influencing 

Programming 

Decisions, Including 

Format and Playlist 

Selection, in 

Commercial and 

Public Radio 

Commercial Radio 

Stations Largely Make 

Programming Decisions 

Based on Economic 

Factors 

In selecting radio station formats and music playlists, stakeholders we 

interviewed stated that (1) advertisement revenue, (2) cost of 

programming, and (3) market competition are key economic factors that 

influence programming decisions in commercial radio. 

Advertisement revenue. Commercial radio stations are primarily funded 

by advertisement revenue obtained from selling radio time to companies 

seeking to reach specific demographic segments.48 Radio station owners 

and experts told us that when making decisions about format and playlist 

selection, program directors will consider the number of listeners that 

programming will likely attract,49 and, in turn, the advertisement revenue 

they may earn.50 The rates that a station obtains for advertising time 

depend on the station’s ability to attract listeners within the advertisement 

companies’ target demographic segment, the length of the advertisement 

spot, and the size of the market, with larger markets typically receiving 

higher rates than smaller markets. Radio stations compete for listeners 

and advertising revenue with other stations within their respective local 

markets. Consequently, radio stations continuously examine their 

 

48In contrast, public radio stations are primarily funded by contributions received from 

listeners and, in some cases, government funding. 

49By “format” of radio programming, we mean the genre of programming content on a radio 

station, such as Country, Sports, Adult Contemporary, Smooth Jazz, and Rock. 

50Advertisers and radio stations use data published by audience measuring services, such as 

Arbitron Inc., to estimate the number and demographics of listeners within an Arbitron 

radio market. 

Page 25 GAO-10-369 Media Programming
 

programming content to try to attract an audience that is highly desirable 

to advertisers. In particular, a radio station’s format enables it to target 

specific segments of listeners sharing demographics that appeal to 

advertisers. According to a radio industry expert, if the advertising market 

is not interested in reaching the specific target audience of a music format, 

the station will not be able to survive economically because it will not be 

able to gain enough ad revenue. Moreover, radio station owners with 

stations in different markets but of the same format can be more effective 

at attracting revenue from advertisers who want to reach a similar 

demographic in multiple markets. 

Cost of programming. Another economic factor that influences 

programming decisions is the cost to produce radio content. For example, 

radio station owners and experts told us that increased costs and 

decreased advertisement revenue over the past decade have led to an 

increase in the use of voice tracking and syndicated programming.51

According to radio station owners and experts, voice tracking is less 

costly than producing shows for individual markets, and to save 

programming costs, some stations choose to import programming from 

another market during peak listener times rather than hire their own radio 

personalities. In addition, radio industry experts pointed out that 

historically, stations in small markets have generally relied on nationally 

syndicated programming to bring in marketable talent that will allow them 

to compete with other stations in the market. Some stakeholders have 

expressed concern that voice tracking and syndicated programming are 

replacing local programming and therefore the needs and interests of the 

local community are not being reflected by the voice-tracked or 

syndicated programming. However, representatives of radio station 

owners have stated that there is no evidence that voice tracking or 

syndicated programming diminishes localism. For example, one station 

owner pointed out that the value of programming is determined by how 

strongly it resonates with listeners, regardless of where it originates. 

Market competition. Marketplace factors, such as the extent of 

competition in a given market, also affect programming decisions. For 

example, radio station owners stated that when radio station program 

directors are trying to determine a station’s format, they will consider 

 

51Voice tracking occurs when a radio station personality prerecords a program that is then 

aired in multiple markets, including markets other than that of the local radio station. 

Syndicated programming includes programming that is purchased by a radio station (such 

as the Ryan Seacrest Top 40 Program) to air on multiple stations in different markets. 

Page 26 GAO-10-369 Media Programming
 

what formats are currently available in the local market and what formats 

are missing. If there are already stations programmed with a popular 

format in a given market, a radio station will likely look to competitively 

differentiate itself by selecting a format targeted toward a demographic 

that is not currently being served. In doing so, a station may also better 

compete for audiences and advertising revenues with other media. 

Experts and representatives of independent producers told us that radio 

station formats have become more specific in recent years in an attempt to 

enable stations to target a specific demographic and attract advertisers, 

and as a result, radio station formats have changed over time. According to 

radio station owners, the number of radio station formats has increased. 

Representatives of radio station owners conducted a study examining 

radio station formats, and found that from 2001 to 2005, the number of 

radio station formats increased by 7.5 percent. Station owners have 

characterized this increase in the number of formats as an increase in 

variety in radio programming. However, some experts and representatives 

of independent producers have noted that formats with different names 

often have similar playlists, diminishing real variety among those formats. 

For example, one expert noted that it is very difficult to discern 

differences in playlists between radio formats such as Rock and Light 

Rock. 

Local Interests Also Affect 

Programming Decisions in 

Both Commercial and 

Public Radio Stations 

Stakeholders stated that in both commercial and public radio, 

programming decisions such as selection of format and music playlists are 

based on the interests of listeners in a given market. Radio station owners 

in both commercial and public radio reported that program directors will 

conduct research related to the demographics and preferences of the 

listeners in their markets to ensure they are meeting the needs of their 

community. In commercial radio, understanding the interests of listeners 

in a given market is important for the station to attract a large audience 

and, as previously noted, attract advertising revenue. According to radio 

station owners, program directors are expected to be familiar with music 

interests in their markets and make programming decisions that will be 

successful in reaching an audience within their market. A stakeholder also 

noted that even among similarly formatted radio stations, the playlist will 

vary to meet the needs of the local market. For example, the type of 

country music that is popular in Tucson, Arizona, can be very different 

from popular country music in New York City. 

According to our analysis, in 2009, the 10 most common formats across all 

national radio stations included Country, News, Christian, Adult 

Page 27 GAO-10-369 Media Programming
 

Contemporary, Oldies, Sports, Christian Contemporary, Variety, Classic 

Rock, and Talk, as shown in figure 6. 

Figure 6: Most Popular Formats Nationwide in 2009 

Number of stations

Source: GAO analysis of BIAfn data.

Formats

0

500

1,000

1,500

2,000

2,500

Talk

 Classic 

 Rock

Variety

 Christian 

 Contemporary

Sports

Oldies

 Adult 

 Contemporary

Christian

News

Country

2029

1217

792 733 669 624 580 559 526

427

Note: The “Primary Format” field in the BIAfn database was used to identity the most popular formats 

in 2009 and includes data for 14,628 stations, both in and outside of Arbitron-rated markets, and 

commercial and public stations. Stations designated as multicast stations, or having a construction 

permit, are not included in this analysis because multicast stations are available only to listeners who 

have purchased an HD radio and radio stations designated as having construction permits are not yet 

operating. 

We found that within selected individual markets, the top radio formats 

differ from the top radio formats nationally, indicating that programming 

decisions are locally based on the preferences and interests of listeners 

within a given market. For example, the most popular radio station 

formats in New York City (the largest Arbitron market) include 5 formats 

not reflected in the top 10 national radio formats (Alternative, Spanish, 

Contemporary Hit Radio, Ethnic, and Adult Album Alternative). In 

addition, we found 19 percent of all stations in the New York market were 

designated as Ethnic and Spanish formats compared with 7 percent 

nationwide, suggesting that programming decisions among radio stations 

Page 28 GAO-10-369 Media Programming
 

in this market reflect the demographics and interests in the market.52 By 

comparison, in Chicago, Illinois (the third-largest Arbitron market), we 

found that 11 percent of stations in this market were designated as Ethnic 

and Spanish formats. Furthermore, formats that were among the most 

popular in Chicago but not in New York included Christian, Talk, and 

Rock (see fig. 7). 

 

52FCC commissioned 2007 Media Ownership Study 5 (Tasneem Chipty, Station Ownership 

and Programming in Radio, Boston, Mass.: CRA International, June 24, 2007) indicated 

that ethnic formats included Asian, Greek, Hawaiian, International, Japanese, Korean, 

Polish, and Portuguese formats. Spanish formats included Hurban, Mexican, Ranchera, 

Reggaeton, Spanish, Spanish Adult Contemporary, Tejano, and Tropical formats. 

Page 29 GAO-10-369 Media Programming
 

Figure 7: Most Popular Formats in Arbitron Market 1 (New York) and Arbitron Market 3 (Chicago) in 2009 

Format

Number of stations

Source: GAO analysis of BIAfn database. 

0246 8 10 12 14 16 18 20

Rock

Ethnic

Talk

Christian

Adult Contemporary

News

Variety

Sports

Adult Album Alternative

Ethnic

Adult Contemporary

Variety

Contemporary Hit Radio

Spanish

Alternative

News

Chicago

New York 8

6

5

4

4

4

4

3

3

19

13

9

9

7

4

4

Note: Datasets for Arbitron Market 1 (New York) included data for 74 radio stations and 130 radio 

stations for Arbitron Market 3 (Chicago). Both datasets included commercial and public FM and AM 

stations. 

As is the case in commercial radio, representatives of public radio 

reported that programming decisions are locally based on the preferences 

and interests of listeners within a given market; however, they said their 

community service orientation also influences programming decisions. 

Representatives of public radio explained that local public stations select 

their own formats and determine their own audience strategies based on 

their understanding of local community needs, and their role in serving 

those needs. They also said the cost of programming is a final 

Page 30 GAO-10-369 Media Programming
 

consideration for public radio stations after quality- and mission-related 

factors are considered. In addition, representatives of public radio noted 

that public stations generally play music from artists that are signed to 

small, independent labels.53 Independent labels generally seek out a station 

if the station’s format includes music similar to that of the labels, and will 

then establish relationships with such stations. On the basis of our review 

of 2009 format data for commercial and public radio stations, we found 

that the top 10 formats in public radio differ from the top 10 formats in 

commercial radio (see fig. 8). Only two formats (News and Spanish) were 

among the top 10 formats in both commercial and public radio. 

 

53An independent label refers to a record label that is not associated with a major record 

label. 

Page 31 GAO-10-369 Media Programming
 

Figure 8: Top 10 Formats among Commercial and Public Radio Stations 

Public

radio

stations

Commercial

radio

stations

Format

Number of stations

Source: GAO analysis of BIAfn data

0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200

Religious Music

Spanish

Alternative

National Public Radio (NPR)

Religion

News

Classical

Christian Contemporary

Variety

Christian

Classic Hits

Spanish

Hot Adult Contemporary

Talk

Classic Rock

Sports

Oldies

Adult Contemporary

News

Country 2014

962

710

652

622

522

407

367

354

336

443

525

417

255

255

244

147

139

60

18

Note: Data used for analysis include 6,946 commercial stations and 2,503 public stations, both inside 

and outside of Arbitron-rated markets, and FM and AM stations. Stations designated as multicast 

stations, or having a construction permit, are not included in this analysis. 

Page 32 GAO-10-369 Media Programming
 

Opinions Vary on How 

Consolidation in the Radio 

Industry Has Affected 

Programming Decisions 

Stakeholders that we interviewed generally agreed that since 1996, the 

number of stations owned by a single radio station owner has increased; 

however, viewpoints varied about the extent to which consolidation has 

affected programming decisions. Experts and representatives of 

independent producers we contacted stated that the elimination of the 

radio ownership limits in 1996 resulted in an increase in the number of 

stations owned by a single station owner nationally and in local markets. 

Independent producers have reported that the radio station holdings of the 

10 largest radio station owners have increased significantly. On the basis 

of our analysis, we found that the share of commercial stations owned by 

the top 10 station owners did increase, from 4 percent in 1996 to 20 

percent in 2009. However, throughout that period, the top 10 radio station 

owners did not own more than 21 percent of all commercial stations, as 

shown in figure 9. 

Figure 9: Share of Commercial Radio Stations Owned by Top 10 Radio Station 

Owners for Selected Years 

Percentage owned

Fiscal year

Owned by other station owners

Owned by top 10

Source: GAO analysis of FCC and BIAfn data.

0

20

40

60

80

100

1996 1997 1998 2000 2001 2002 2007 2009

 4

 8 11 17 19 21 21 20

 96 92 89 83 81 79 79 80

Note: Because of data limitations, we did not include data for 2003 through 2006 and for 2008. 

In addition, we analyzed data for the top 10 national radio station owners 

in 2009 and found that for most owners (7 out of the 10 owners), stations’ 

formats were differentiated within individual markets. For example, Clear 

Channel—the largest radio station owner—owns multiple radio stations in 

Page 33 GAO-10-369 Media Programming
 

148 Arbitron markets. We found that in most of those markets (72 

percent), Clear Channel programmed its stations with different formats, 

while in 28 percent of those markets some stations were programmed with 

the same format. As illustrated in table 3, among the station owners that 

we reviewed, those with the highest percentage of overlap among radio 

stations in the same market included American Family Association (78 

percent), Cox Radio (56 percent), and Educational Media (56 percent). We 

also found that 75 percent of the markets where format overlap did exist 

included large markets with 30 or more radio stations. 

Table 3: Percentage of Format Overlap among Top 10 Radio Station Owners in 2009 

Radio station owner company 

Number of Arbitron 

markets where 

owner is present

Number of Arbitron markets 

where owner owns multiple 

stations

Percentage of markets where 

owner owns multiple stations with 

the same format

Clear Channel Communications Inc. 153 148 28

Educational Media Foundation 103 34 56

Cumulus Broadcasting LLC 58 54 19

Citadel Communications 48 43 33

American Family Association Inc. 45 9 78

Salem Communications Corporation 35 28 39

CBS Radio 30 28 21

Entercom 24 21 33

Cox Radio Inc. 19 16 56

Saga Communications Inc. 14 13 15

Source: GAO analysis of BIAfn data. 

Radio station owners and representatives of independent producers 

offered different perspectives on how consolidation in the radio industry 

has affected programming decisions nationally and in individual markets. 

On one side, radio station owners and experts told us that to remain 

financially viable, stations have had to eliminate duplicative operating and 

overhead expenses and establish a business model where one program 

director is responsible for programming decisions for multiple stations. 

Some station owners added that program directors overseeing 

programming decisions for stations in multiple markets make decisions 

based on the interests of listeners within the individual markets. Further, 

radio station owners and experts have reported that common ownership 

of multiple stations in a single market benefits the audience in that market, 

Page 34 GAO-10-369 Media Programming
 

as the station owner will choose to diversify formats among its stations to 

attract a large share of the listening audience in the market.54

Another viewpoint expressed by representatives of independent producers 

and experts is that the increased consolidation has changed the stations’ 

decision-making structure, resulting in homogenized programming 

decisions across markets and resulting in large companies using 

centralized methods to make programming decisions. According to this 

view, as jobs are consolidated when one entity owns multiple stations, one 

program director may make similar programming decisions across 

multiple stations in different markets. The independent producers said 

that as a result, playlists of radio stations owned by the same owner will 

overlap. Studies conducted by representatives of independent producers 

and academic experts examined playlists of radio stations owned by the 

same owner across all markets and found overlap in playlists of stations 

with the same format.55 For example, a December 2006 study published by 

the Future of Music Coalition found examples of overlap among playlists 

of individual stations owned by the same company in different markets—

such as an overlap for the playlists of two country stations located in 

different markets (WQRB-FM in Eau Claire, Wisconsin, and WRWD-FM in 

Poughkeepsie, New York). However, the study did not examine overlap 

and differences among playlists of owners’ radio stations in the same 

market. A January 2006 study conducted by an academic expert also 

examined playlist data for each owner’s radio stations and found that the 

playlists of radio stations in different markets overlapped, but that the 

playlists of radio stations in the same market were different. 

We provided a draft of this report to FCC for official review and comment. 

FCC provided technical comments that we incorporated where 

appropriate. FCC’s written comments appear in appendix III. 

Agency Comments 

 

54A 2007 FCC-commissioned study (Tasneem Chipty, Station Ownership and 

Programming in Radio, Boston, Mass.: CRA International, June 24, 2007) and other 

academic studies (Andrew Sweeting, Too Much Rock and Roll? Station Ownership, 

Programming, and Listenership in the Music Radio Industry, Evanston, Ill.: 

Northwestern University, January 15, 2006) found similar results, finding that markets with 

large radio ownership groups offer more format choices within given markets. 

55While our analysis examined format data, these studies looked at playlists. 

Page 35 GAO-10-369 Media Programming
 

We will send copies of this report to the Chairman of the Federal 

Communications Commission and appropriate congressional committees. 

In addition, the report is available at no charge on GAO’s Web site at 

http://www.gao.gov. 

If you or your staff have any questions concerning this report, please 

contact me on (202) 512-2834 or wised@gao.gov. Contact points for our 

Offices of Congressional Relations and Public Affairs may be found on the 

last page of this report. GAO staff who made major contributions to this 

David J. Wise 

report are listed in appendix IV. 

Director, Physical Infrastructure Issues 

Page 36 GAO-10-369 Media Programming
Appendix I: Objectives, Scope, and 

Methodology 

Page 37 GAO-10-369 

Appendix I: Objectives, Scope, and 

Methodology 

To obtain information on the extent to which sources of programming in 

television have changed over last decade, we analyzed available data on two 

major sources of television programming—companies producing prime 

time broadcast television programs and companies with cable channel 

ownership interests during the last decade. We focused on programs 

broadcasted during prime time because that is the block of time on 

television with generally the most viewers and in turn generates the most 

advertisement revenue for networks.1

 To determine which companies 

produced prime time broadcast television programming, we used a previous 

Federal Communications Commission (FCC) study and the International 

Television & Video Almanac to classify prime time programs into two 

categories: (1) programs produced by major broadcasters, and (2) programs 

produced by independent production companies not affiliated with a major 

broadcaster (independent producers). We analyzed the fall prime time 

schedules in 2002, 2005, 2008, and 2009 and classified them in the two 

categories. We selected these years because annual data that tracked 

production information in the two categories were limited; FCC’s previous 

study contained data in the two categories for 2002. We then conducted our 

analysis for every third year (2005 and 2008) using the Almanac’s

production company information for each television program in that year’s 

debut fall broadcast prime time schedule and classified the programs into 

the two categories. We also analyzed the Almanac for the 2009 fall prime 

time schedule to provide the most current data available. Additionally, since 

basic cable networks are also a source of television programming, we 

analyzed the ownership of those networks as an indicator of which entities 

control the television programming on the networks. To determine cable 

network ownership over the last decade, we used data from SNL Kagan, 

which show companies having an ownership interest in each of the basic 

cable networks from 1998 to 2008.2

 We analyzed these data to determine the 

types and the number of companies that have had an ownership interest in 

basic cable networks and the companies that owned the largest number of 

networks during this period. To analyze cable network ownership for the 

most widely distributed networks, we used the 20 basic cable networks with 

the most subscribers (the top 20 networks) from 1998 to 2008 and classified 

 

1

To analyze the fall prime time schedule in each year, we included programs on the 

schedule Monday through Saturday from 8 p.m. to 11 p.m., and on Sunday from 7 p.m. to 11 

p.m. Because some prime time program schedule changes or cancellations can occur in the 

fall prime time schedule, we used the debut schedule of programs that appeared in 

September of each selected year. 

2

Because data that track program production information were limited for programming on 

all cable networks, we looked at the ownership of basic cable networks only. 

 Media Programming
Appendix I: Objectives, Scope, and 

Methodology 

the networks into one of four categories: (1) networks owned by major 

broadcasters, (2) networks owned by video providers, (3) networks owned 

by both major broadcasters and video providers, and (4) networks owned 

by other types of companies. We also examined the top 20 networks in 2008 

for any independent cable networks; that is, any network that did not have 

an affiliation with a major broadcaster or video provider, or an affiliation 

with a major holding company with media interests. 

To determine the factors and conditions that stakeholders identified as 

affecting the availability of independent programming in television and 

factors that influence radio programming decisions, we interviewed or 

obtained written comments from a variety of experts and industry 

stakeholders, including academics, industry representatives, media 

companies, and public interest groups (as shown in table 4) to obtain their 

views on the factors that affect the availability of independent 

programming in television and radio. 

Table 4: Experts and Industry Stakeholders We Contacted 

Stakeholder groups Stakeholder 

Academic experts Mara Einstein, New York University and 

Queens College 

David Waterman, Indiana University 

Philip Napoli, Fordham University 

Andrew Sweeting, Duke University 

Broadcast television and affiliates groups The Walt Disney Company/ABC 

CBS Corporation 

NBC Universal 

News Corporation/Fox 

CBS and NBC Affiliate Association 

Sinclair Broadcast Group 

Young Broadcasting 

Radio station owners group Clear Channel Communications 

Citadel Broadcasting 

American Public Media/Minnesota Public 

Radio 

Public television and radio Association of Public Television Stations 

Public Broadcasting Service 

National Federation of Community 

Broadcasters 

National Public Radio 

Page 38 GAO-10-369 Media Programming
Appendix I: Objectives, Scope, and 

Methodology 

Stakeholder groups Stakeholder 

Video providers Comcast 

DirecTV 

DISH 

AT&T 

Verizon 

Cable networks Discovery Communications 

Industry associations American Cable Association 

National Association of Broadcasters 

National Association of Independent 

Networks 

National Cable and Telecommunications 

Association 

Independent programming groups Independent Film and Television Alliance 

Writers Guild of America, West 

Center for Creative Voices in Media 

American Association of Independent Music 

Future of Music Coalition 

Public interest, nonprofit groups Consumers Union 

Consumer Federation of America 

Media Access Project 

Progress and Freedom Foundation 

Free Press 

Industry Research Group Edison Research 

Source: GAO. 

We selected the experts and stakeholders based on relevant published 

literature, including FCC filings and reports, stakeholders’ recognition and 

affiliation with a segment of the media industry (i.e., cable operators, 

satellite providers, broadcasters, radio station owners, independent radio 

advocacy groups, and so forth), and other stakeholders’ recommendations. 

In our selection of experts and stakeholders, we intended to obtain 

balanced and diverse views; we did not weight experts’ and stakeholders’ 

views but grouped similar stakeholders that represent a segment of the 

media industry. We conducted semistructured interviews and analyzed the 

responses to determine patterns and the extent to which the experts and 

stakeholders agreed on the key factors affecting independent 

programming and radio programming decisions. We also spoke with FCC 

officials and reviewed the relevant laws, regulations, literature, comments 

filed by stakeholders in various FCC proceedings, FCC studies, and FCCsponsored research on television and radio programming. 

Page 39 GAO-10-369 Media Programming
Appendix I: Objectives, Scope, and 

Methodology 

In addition, for radio, we examined radio station formats, indicating the 

genre and types of programming, such as Adult Contemporary, Country, 

News, Sports, and Talk, a station might play. We obtained historical data 

on the distribution of radio stations by their primary formats nationwide 

and in local markets from 1999 to 2003 and format data from the 

Broadcast Investment Analyst Financial Network’s (BIAfn) Media Access 

Pro Database, containing station-level data for commercial and public 

radio stations in the United States from 2004 to 2009. Although the BIAfn

format data provide a general overview of the genre of programming aired 

on a given radio station, they do not identify specific programming content 

that is played on the station. We did not look at independently produced 

programming on radio because national playlist data identifying record 

label affiliation are not available. We analyzed the data to determine 

programming variety and distribution of radio stations by their format 

nationwide and in local markets in 2009. To highlight programming variety 

in local markets, we selected two radio station markets-New York and 

Chicago-and analyzed the format data of radio stations in those markets 

and compared them with national radio station format data in 2009. We 

selected New York and Chicago because these two markets are similar in 

size, (New York is the largest market, and Chicago is the third-largest 

market) but have different demographic populations. In addition, each 

market contains both commercial and public stations, FM and AM 

stations, and contains multiple radio station owners in the market. To 

highlight similarities and differences in programming variety among 

commercial and public stations, we examined 2009 format data for 

commercial and public radio stations and identified the top 10 most 

popular formats (based on the number of stations with the particular 

formats available) for each group nationwide. Finally, to examine 

programming variety for each owner’s radio stations and consolidation in 

the radio industry, we selected the top 10 radio station owners—that is, 

owners who own the most radio stations nationwide—and reviewed 

format data of stations owned by the top 10 owners. To identify the top 10 

radio station owners in 1996-1998, 2000-2002, 2007, and 2009, we used data 

from FCC reports and the BIAfn database. The top 10 radio station 

ownership data were not available in 2003-2006 and 2008. Collectively, in 

2009, the top 10 owners owned a total of 2,262 commercial radio stations, 

or 20 percent of all U.S. commercial radio stations. In addition, the top 10 

owners owned stations that reach a 44 percent share of total Arbitron 

listeners in the United States and collect 52 percent of the radio industry’s 

revenue. For each station owner, we then examined similarities and 

differences in formats among commonly owned radio stations in the same 

market. We also reviewed studies on radio programming for information 

Page 40 GAO-10-369 Media Programming
Appendix I: Objectives, Scope, and 

Methodology 

on radio station playlists and the extent to which playlists for commonly 

owned radio stations overlap in the same market. 

To assess the reliability of the basic cable network data obtained from SNL 

Kagan, and radio data obtained from BIAfn used in our analysis, we (1) 

obtained information from the system owners on their data reliability 

procedures, (2) reviewed systems documentation, (3) reviewed data to 

identify obvious errors in accuracy and completeness, and (4) compared 

the data with information we obtained from other sources, including FCC 

studies. After reviewing the data sources, we determined that the data 

were sufficiently reliable for the purposes for which we have used them in 

this report. 

We conducted our work from May 2009 to March 2010 in accordance with 

all sections of GAO’s Quality Assurance Framework that are relevant to 

our objectives. The framework requires that we plan and perform the 

engagement to obtain sufficient and appropriate evidence to meet our 

stated objectives and discuss any limitations in our work. We believe that 

the information and data obtained, and the analysis conducted, provide a 

reasonable basis for any findings and conclusions in this product. 

Page 41 GAO-10-369 Media Programming
Appendix II: Registered Marks Used in the 

Report 

Page 42 GAO-10-369 

Registered mark Listed owner 

20th Century Fox Twentieth Century Fox Film Corporation 

ABC American Broadcasting Companies Inc. 

ABC Family American Broadcasting Companies Inc. 

Arbitron Arbitron Inc. 

AT&T AT&T Intellectual Property II L.P. 

BIAfn BIA Financial Network Inc 

Cablevision Cablevision Systems Corporation 

CapStar Broadcasting CapStar LLC 

CBS CBS Broadcasting Inc. 

CBS Radio CBS Broadcasting Inc. 

Citadel Communications Company Citadel Communications Company 

Clear Channel Clear Channel Communications Inc. 

CNN Cable News Network LP 

Comcast Comcast Corporation 

Comcast SportsNet Comcast Sports Management Services LLC 

Consumers Union Consumers Union of United States Inc. 

Consumers Federation of America Consumers Federation of America 

Cox Communications Cox Communications Inc. 

Cox Radio Cox Radio Inc. 

DirecTV Directv Inc. 

Discovery Channel Discovery Communications LLC 

DISH Network DISH Network LLC 

Disney Channel Walt Disney Productions Corporation 

Edison Research Edison Media Research Inc. 

Entercom Entertainment Communications Inc. 

ESPN ESPN Inc. 

Fox Twentieth Century Fox Film Corporation 

Fox News Twentieth Century Fox Film Corporation 

GE General Electric Company 

Hallmark Hallmark Licensing Inc. 

HBO Home Box Office Inc. 

HGTV Scripps Networks Inc. 

Independent Film and Television Alliance Independent Film & Television Alliance Corporation 

ION Television ION Media Networks Inc. 

Lifetime Networks Lifetime Entertainment Services LLC 

Appendix II: Registered Marks Used in the 

Report 

 Media Programming
Appendix II: Registered Marks Used in the 

Report 

Registered mark Listed owner 

Media Access Project Media Access Project 

Minnesota Public Radio Minnesota Public Radio 

MTV Networks Viacom International Inc. 

MyNetworkTV MynetworkTV Inc. 

National Public Radio National Public Radio, Inc. 

NBC NBC Universal, Inc. 

News Corporation News Holdings Pty Ltd. 

NFL Network National Football League 

Paramount Television Paramount Pictures Corporation 

Saga Communications Inc Saga Communications Inc. 

Salem Communications Corporations Salem Communications Corporation 

Scripps Networks Scripps Howard Broadcasting Company 

Showtime Showtime Network Inc. 

SNL SNL Financial LC 

SoapNet Disney Enterprises Inc. 

Sony Pictures Sony Corporation 

Starz Starz Entertainment Group LLC 

TBS Superstation Inc. 

The Food Network Television Food Network, G.P. , et Al. 

Time Warner Cable Time Warner Inc. 

Source: Trademark Electronic Search System, United States Patent and Trademark Office. 

Page 43 GAO-10-369 Media Programming
Appendix III: Comments from the Federal Appendix III: Comments from the Federal Communications Commission 

Communications Commission 

Page 44 GAO-10-369 Media Programming
Appendix III: Comments from the Federal 

Communications Commission 

Page 45 GAO-10-369 Media Programming
Appendix IV: 

A

GAO Contact and Staff 

cknowledgments 

Page 46 GAO-10-369 

Appendix IV: GAO Contact and Staff 

Acknowledgments 

David Wise, (202) 512-2834 or Wised@gao.gov 

In addition to the contact above, Sally Moino, Assistant Director; Amy 

Abramowitz; Brad Dubbs; Alana Finley; Bert Japikse; Delwen Jones; 

Jennifer Kim; Maria Mercado; and Andrew Stavisky made key 

contributions to this report. 

 Media Programming

GAO contact 

Acknowledgments 

(542155) 
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