FCC Penalty Demonstrates Spanish-Language TV Must Abide by Same Rules as Other Networks

According to a major front page story in Saturday's New York Times by media writer Stephen Labaton, Spanish-language television leader Univision is about to get hit with "the largest fine the Federal Communications Commission has ever imposed against any company."

And it appears Univision is ready, and in fact quite eager, to settle the issue and move on. The NYT piece, available through a permalink [here], is quite thorough and places the entire issue in the following context:

"Once the full commission approves it, as expected, Univision will be able to complete its $12 billion sale to a consortium of private equity firms."

So, while this is a major penalty and sets a historic precedent for the FCC, $24 million is a small amount to concede in order to ensure the government's support of a speedy sale of the company.

Some background... The Los Angeles Times' Jim Puzzanghera reports on the issue in Sunday's paper [here]. The Times' reports:

"Los Angeles-based Univision, the country's largest Spanish-language broadcaster, has agreed to the fine to settle complaints against 24 stations over a 116-week period from 2004 to 2006 for airing the children-focused soap operas, known as telenovelas, to fulfill the requirement for at least three hours of educational programming a week, according to a commission official who spoke on condition of anonymity because only the FCC staff, not the full commission, had approved the settlement."

The Times report from Saturday quoted Rep. Ed Markey:

“As the prime House author of the Children’s Television Act, I am pleased the commission is pursuing serious and vigorous enforcement of violations,” said Representative Edward J. Markey, the Massachusetts Democrat who heads the House subcommittee on telecommunications and the Internet. “This is a particularly egregious case and the level of the proposed fine reflects it. Rather than giving kids programming that is educationally nourishing, Univision elected to give them the Spanish-language equivalent of a soap opera.”

And the Times also reported that a politically active church filed the original complaint that led to the penalty:

"The case dates to the summer of 2005, when the United Church of Christ raised concerns about Univision’s programming lineup, complaining that it was failing to provide adequate children’s programs. The network claimed it was meeting its obligation by repeatedly rebroadcasting the same episodes of the telenovela. The commission’s staff found that 24 stations had violated the programming guidelines over a two-year period."

Finally, the Times identified the research of one of my academic colleagues Professor Federico Subervi of the School of Journalism & Mass Communication at Texas State University (who I've collaborated with on Hispanic voting research):

"In an affidavit accompanying the United Church’s complaint, Federico Subervi, a media consultant to such shows as “Dora the Explorer” and “The Misadventures of Maya and Miguel” said that “Complices” contained many adult plots and complex themes that were hardly suitable for young children."

"As further evidence that the program did not comply with the rules, Mr. Subervi noted that 80 percent of the advertising during the show was geared toward adults."

Here are some possible "lessons" that could come out of this case:

First, Spanish-language media must live under the same rules and regulations as all other media companies in the United States (for many reasons this was not clear before). And yes the FCC has finally realized it can effectively police the format. But for too long the FCC ignored Spanish-language media -- I remember the organization cracking down on indecency in English radio programs and then getting blasted for not doing the same for Spanish radio programs that were doing the same of worse.

But questions remain: Why was it outside research, and not the FCC's own original research and analysis, that convinced the commission there was a problem?

Every semester I teach my ethnic marketing course I share with my students a terrific Newsweek article about all the phrases that are lost in translation and how the FCC was essentially unaware of the the content of many Spanish-language radio programs.

Second, if you're a big media make sure you do good for the country and follow rules that were established to ensure you do. Profits often get in the way of this. And even now, it raises the question: Will a $24 million fine finally force a change at Univision?

The company has not commented publicly yet (best I can tell and according to the L.A. Times today), but might Univision announce, as one friend recommends, that it will invest at least $24 million in the development of new educational children's programming for U.S. Hispanic children? It would certainly be the right thing to do.

Third, if you're a big media company, make sure that you don't anger citizen groups who will file complaints as the UCC did. Groups that have gripes are more likely to spend the time and money on efforts to punish you if you have upset or wronged them in the past. If they work hard enough eventually they will find something that will stick.

ImpreMedia Buys Hoy's New York Edition from Tribune Co.

I just received the e-mail announcing the following development in the Spanish-language media business:

"ImpreMedia, LLC, the nation's leading Spanish-language newspaper and online news publisher, announced today it has agreed to acquire Tribune Company's New York publication, Hoy, and its related weekend publication in New York, Fin de Semana. The pending acquisition does not include the Hoy publications in Los Angeles and Chicago."

Hoy, which was plagued by the Tribune Co's circulation scandal a few years ago, has struggled to compete with the larger El Diario/La Prensa in the New York media market. Plus, ImpreMedia's leadership is driving one of the most energetic campaigns to create a national Hispanic print media empire, and so far it appears to be very successful.

Another rationale: "Based on Scarborough research, the combined readership of Hoy New York and El Diario La Prensa will allow ImpreMedia to deliver nearly twice the number of Spanish-preferred adults as New York's leading Spanish-language TV station, owned by Univision, and nearly three times more than New York's leading Spanish-language radio station."

As long as the quality of reporting and resources for consumers remains strong, perhaps the consolidation of the two papers is a good thing from the perspective of advertisers in the New York media market looking to reach the largest number of consumers.

I'll be on the look-out for reactions to this sale and will share them here on the blog.

Click [here] for the full press release about the sale.

- Adam