WPC0 2MB%RK Z3|jTimes New RomanTimes New Roman Bold P6G;P"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""Commission will initiate the rulemaking required by the Act with the issuance of a notice of proposed rulemaking in the next several months.  X-  _3.` ` Section 713(f) requires the Commission to commence an inquiry within six months   after the date of enactment of the 1996 Act "to examine the use of video descriptions of video   programming in order to ensure the accessibility of video programming to persons with visual  X_-  impairments."G_"e yO2 -ԍ47 U.S.C. 613(f).G The Commission must report to Congress on its findings, including an assessment   yof the appropriate methods and schedules for phasing video descriptions into the marketplace,   technical and quality standards for video descriptions, a definition of programming for which   video descriptions would apply, and other technical and legal issues that the Commission deems appropriate.  X -  4.` ` Section 713 is "designed to ensure that video services are accessible to hearing  X -  =impaired and visually impaired individuals."g e yO!-ԍConference Report, H.R. Report 104458 (1996), at 182.g The legislative history of this section states that   =it is Congress' goal "to ensure that all Americans ultimately have access to video services and   -programs particularly as video programming becomes an increasingly important part of the home,  Xy-  school and workplace."ByBe {Ol-ԍId. at 183.B The House Committee recognized that there has been a significant   increase in the amount of video programming that includes closed captioning since the passage  XK-  of the Television Decoder Circuitry Act of 1990 ("TDCA").Ke yO- ԍHouse Report, H.R. Report 104204, Part 1 (1995) at 113. As enacted, Section 713 adopted the House provisions on video accessibility with modifications. Conference Report at 184. Nevertheless, the House Committee   expressed a concern that video programming through all delivery systems should be accessible  X-to persons with disabilities.I, e yO-ԍHouse Report at 113114.I  X- B.` ` Notice of Inquiry  X-  5.` ` On December 1, 1995, prior to the enactment of the 1996 Act, the Commission  X-  adopted the Notice in this proceeding. It sought information consistent with the legislation that   was pending at that time and comment on a wide variety of issues relating to closed captioning   iand video description of video programming. This inquiry was intended to gather the information   needed to assess the current availability, cost and uses of closed captioning and video description.  XP-  MIn the Notice, the Commission asked specific questions regarding the importance of closed"P ,-(-(ZZ"   Lcaptioning to persons with hearing disabilities and of video description to persons with visual   disabilities and sought information on other population groups that could benefit from the   availability of these services. We requested data on the availability of video programming, both  X-  new and previously published, with closed captioning and video description. In the Notice, we   asked questions regarding the availability of suppliers of closed captioning and video description, the costs of including these services and how they are currently funded.  Xa-  6.` ` The Notice also sought comment on the appropriate means of promoting wider use   of closed captioning and video description in programming delivered by broadcast television,   cable television, and other video providers. In particular, we sought comment on the general   form any mandatory closed captioning or video description rules should take, if they are deemed   necessary, including technical standards, quality standards, exemptions for classes of programmers   Zor delivery systems, appropriate timetables for implementing any mandatory requirements and the   ?scope of the Commission's jurisdiction to impose mandatory closed captioning or video description requirements on video service providers and program producers and owners.  X-  _7.` ` Because the 1996 Act adopted the provisions concerning the availability of video   programming with closed captioning and video descriptions which formed the basis of the   Commission's December 1995 inquiry, the Commission decided to use the comments filed in that   .proceeding for the inquiries it is required to conduct pursuant to Sections 713(a) and (f) of the  X8-  <Act. In an Order adopted February 27, 1996, the Commission announced this decision and asked  X#-that commenters direct their comments towards the specific provisions of the statute. #e {O- ԍSee Closed Captioning and Video Description of Video Programming, Order, MM Docket No. 95176,  yOf-FCC9671, 11 FCC Rcd 5783 (1996). The Commission also extended the time for filing comments.    X- II.SUMMARY OF THIS REPORT  X- A.` ` Scope of this Report  X-  8.` ` This report addresses each of the issues the Commission is required to examine   Kunder Section 713 with respect to closed captioning and video description of video programming.   We examine the extent to which programming is currently closed captioned (Section III) and the   <amount of video description of video programming currently provided (Section IV). With respect   Zto closed captioning, the statutory mandate directs the Commission to study the current status of   jthis technology and its uses. Thus, we provide a general description of closed captioning, the   lpopulation groups that can benefit from its availability, the methods and costs of closed   0captioning, the amount of programming now available with captions, current funding of   captioning and a description of the quality and accuracy of today's closed captioning. In this  X -  \report, we do not address issues raised in the Notice regarding proposals for specific rules,   standards and implementation schedules for closed captioning, as they go beyond the scope of   the inquiry requirements of Section 713(a). These matters will be considered in the context of   a subsequent notice of proposed rulemaking that we will issue to consider proposed rules to fulfill"#" ,-(-(ZZe""   the Congressional mandate that the Commission adopt rules to implement closed captioning  X-requirements by August 8, 1997.6 Xe yOb- ԍSection 713(a). Specific requirements the Commission must consider when adopting regulations are   specified in Sections 713(b)(e) and comments directed at those provisions will be considered in the Notice of Proposed Rulemaking.6  X-  9.` ` Section 713(f) focuses the Commission's inquiry on the appropriate methods and   schedules for phasing video description into the marketplace and standards for this technology,   including technical and quality standards for video descriptions. In Section IV we provide a   general discussion of the availability of video description and general information regarding the   population groups that can benefit from its availability, the methods and costs of adding   descriptions to video programming, the amount of programming now available with description   Kand the current funding of this technology. As directed by the statute, we then address methods   and schedules for phasing video description into the marketplace, including appropriate regulatory and technical requirements.  X -  ` 10.` ` This report encompasses all types of available video programming with closed   captioning and video description delivered to consumers through existing distribution technology.   =We report on the availability of broadcast commercial and noncommercial networks, basic and   Kpremium cable networks, syndicated and locally produced broadcast and cable programming with   closed captions and video description. In addition to overtheair broadcast television service and   cable television service, we examine the availability of the delivery of closed captions and video   =descriptions to consumers by other multichannel video programming distributors ("MVPDs").   Among these distributors are directtohome ("DTH") satellite services, including direct broadcast   Lsatellite ("DBS") services and home satellite dishes ("HSD"), wireless cable systems using the   multichannel multipoint distribution service ("MMDS"), instructional television fixed service   ("ITFS") or local multipoint distribution ("LMDS"), satellite master antenna television  X-("SMATV") and local exchange carrier ("LEC") video services. \e {Oq- ԍSee Annual Assessment of the Status of Competition in the Market for the Delivery of Video Programming,  {O;-  wSecond Annual Report, CS Docket No. 9561, FCC 95491, 11 FCC Rcd 2060 (1996) ("1995 Competition Report"). This report provides detailed information regarding all available video distribution technologies.  X- B.` ` Summary of Findings  X- ` `  hh,Vpp    W|< ` ` 1. Closed Captioning  Xe-  XN-  2 11.` ` Captioning of video programming has existed since the early 1970s. Through the   efforts of Congress, government agencies and a variety of private parties, captioned video   programming has grown over the past 25 years so that it is now a common feature associated   with the vast majority of popular prime time broadcast television programming. Congress'"   ,-(-(ZZL"  X-  ipassage of the Americans with Disabilities Act of 1990 ("ADA") e {Oy-ԍPub. L. No. 101336, 2, 104 Stat. 328 (1990) (codified at 42 U.S.C. 12101 et seq.). requiring the closed captioning   of federally funded public service announcements, the Television Decoder Circuitry Act of 1990  X-  \("TDCA") Ze yO-ԍPub. L. No. 101431, 104 Stat. 960 (1990) (codified at 47 U.S.C.  303(u), 330(b)). and the 1996 Act reflect a continuing national commitment to ensuring "that all   Americans ultimately have access to video services and programs particularly as video  X-programming becomes an increasingly important part of the home, school and workplace."Ne yO? -ԍConference Report at 183184.N  Xv-   12.` ` Beneficiaries of Closed Captioning: The principal beneficiaries of closed   >captioning are the approximately 22.4 million persons who are hearing disabled. In 1995, 25   million decoderequipped television sets were sold in the U.S. It is estimated that between 50 and 60 million U.S. homes can currently receive closed captioning.  X -   13.` ` Technology: Closed captioning is distributed on line 21 of the vertical blanking   interval ("VBI") of broadcast and other analog television signals. Commission rules reserve line   21 for this service. Pursuant to the TDCA, since July 1, 1993, all television receivers with screen   sizes 13 inches or larger must be capable of receiving and displaying closed captions. Cable   television systems retransmitting broadcast signals must pass through closed captioning to the   xreceivers of all subscribers. For those whose television receivers are not capable of decoding and   displaying closed captioning, separate decoders may be purchased. Existing technology, however,   can only decode Latin based alphabets and symbols, so captioning of some nonEnglish language   programming (Chinese, Japanese, Russian, Arabic, etc.) is not possible using this system. This   transmission and display system is generally well established and functions effectively. Digital   transmission systems under development are being designed to include closed caption capabilities.  X-   14.` ` Notwithstanding the capabilities of this transmission system, a variety of problems   [can occur in the captioning process. Captioning of prerecorded programming involves adding   xa written transcription or description of the spoken words and sounds which is generally carefully   \prepared and checked for accuracy. In the case of live programming, however, the real time stenographic process of adding the captions increases the number of mistakes.  Xe-  15.` ` In addition, as programming is duplicated or prepared for transmission, improperly   Kadjusted signal processing equipment can delete line 21, introduce errors or result in captions not   Lbeing synchronized with the video portion of the program. Time compression of programming   to fit it into specific time blocks may destroy captions. Finally, interference and poor quality   =reception may impair caption quality, sometimes causing individual letters to appear as square   jwhite blocks. Closed captions may also cover other written information on the screen, such as emergency weather or school closing announcements. " z,-(-(ZZ"Ԍ X-  16.` ` Cost: There is a wide range in the cost of closed captioning that reflects the   method of adding the captions, the quality of those captions and the entity providing the captions.   .Organizations and suppliers that charge the most for their services are reported to provide the   .highest quality and most accurate captioning. For prerecorded programming, the captions are   zdeveloped offline using a script of the actual program. Estimates of the cost of this type of   .captioning range from $800 to $2500 per hour of programming. Captions for live programs can   be created by specially trained stenotypists. Live captioning costs are estimated to be between   $150 and $1200 an hour. Offline captioning is typically more expensive than live captioning   because additional resources are expended to edit and proofread the captions. Another method   of captioning live programming uses computer software that converts a script into closed   ycaptioning. This method, known as electronic newsroom captioning, is virtually cost free once   the equipment and software are purchased at a cost generally estimated to be between $2500 and   $5000. For high budget programming that is distributed nationally and reused many times, such   -as theatrical films that may receive network broadcast, subscription, syndication, cable television   and video tape distribution over a period of years, the costs involved represent only a minor   -portion of the total production expense and revenue flow. For less expensive programming, such   as local cable originations, the cost of captioning could be a significant proportion of total expenditures.  XK-  17.` ` Amount of captioning: There has been significant progress in the delivery of   closed captioning of video programming, but the goal of making video programming through all   -delivery systems accessible to persons with disabilities is not yet realized. Virtually all nationally   ybroadcast prime time television programming and nationally broadcast children's programming,   -news, daytime programming and some sports programming, both commercial and noncommercial,   is captioned. New feature films produced in the U.S. that will be distributed by broadcast   Znetworks, cable networks, syndicators and local stations following their theatrical release are now   captioned at the production stage. Many local stations caption their newscasts, at least the portion   that is scripted. Many of the national satellite cable programming networks distribute   [programming containing closed captions. Cable operators also appear to provide some limited   Ncaptioning of their local and regional programming. Other MVPDs essentially distribute   programming that is produced for broadcast and cable use, and they generally deliver the programming with the existing captions intact.  X -  18.` ` Certain types of programming, however, are unlikely to be captioned, including   nonEnglish language programming, home shopping programming, weather programming that   Lincludes a large amount of visual and graphic information, live sports and music programming.   .Captions are less likely to be included in programming intended to serve smaller or specialized   audience markets. Programming (e.g., sports), which is considered perishable because it may   yonly be aired one time, is less likely to contain captions than programming that can be rerun by the original distributor or redistributed by others (e.g., in the syndication market).  XQ%-  19.` ` Economic Support: There are four principal sources of economic support for   Kclosed captioning. Financial assistance provided by the Department of Education ("DOE") funds   Lrepresents approximately 40% of the cost of all captioned video programming. This funding is"#',-(-(ZZ%"   -available only for programming that reaches the largest audiences national news, public affairs,   children's programming, movies and prime time specials. The remaining support comes from   a combination of directly credited corporate advertising support, charitable and foundation support   and producers and distributors of programming. Public service announcements produced or funded by the Federal government must be captioned, pursuant to Title IV of the ADA.  Xv-  _20.` ` Little information appears to be collected in any systematic fashion about the size   of the audience for closed captioned programming or about the economic demand for captioned   /programming when programming is distributed on a subscription basis. Not all advertisers   caption their own advertisements even when the advertisements appear in conjunction with   programming that is captioned. Some distributors, such as those offering subscription based   services (e.g., HBO, Cinemax), appear to believe that the inclusion of captions is rewarded by   ?the marketplace as they are able to attract additional subscribers. It also is likely that all   programmers and program providers could increase their audience shares if their video   Mprogramming is accessible to the deaf and hard of hearing community and therefore benefit  X -economically through the inclusion of captions.} e {O -ԍSee, e.g., National Association of the Deaf Comments ("NAD") at 2829.}  Wy< ` ` 2. Video Description   XK-  A21.` ` Current Status: Video description includes a narration of the actions taking place   in the video programming that are not reflected in the existing dialogue. It requires the   Zdevelopment of a second script and uses the second audio programming ("SAP") channel. Video   description has not had as far a reach as video captioning. Video description is currently included   only on some programs distributed by the Public Broadcasting Service ("PBS") and a few other   programs distributed by cable systems. Not all broadcast stations or other video distributors are   Kable to transmit the SAP channel and only about half of the nation's homes have a television with   the capability to receive the SAP channel. Unlike line 21 of the vertical blanking interval, which   is reserved only for captioning, there is no dedicated or reserved transmission capacity for video   descriptions. As a consequence, it competes with second language transmissions, including   zSpanish language, for use of the SAP channel. According to the National Center for Health   Statistics, there are approximately 8.6 million individuals who are blind or visually disabled who might benefit from video description.  X -  $22.` ` Because video description is a newer service there is a lack of experience with   developing and assessing the best means for promoting its use. In addition, costs for video   [description are approximately one and a half times the costs associated with closed captioning   similar programming. Video description also receives substantially less government funding,   !which has been a significant factor in promoting the development of closed captioning.   Additional legal and technical issues exist. For example, video description requires the   development of a second script, which raises creativity and copyright issues, and must use the   second audio programming channel and thus must compete for use with other audio services,"h$Z,-(-(ZZU#"   particularly the bilingual audio service. While it is expected that the implementation of digital   technology may be more conducive to video description than the current technology because it   will permit the transmission of multiple audio channels, given the high costs, lack of funding and   <unresolved copyright issues, video description is presently a developing service that faces many obstacles before it can become more accessible.  Xv-   23.` ` Recommendation: In enacting this section of the Act, Congress intended to ensure   Mvideo accessibility to all Americans, including persons with visual disabilities. The general   accessibility of video description is dependent on the resolution of certain technical, legal, funding   Kand cost issues. Any schedule for expanding the use of video description would depend, in part,   on implementation of advanced digital television. Implementation of advanced digital television   can make the distribution of additional audio channels feasible and facilitate the implementation   of video description. In addition to these technical problems, funding remains a fundamental   issue that will effect any schedule for the widespread use of video description since it appears that advertising support alone is unlikely to be sufficient to fund this service, given the costs involved.  X-  `24.` ` Congress has directed the Commission to assess the appropriate methods and   ischedules for phasing video description into the marketplace and to address certain technical and   quality standards issues. The present record on which to assess video description, however, is   limited and the emerging nature of the service renders definitive conclusions difficult. Thus, we   believe that, at this time, the best course is for the Commission to continue to monitor the   deployment of video description and the development of standards for new video technologies   that will afford greater accessibility of video description. Specifically, we will seek additional   information that will permit a better assessment of video description in conjunction with our 1997   report to Congress assessing competition in the video marketplace. This annual report is   submitted in compliance with Section 628(g) of the Act, 47 U.S.C. 548(g). In the context of   lthis report, the Commission will be able to gather and evaluate information regarding the   deployment of SAP channels and digital technology that will enable video providers and   Lprogrammers to include video description. In seeking more information, we intend to focus on   the specific methods and schedules for ensuring that video programming includes descriptions, technical and quality standards and other relevant legal and policy issues.  X - "  ,-(-(ZZ "  X-III.CLOSED CAPTIONING OF VIDEO PROGRAMMING  X-A.` ` Introduction  X-  25.` ` Closed captioning is an assistive technology designed to provide access to   television for persons with hearing disabilities. Captioning is similar to subtitles in that it  Xv-  displays the audio portion of a television signal as printed words on the television screen._|ve {O- ԍ See Implementation of Television Decoder Circuitry Act, Report and Order, GEN Docket No. 911, 6 FCC  {O-  Rcd 2419, 2420 (1991) ("TDCA R&O"), recon. granted in part, Memorandum Opinion and Order, 7 FCC Rcd 2279   K(1992). Further background information concerning closed captioning can be found in DuBow, "The Television   Decoder Circuitry Act TV For All," 64 Temp. L. Rev. 609 (1991), and on the World Wide Web home page of   the Caption Center of the WGBH Educational Foundation ("WGBH"):   ,http://www.wgbh.org/pages/captioncenter/captioncenterhome.html. Copies of materials from the World Wide Web that are cited have been placed in the record of this proceeding._ To   assist viewers with hearing disabilities, captions also identify speakers, sound effects, music and   laughter. Captions were first used in the early 1970s in an "open" format, transmitted with the   video so that they were visible to all viewers. PBS developed closed captioning in the 1970s.   Closed captioning is hidden as encoded data transmitted within the VBI of the television signal,   which, "when decoded, provides a visual depiction of information simultaneously being presented  X -  in the aural channel (captions)."F e {O- zԍSee 47 C.F.R.  73.682(a)(22). In particular, closedcaptioning information may be transmitted on fields   one and two of line 21 of the VBI. Standard television pictures are transmitted at a rate of 30 frames per second,   with two interlaced fields comprising each frame. Each field begins with a VBI of 21 lines, during which the picture   Jscanning beam is turned off (blanked) and is moved from the bottom of the screen to its starting position at the top   of the screen. There are two VBIs transmitted per frame, one in each field. The placement of data within the VBI  {O-  \is described in terms of the particular blanking line used and the field (one or two) in which it occurs. See  {O]-  hPermissible Uses of the Vertical Blanking Interval, Notice of Proposed Rulemaking, MM Docket No. 92305, 8 FCC Rcd 90 n.1 (1992). A viewer wishing to see the closed captioning must use a settop decoder or a television receiver with builtin decoder circuitry.   X -  26.` ` The Commission has long sought to promote closed captioning technology. In the   ?1970s, the Commission granted PBS a number of authorizations to conduct experimental   transmissions using closed captioning, and in 1976, adopted rules that provide that line 21 of the  Xb-  VBI is to be primarily used for the transmission of closed captioning.$be {O- - kԍSee Captioning for the Deaf, Report and Order, Docket No. 20693, 63 FCC 2d 378 (1976) ("Captioning  {O -  R&O"). See also Permissible Uses of the Vertical Blanking Interval, Report and Order, MM Docket No. 92305,   8 FCC Rcd 3613 (permitting enhanced closedcaptioning and other broadcastrelated information services on line 21, field 2 of the VBI). The Commission's rules  XK-  specify technical standards for the reception and display of such captioning.:Ke {O%-ԍId.: The Commission   has also adopted technical standards for the cable carriage of closed captioning data that"4 ,-(-(ZZ "  X-  accompanies programming carried on cable systems.r\e {Oy- ԍ47 C.F.R.  76.606; Cable Television Technical and Operational Requirements, Report and Order, MM  {OC-  Docket No. 91169, 7 FCC Rcd 2021, 2031 (1992), recon. granted in part, Memorandum Opinion and Order, 7 FCC  yO -Rcd 8676 (1992). r In addition, cable operators are required   .to carry the closed captioning data contained in line 21 of the vertical blanking interval as part  X-of their mustcarry obligations.e yOo-ԍ47 U.S.C.  534(b)(3), 535(g)(1) and 47 C.F.R.  76.62 (e) and (f).  X-  C27.` ` To implement the TDCA, the Commission adopted regulations requiring all   television broadcast receivers with screen sizes 13 inches or larger that were manufactured or  Xv-  imported on or after July 1, 1993, to be capable of receiving and displaying closed captions.gv|e {O -ԍ47 C.F.R.  15.119; TDCA R&O, 6 FCC Rcd 2419.g  X_-  LBy mid1994, decoderequipped television sets were in nearly 20 million American homes.F_e yO-ԍVITAC Comments at 12.F In  XH-  M1995, 25 million decoderequipped television sets were sold in the U.S.He yO- ԍElectronics Industries Association, Consumer Electronics Manufacturing Association ("CEMA") Comments  {O_-at 4 citing Electronics Industry of America Market Research Department 1995 figures.  It is estimated that  X1-between 50 and 60 million U.S. homes can currently receive closed captioning.j1 e yO-ԍVITAC Comments at 12; Joe Clark ("Clark") Comments at 6..j  X -  28.` ` In addition to these efforts to promote closed captioning technology, the   {Commission, in 1976, adopted a rule requiring television licensees to transmit emergency  X -  .messages in a visual format.* e {O- ԍ47 C.F.R.  73.1250(h); Emergency Messages Television, Report and Order, Docket No. 20659, 61 FCC  {O-2d 18 (1976), recon. granted in part, Memorandum Opinion and Order, 62 FCC 2d 565 (1977).* In 1990, Congress passed the ADA which requires all federally  X -  funded public service announcements to be closed captioned.  e yOS- ԍ47 U.S.C.  611. The ADA is a comprehensive civil rights statute that prohibits discrimination against   individuals with disabilities in the areas of employment, state and local government services, and in private places  {O-  .of public accommodation such as restaurants, law offices, and movie theaters. See generally Burgdorf, "The   Americans with Disabilities Act: Analysis and Implications of a SecondGeneration Civil Rights Statute," 26 Harv.   C.R.C.L. L. Rev. 413 (1991). In addition to requiring the closed captioning of federally funded public service   announcements, Title IV of the ADA amended the Communications Act of 1934 to require common carriers offering   ;telephone voice transmission services to provide telecommunications relay services for individuals with hearing and  {O"-  speech disabilities. 47 U.S.C.  225. The Commission has adopted regulations implementing this requirement. See 47 C.F.R.  64.60164.608. Aside from these requirements,   however, neither Congress nor the Commission has mandated captioning of television   programming. Instead, Congress and the Commission have relied on the voluntary efforts of   program producers and providers to make television programming accessible to persons with   hearing disabilities. As far back as 1970, the Commission has urged broadcast television"b ,-(-(ZZ"  X-  licensees to undertake these voluntary efforts."e {Oy- ԍThe Use of Telecasts to Inform and Alert Viewers With Impaired Hearing, Public Notice, 26 FCC 2d 917  {OC-  (1970) ("Use Public Notice") (alerting television licensees of the special needs of persons with hearing disabilities,   and urging them to make use of visual as well as oral announcements of emergencies, position newscasters so as to  {O-  hpermit the use of lip reading by viewers and feature visualization of materials in news, weather and sports programs).  {O-  wSee also Captioning R&O, 63 FCC 2d at 389 ("We continue to encourage broadcast licensees . . . to make television  {Oi-  a truly valuable medium for the hearingimpaired."); Renewal Applications Los Angeles, Memorandum Opinion  {O3-  iand Order, 69 FCC 2d 451, 459 (1978) (rejecting renewal challenges based on licensees' failure to provide closed   ,captioning, but "urg[ing] all television licensees to review the options presently available that, within reason, might  {O-  Lprovide some of the benefits of the medium of television for this nation's hearing impaired"), recon. denied,  {O -  Memorandum Opinion and Order, 72 FCC 2d 273 (1979), aff'd sub nom. Community Television of Southern  {OY -California v. Gottfried, 459 U.S. 498 (1983)." We have also "strongly encourage[d] cable  X-operators to carry more closedcaptioned video programming.": e {O - ԍImplementation of 1992 Cable Act Rate Regulation, Report and Order and Further Notice of Proposed  {O -Rulemaking, MM Docket No. 92266, 8 FCC Rcd 5631, 5902 (1993).  X- B .` ` Audiences that Benefit from Closed Captioning  X-  29.` ` Providing persons with disabilities access to the "tremendously powerful television  Xv-  >medium" serves an important public interest.TZv e {O- ԍUse Public Notice, 26 FCC 2d at 918. See also Captioning R&O, 63 FCC 2d at 388 ("[W]e believe it is   of the utmost importance that the hearingimpaired, a significant portion of our population, enjoy the tremendously powerful television medium.").T A recent study attests to the dominant role   =television plays in our society. It reports that nine out of ten Americans watch television on a  XH-  regular basis.He {O- ԍRoper Starch Worldwide, America's Watching: Public Attitudes Toward Television 3 (1995) ("Roper  {O{-Study"). A copy of this study has been placed in the record of this proceeding. U.S. households spend an average of over seven hours every day watching  X1-  television as a means of entertainment and relaxation and as a source of news and information.e 1e {O-ԍId. at 6; Nielsen Media Research (1994).e   Most Americans depend on television to get their news, with 72% of Americans listing it as their  X -primary news source.I! e {OZ-ԍRoper Study at 17.I  X -  30.` ` Closed captioning makes television more accessible to persons with hearing   disabilities. Indeed, the Commission on the Education of the Deaf has stated that "captioning of  X -  TV . . . is the most significant technological development for persons who are deaf."" 8e {O$- !ԍSee H.R. Rep. No. 767, 101st Cong., 2d Sess. 4 (1990) (legislative history of TDCA) citing Towards  {OZ%-Equality: Education of the Deaf, A Report of the Commission on Education of the Deaf (1988). In   enacting the TDCA, Congress found that "closedcaptioned television transmissions have made   it possible for thousands of deaf and hearingimpaired people to gain access to the television"y ",-(-(ZZ"  X-  medium, thus significantly improving the quality of their lives."#e yOy-ԍSection 2(2) of TDCA, Pub. L. 101431, 104 Stat. 960, 47 U.S.C.  303 note. Closed captioning can thus   offer great benefits to Americans with hearing disabilities. In addition, many other people,   <including children and adults learning to read, and people learning English as a second language,  X-can also benefit from watching captioned programming.h$Xe yO-ԍNational Captioning Institute ("NCI") Comments at 910.h  W<` ` 1. Persons with Hearing Disabilities  X_-  31.` ` The National Center for Health Statistics estimates that there are 22.4 million  XH-  persons with hearing disabilities.%He yO - ԍNational Center for Health Statistics, Current Estimates from the National Health Interview Survey, 1994, Series 10, No. 193, at 93, Table 62. According to the National Association of the Deaf ("NAD"),  X1-  80% of these individuals have irreversible and permanent damage to their hearing.&1@e {O"-ԍNAD Comments at 4 citing National Institute on Deafness and Other Communications Disorders. People with  X -  varying degrees of hearing loss comprise 8.6% of the U.S. population.s' e {O-ԍId. at 4 citing National Center for Health Statistics.s Closed captioned   programming provides individuals who are deaf and hard of hearing access to information   regarding national and worldwide current events, local and community affairs and entertainment.   =Without captions, this critical link is often lost, making it more difficult for these individuals to  X -  Zhave basic access to the information and knowledge which the rest of society takes for granted.B( d e {O-ԍId. at 34.B   Many in the deaf and hard of hearing community view the issue of closed captioning in terms   of basic civil rights and rights to equal access that should not be subject to a cost benefit  Xy-analysis.Y)Zy e {O - {ԍSee, e.g., Dick Burkhalter ("Burkhalter") Comments at 2; Self Help for Hard of Hearing People ("Self   Help") Comments at 2; Disability Law Center ("DLC") Comments at 1; David S. Evans ("Evans") Comments at 1; Joan Cassidy ("Cassidy") Comments at 45, 9.Y  XK-  32.` ` Of the persons with hearing disabilities, 3.7 million are children. Approximately  X4-  =15 out of every 1000 people under the age of 18 have some type of hearing disability.C*4e yO!-ԍNAD Comments at 7.C When   -programs are captioned, children who are deaf and hard of hearing, as well as adults, do not have   <to depend on family members to interpret the soundtracks of such programming. Captioning may   thus help facilitate healthy family interaction and provide greater independence to children and   adults with hearing disabilities. Similarly, the ability to enjoy watching or discussing television" *,-(-(ZZ"   ishows with peers may advance greater acceptance of a child or adult with a hearing disability into  X-his or her own community.B+e {Ob-ԍId. at 89.B  X-   33.` ` Senior citizens comprise approximately 29% of the total population. It is well   yestablished that the U.S. population as a whole is aging due to advances in health care and the   aging of the "baby boom" generation, the first members of whom are turning 50 in 1996. As the   yaverage age of the total population increases, the number of elderly people with hearing loss is   expected to grow as well. According to NAD, 415 of every 1000 people over the age of 75 have  XH-  .some type of hearing disability.@,HZe {OS -ԍId. at 5.@ Similarly, it is estimated that currently 22 million adults over   the age of 65 have a hearing loss and that this number will nearly double to over 40 million  X -within the next ten years as the baby boom generation ages.@- e {O-ԍId. at 6.@  W <` ` 2. Children Learning to Read and Persons Learning English  W <` `  as a Second Language   X -  !34.` ` For both children with hearing disabilities and nonhearing disabled children   Klearning to read, captioning can become an educational tool, turning the many hours of television  Xy-  =they watch each week into a learning opportunity.C.y~e {O-ԍId. at 910.C Captioning is useful in exposing children   to patterns of spoken English, such as slang and idioms used in everyday dialogue, that are not  XK-  always found in literature.@/Ke {O -ԍId. at 7.@ Studies have also demonstrated that captions can improve a student's   reading comprehension and spelling, augment vocabulary and word recognition and increase   joverall motivation to read. Not only does captioned television capture students' attention, but  X-its multisensory presentation of information makes learning new words and concepts easier.F0e yOY-ԍWGBH Comments at 45.F  X-  ~"35.` ` Captioning can be useful as a key learning tool for the 30 million Americans for  X-  whom English is a second language ("ESL").D12 e yO"-ԍNAD Comments at 10.D ESL students have two related needs that are  X-  addressed through closed captioned television.D2 e yO%-ԍWGBH Comments at 5.D First, they need to increase basic vocabulary.   Vocabulary researchers agree that the overwhelming percentage of words a person knows are   Lacquired through the contexts in which they are used. Through captioning situational uses of"|R 2,-(-(ZZ"   \words and idioms, and shades of meaning and nuance, can be conveyed visually as well as   verbally. Furthermore, ESL students benefit from seeing an immediate spelling of words just uttered.  W<` `  3. Illiterate Adults  Xv-  ~#36.` ` There are 26 to 27 million illiterate adults in the United States. In addition there   are 72 million adults who lack the basic skills to fill out employment applications or to follow  XH-  written job directions.@3He {O -ԍId. at 4.@ Only 2% to 4% of American adults requiring literacy services are  X1-  reached by the present public and private literacy programs.:41Ze {O< -ԍId.: Captioning can provide   Kopportunities for the illiterate to increase their reading fluency, to participate in the workforce and  X -to enjoy literature, magazines, and newspapers for both knowledge and recreation.G5 e yO-ԍNAD Comments at 1011.G  W <` `  4. Others Who Benefit from Closed Captioning   X -  m$37.` ` Captioning also can help nonhearing disabled viewers understand the audio portion   Lof television programs in noisy locations such as airports, hotel lobbies, waiting rooms, public   exercise facilities, restaurants and bars. Additionally, captioning can help people understand   dialogue in quiet areas where they may need to lower or to turn off the volume on the television  XK-  Zset.A6K|e {Ox-ԍId. at 11.A For any reader, captioning can also be used to improve vocabulary skills and to help clarify   [dialogue that uses difficult vocabulary or dialogue in programming in which the speakers have  X-accents that may be difficult to understand.Q7e {O-ԍId.; WGBH Comments at 45.Q  X- C.` ` Methods of Closed Captioning  W<` `  1. Technical Issues  X-  ~%38.` ` Closed captioning is transmitted on line 21 of the VBI along with the video and   audio portions of a program. The VBI is the unused lines in each field of a television signal,   seen as a thick band when the television picture rolls over usually at the beginning of each field.   =The VBI is an integral part of the television signal that usually includes information to instruct   \the television receiver to prepare to receive the next field and may be used to transmit other   information, including closed captioning. A consumer with a television set that has a builtin" 7,-(-(ZZ"   zclosed captioning feature or a set top decoder can receive closed captioning information by activating this feature.  X-  %&39.` ` The introduction of advanced digital television ("ATV") may affect closed   captioning in terms of both transporting and displaying relatively errorfree closed captioning   data. ATV could greatly improve the overall quality of closed captioning because it may permit   more rapid transmission of data. With regard to ATV technology for transporting closed   captioning data, the Commission has a pending proceeding soliciting public comments concerning   the ability of ATV to include captioning and how the Commission should implement captioning  X1-  requirements for ATV in the event it does not adopt a mandatory ATV standard.a8^1e {O - ԍSee Advanced Television Systems and Their Impact Upon the Existing Broadcast Service, Fifth Further  {Ot -  Notice of Proposed Rule Making, MM Docket No. 87268, FCC 96207, 11 FCC Rcd 6235 (1996) ("Fifth Further  {O> -Notice").  a A draft   standard for advanced television closed captioning ("ATVCC") has been prepared by the   =Television Data Systems Subcommittee ("TDSS") of the Consumer Electronics Manufacturers   xAssociation ("CEMA"). This ATVCC standards setting effort is being carried out in cooperation   with the Grand Alliance (a group of electronics industry representatives) and the Advanced   Television Systems Committee ("ATSC"). Provisions have been made in the ATSC standard to   .transport closed captioning information in the form defined by the TDSS at a fixed data rate of  X-  9600 bitspersecond for closed captioning.h9e {O/-ԍFifth Further Notice, 11 FCC Rcd at 6262  70.h This proposed transporting standard would   significantly increase the data transmission rate from its current 480bitspersecond, thereby  Xb-facilitating faster transmission of both more and better quality closed captioning data.:be yO- ԍTelephone Interview with Amnon Salomon, Director, Systems Development, NCI (July 10, 1996) ("Salomon Interview").  X4-  ~'40.` ` In terms of the quality of closed captioning displayed, ATV could significantly   iincrease user control over such display. Currently, the only control the user has over this display   is whether to activate the closed captioning feature on his television set. The user has virtually   <no ability to customize the closed captioning display to his individual needs or preferences. The   advent of ATV could permit major closed captioning enhancements, such as user selected caption   sizes (i.e., caption "volume control"), a broader selection of type faces, fonts, character sets and   symbols that could convey a wider range of meanings and a wide array of presentation options,  X-  including different colors and backgrounds.;e yO"- ԍCEMA Comments at 89; Telephone Interview with George A. Hanover, Vice President, Engineering, CEMA (July 10, 1996). In addition, ATV, through its enhanced ability to   Ktransport more closed captioning data at a faster rate, could allow a user to select captioning from  Xe-a variety of languages on a menu displayed on the television screen.W<e0 e {OF&-ԍSalomon Interview supra note 58.W "N <,-(-(ZZ"Ԍ X-  (41.` ` Despite its technological potential, ATV would not automatically resolve all   technical or logistical problems with closed captioning. For example, current television receivers,   which are based on analog technology, cannot receive the digitized ATV signal with all of its   kpotential closed captioning enhancements. Therefore, the ATV technology would be of no   practical use until television sets capable of receiving and displaying ATV signals have become  X-  available.D=e yO-ԍCEMA Comments at 9.D It should be noted that such television sets may be available in the near future, even   =though the widespread market penetration of such technology may not occur for many years.   LAdvocates of improved closed captioning emphasize that the initial limited availability of ATV  XH-  should not overshadow its potentially significant enhancement of closed captioning.X>HXe {OQ -ԍSalomon Interview supra note 58. X However,   it should also be noted that, even when digital receivers become available, the procedures for   captioning programming will probably be the same in terms of time, cost and labor intensiveness.   Therefore, the development of digital television technology may not make closed captioning any  X -less expensive or time consuming.i? e yO-ԍNational Broadcasting Company ("NBC") Comments at 1415.i  W < ` ` 2. Types of Closed Captioning   X-  #)42.` ` There are essentially four major types of closed captioning. The first type is "off   line captioning." Under this method, the captioning service gets an advance copy of the script,   Mtape or film before the program is aired. The audio portion of the program, including sound   effects as well as dialogue, is transcribed and added in synchronization with the video content.   After the program is captioned it is sent to a postproduction company or to the program producer   on a computer disk or via modem. The captioning is encoded by the postproduction company  X-  or the producer onto line 21 of the VBI of the master tape to be telecast.b@ze {O1-ԍId. at 2; Capital Cities/ABC Comments at 4.b This method of   xcaptioning entails a labor intensive process to ensure that the captions are placed precisely where   the corresponding audio appears and then locked into the proper position on the program tape.   The captioners must ensure that the captions will appear at precisely the right moment in a  X-  \precise location on the screen.GA e yOg -ԍCBS Comments at 1011.G This type of captioning is used for feature films and many  X-prerecorded entertainment programming, including prime time series and children's programs.ABe {O"-ԍId. at 10.A  Xe-  2*43.` ` A second type of captioning is live encoded captioning. This type of captioning   \is also created offline for prerecorded programming, such as daytime dramas and late night   [entertainment shows in advance of the time that the program is aired. Despite the name of this"7. B,-(-(ZZ"   {form of captioning, these captions are not encoded onto the program tape, but rather are   1transmitted with the program at the time it is aired. These captions are less precisely   ksynchronized than offline captions and are rolled from the bottom of the screen rather than   appearing at precise locations on the screen. Live encoded captioning is often used where there   are only a few hours between taping and airing and the final edits for the program are not  X-  completed until close to air time.DCe {O-ԍId. at 1112.D An example of a program that uses this type of captioning  Xv-  yis the Late Show With David Letterman, where the broadcast occurs only a few hours after the show is taped.  X3-  +44.` ` A third type of captioning is automatic liveencoded captioning. Like live encoded   captions, these offline captions are not encoded onto the prerecorded program prior to airing, but   -are transmitted at the time of airing. However, these captions are encoded onto the program after   the original airing so that the captions will be automatically transmitted when the program is  X -  rebroadcast.DD Ze {O-ԍId. at 1213.D A variant of this type of captioning is called "electronic newsroom captioning" in   which the captions come from the text in the station's news script computers. Only text   transmitted from the scripting computers onto the teleprompters is captioned. Therefore,  X-  unscripted material that does not appear on the teleprompters is not captioned.REe yO/-ԍCapital Cities/ABC Comments at 4.R The electronic newsroom captioning method is commonly used for local broadcast station newscasts.  XM-  ,45.` ` The fourth type of captioning is "real time" or "live captioning." Live   programming, such as news, sports and awards shows are typically "stenocaptioned." This   method of captioning is used for breaking news and other types of live programming that are   Kunscripted. Under this method, the captioner's computer is linked to the telecast operation center   and the captioning material is created for telecast in "real time." A specially trained   "stenocaptioner" transcribes the audio portion of the live program as it airs. Because of the   Ktranscription and computer processing required, real time captioning appears on the screen about  X-three seconds after the corresponding audio content.yF|e yO-ԍNBC Comments at 2; Capital Cities/ABC Comments at 4; CBS Comments at 13.y  X~- "~ F,-(-(ZZ"  X-D.` ` Cost of Closed Captioning  X-  X-  -46.` ` The cost of captioning video programming is a related factor that affects the extent  X-  to which programming is currently accessible with closed captioning.GXe yO4- /ԍThe House provision concerning video accessibility included a specific requirement that the Commission   ialso examine the cost of closed captioning to programs and program providers. The 1996 Act simply directs the Commission to examine "any other related factors" in its inquiry. Conference Report at 182. The cost of closed   captioning depends on the method used and a variety of other factors, including the format, the   length of the program, the required turnaround time, the payment schedule and the volume of  Xv-  Lcaptioning, with discounts often given when contracts include multiple programs and hours.Hve yO - ԍNCI Comments at 5; NAD Comments at 27; Californians for Television Access ("CTA") Comments at 4; VITAC Comments at 10.   Captioning offline of prerecorded programs is typically more expensive than captioning for live  XH-  shows because it requires additional staff for editing and proofreading the captions.YIH@e yO9-ԍNAD Comments at 27; CTA Comments at 45.Y There are  X1-  <more than 100 suppliers of closed captioning services.J1e yO- .ԍWGBH Comments at 20; Media Captioning Services Comments at 5. Lists of suppliers of closed captioning are provided in the NAD Comments, Attachment G, and CTA Comments, Exhibit B. According to several commenters, since   ]1990, the costs of captioning have declined due to increased competition among service  X -  jproviders.K ( e yO- ԍAssociation of LateDeafened Adults ("ALDA") Comments at 5; Schwartz, Woods & Miller Comments at 3; Gerald Dominick ("Dominick") Comments at 4. The larger, more experienced captioning agencies still charge relatively high rates,  X -but are known for their level of quality.LX e yO- ԍNBC Comments at 7. There are six major suppliers of captioning. The National Captioning Institute and   WGBH/The Captioning Center are both notforprofit providers. VITAC, Media Captioning Services, Captions, Inc. and RealTime Captions, Inc. are commercial suppliers. Capital Cities/ABC Comments at 10.  X -  .47.` ` A considerable amount of closed captioning is done under contract with outside  X -  vendors. Estimates of the cost of offline captioning range from around $800 an hourfM e yO-ԍCBS Comments at 11; Capital Cities/ABC Comments at 7.f to $2500  X-  an hour.[N0e yOq!-ԍSchwartz, Woods & Miller Comments at 10. [ In addition, the encoding of the captions onto the program tape entails an additional  Xy-  expense of approximately $200 for a half hour program to $650 for a two hour program.DOye yO#-ԍCBS Comments at 11.D For   example, NBC states that it costs between $900 and $1800 to caption its prime time series, $1800   .for a made for television movie or an episode of a miniseries and $1200 for a Saturday morning"KPO,-(-(ZZ"  X-  =live action children's show.EPe yOy-ԍNBC Comments at 78.E ABC indicates that it pays approximately $790 to $1200 per hour  X-  for offline captioning.RQXe yO-ԍCapital Cities/ABC Comments at 7.R The magnitude of these costs is explained in part by the ratio of time   needed to create the captions to the length of the program, which can be as much as 20 or 30  X-  hours for a one hour program.Re yOT-  ԍWGBH Comments at 1; NBC Comments at 7. CBS estimates this ratio as eight to one. CBS Comments at 11. In addition, the cost of captioning a commercial is estimated at  X-  about $250 per minute.mS@e yO -ԍF&V Channel ("F&V") Comments at 4; CaptionMax Comments at 2.m It also is reported that the offline captioning of music videos costs   ?about $275 to $400 for a short form video or $2500 for a long form video of 60 minutes in  Xv-length.Tve yO- ?ԍRecording Industry of America ("RIAA") Comments at 2. RIAA also states that music videos can be captioned inhouse with the purchase of $20,000 of equipment.  XH-  /48.` ` The estimated cost of contracting for the services needed to caption live  X1-  jprogramming ranges between $300 and $1200 per hour.U1( e {O - zԍSee, e.g., NAD Comments at 2728; A&E Comments at 15; CBS Comments at 28. NBC indicates that it spends $825 to caption its one hour prime time news programs. NBC Comments at 7. For example, the National Captioning   {Institute ("NCI") states that this would cost $300 to $750 per program hour for a national  X -  program and $125 to $300 for a local program hour.V e {O6-ԍNCI Comments at 5. See also CBS Comments at 28; Capital Cities/ABC Comments at 7. VITAC, another vendor, states that its rate  X -  card indicates that real time captioning costs $810 for an hour program.FW e yO-ԍVITAC Comments at 10.F Caption Colorado,   states that it has been able to reduce the cost of real time captioning from between $600 and $700   per hour to $120 per hour by obtaining television audio programming and delivering encoded  X -  captions through telephone lines.UX e yO-ԍCaption Colorado Comments at 1, 3. U Others estimate the average cost of live captioning to be  X-between $150 and $800 per hour.DY4e yOu!-ԍALDA Comments at 5.D  Xb-  "049.` ` Captions often must be reformatted when programming is rebroadcast or distributed   by a secondary video provider. For a secondary use, a program may be edited to fit a time   kperiod that is different from the original one and commercials may need to be inserted. This"4Y,-(-(ZZ"  X-  zediting can ruin the timing of the captions and therefore reformatting is required.RZe yOy-ԍCaption Database Comments at 3. R In cases   ?where parts of the program are removed or rearranged, the captions must be removed or  X-  rearranged accordingly.C[Xe yO-ԍPBS Comments at 3.C The cost of reformatting is approximately one fourth that of the  X-  ?original captioning, or approximately $400 to $800 for a full length movie.f\e yOT-ԍALDA Comments at 3; Caption Database Comments at 34.f Estimates of   .reformatting costs generally range between $350 and $450 per hour, depending on the amount  X-of editing,`]xe yO -ԍA&E Television Networks ("A&E") Comments at 15.` although it is reported that the cost of reformatting can be as high as $750.o^e yOF -ԍNational Cable Television Association ("NCTA") Comments at 15.o   X_-  $150.` ` A program producer or provider also can do its own captioning inhouse. An   jentity that does its own captioning must acquire equipment to add captions. For a station that   [does a significant amount of its own programming, it may be more effective over time to do the  X -  /captioning inhouse using stenocaptioners._ e yOc- ԍStenocaptioners are trained as court reporters. For an experienced court reporter it takes approximately four   Jto six months of additional training to obtain the skills needed to report the verbatim speech, using correct spelling,   syntax and grammar, and understand what is said. Telephone Interviews with Jeffrey M. Hutchins, Vice President   and General Manager, VITAC, and Gerald Freda, Vice President, Production and Engineering, NCI (May 31, 1996).   The National Court Reporters Association recently created a new Certificate of Realtime Reporting which tests court reporters' skills in this area. WGBH Comments at 19. A one time equipment expenditure would be   between $50,000 and $75,000, although it would also require significant staff time to operate this  X -  equipment over the course of a year..` e yO- ԍSchwartz, Woods & Miller Comments at 10. For a list of the items specific to the captioning industry and  {Ou-costs, and other generally available equipment needed to set up a captioning studio, see CTA Comments at 67.. For a local public broadcasting station, specialized   captioning equipment to provide a work station and encoding equipment for one staff person costs   between $12,000 and $22,000, in addition to a cost of approximately $2500 to train a person to  X -  caption.|a je yO-ԍAssociation of America's Public Television Stations ("APTS") Comments at 4.| A station that distributes three and one half hours per week of locally produced taped   programming, and captions 95% of that programming, may have to spend $40,000 on equipment,  Xy-  $5000 on training and $31,000 per year plus benefits for each of two stenocaptioners.Ebye {O$#-ԍId. at 5, n.9.E After   jinitial equipment and training costs, ongoing captioning can represent between 5% and 8% of"bb,-(-(ZZ"   the local production budget, compared with outside contracting which can reach as high as 16%  X-of a station's local production budget.@ce {Ob-ԍId. at 5.@  X-  251.` ` Depending on capabilities, the cost of the equipment and software needed for a   local station to provide electronic newsroom captioning generally ranges between $2500 and  X-  $5000,dZe yO- ԍNAB Comments at 45, n.7. Capital Cities/ABC states that live display captioning, of which the electronic newsroom is a variation, costs between $500 and $550 an hour. Capital Cities/ABC Comments at 7. but some estimates are as high as $10,000.Cee yO -ԍCTA Comments at 5.C The National Association of Broadcasters   -("NAB") reports that the average cost of captioning for local stations responding to its survey is   $514 per week, primarily for local newscasts. Since this figure includes stations that report no   zcosts (which NAB assumes use only electronic newsroom capability), NAB asserts that the   yaverage cost is more likely to be $1007, exclusive of nocost stations. NAB concludes that this   Mrepresents stations that use stenographic captioning or a combination of stenographic and  X -electronic newsroom captioning.f Be yO-ԍNAB Comments at 5, Attachment. The highest reported weekly captioning cost was $4500.  X -  352.` ` A primary concern for those not currently captioning their programming, especially   local broadcast stations, cable networks and local cable systems, is the relatively high cost of  X -  xcaptioning when compared to their total budgets.g\ e yO*- ԍFor network programming, this cost might be considered relatively small compared to the total production  {O-  budget of many programs. NAD claims that a typical episode of Seinfeld costs $750,000. NAD Comments at 28,  {O-n. 30. See also Massachusetts Commission for the Deaf and Hard of Hearing Comments at 3.  Commenters state that the cost of captioning   local programming is likely to be a significant cost for local stations, even for major station  Xy-  groups and larger market stations.Ghy e yO -ԍCBS Comments at 2930.G The Association of Local Television Stations ("ALTV")   claims that it would cost an individual television station approximately $100,000 a year to caption  XK-  one hour per day of its local programming.JiK e yO-ԍALTV Reply Comments at 3.J For many affiliated and independent stations, the  X4-  ]costs of even limited amounts of captioning would exceed their annual pretax profits.Gj4e yO!-ԍALTV Comments at 911.G   Television station WSSTTV estimates that to close caption its daily six hours of local   =programming would cost approximately $7500 a day, added to the present daily operating cost  X-of approximately $1650.ke yOF&- ԍWSSTTV Reply Comments at 56. This estimate is based on a per hour captioning cost of $1250, and  {O'-should be compared to its daily income of approximately $2000. Id. "k,-(-(ZZ "Ԍ X-  ԙ453.` ` The National Cable Television Association ("NCTA") estimates that it would cost   kthe cable industry between $500 and $900 million per year to caption all basic cable network   yprogramming that is not currently captioned. This cost would represent nearly one third of the   ybasic cable programmers' current total annual programming expenditures. NCTA further claims   that the cost of captioning just prime time basic cable programming would range from $58 to  X-  $116 million a year.Ele yO-ԍNCTA Comments at 15.E Liberty Sports ("Liberty") states that closed captioning would add   approximately 10% to the full production budgets of national sports events, which are generally  X_-  in the $15,000 to $25,000 range.bm_Xe yOh -ԍLiberty Sports ("Liberty") Reply Comments at 34.b The F&V Channel ("F&V") estimates that it would cost   =approximately $4.5 million to caption programming for a year, an amount that exceeds its entire  X1-  programming budget.n1e yO - ԍF&V Comments at 45. These estimates are based on an estimated cost of $1200 per program hour, $750  {O-per half hour program and $250 for a commercial minute. Id. The Weather Channel estimates that in order to caption its own live,  X -  often ad libbed, programming, it would need to have 12 realtime stenocaptioners on staffo Be yO - MԍThe Weather Channel estimates that it would have to pay an average salary of $50,000 plus benefits per stenocaptioner. The Weather Channel Comments at 4. and   zacquire the equipment needed for two captioning work stations at an estimated total cost of  X -$33,000.p e yO7- ԍThe Weather Channel Comments at 4. The equipment costs include setting up the two work stations, two personal computers, captioning software, keyboards, EEG Smart encoders and monitors/headphones.   X -  554.` ` Local cable programming is often transmitted on public, educational or government   ("PEG") access channels. The Alliance of Community Media estimates that the average annual   budget of a full service access center is $227,147. However, a typical access center, such as the   [one in Riverside, California, operates with a budget of $50,000 and serves a population of more   than 350,000. At an estimated cost of $2500 per program hour, this center could caption only   20 hours of programming per year and have no funds left over for salaries, equipment and  X4-  Lexpenses.kq4 e yO-ԍAlliance for Community Media ("Alliance") Comments at 56.k The Fairfax Cable Access Corporation states that it produces between 80 and 100   hours of programming a month. It estimates that it would cost $160,000 per month to add  X-captions to all of its programming, assuming a closed captioning cost of $2000 per hour.Wr e yO9"-ԍFairfax Cable Access Corporation at 1.W  X-  655.` ` The City of St. Louis estimates that the cost of closed captioning its Board of   Aldermen's meetings, which are carried by the local cable system, for one year, would exceed"r,-(-(ZZ"  X-  $20,000 if an outside vendor were used.MsXe yOy- ԍCity of St. Louis ("St. Louis") Comments at 23. This estimate is based on a cost of $425 for each of the   w40 three to four hour meetings a year and would not include an additional $50 per hour to have an engineer available to ensure all goes smoothly.M Alternatively, the City states that if it were to develop   /its own captioning the equipment needed would cost more than $9000, with software alone   zcosting $3995. In addition, encoding equipment would cost about $6300 and captionwriters  X-would need to be hired at salaries of $30,000 a year plus benefits of an additional 26%.Ite yOT-ԍSt. Louis Comments at 3.I  X- ` ` E. Current Availability of Programming with Closed Captioning!!m  Xv-  X_-  756.` ` As indicated earlier, Section 713 of the Act directs the Commission to ascertain   the level at which video programming is currently closed captioned. Specifically, we are required   <to examine the extent to which existing or previously published programming is closed captioned,   the size of the video programming provider or programming owner providing closed captioning,   the size of the market served and the relative audience shares achieved. The information   provided in this section concerning the current availability of programming with closed captioning is responsive to these issues.  X -  857.` ` Programming is most likely to be closed captioned when it is distributed nationally   =and available to a significant portion of all U.S. television households. In addition to reaching   ja substantial number of homes, such programming is available during the times of day with the   highest viewing levels. The most popular programs as determined by audience ratings also are   the ones most likely to contain captions. Accordingly, we find that the market served by   ^programming with closed captioning is potentially large in size. However, there is no   xinformation available from audience ratings services or elsewhere regarding how many individuals  X-  currently use closed captioning when watching television programming.Cuxe yO/-ԍNAB Comments at 7.C Thus, we are unable   <to assess the relative audience shares achieved by programs that are closed captioned as a result of such programming being accessible to individuals who are hearing disabled.  X-  958.` ` We find that in recent years programming distributed by the national broadcast   knetworks, both commercial and noncommercial, has generally been captioned. For example,   virtually all prime time programs, children's programming, news, daytime programming and some   sports distributed by the networks contain closed captions. Programming widely distributed by   ibroadcast syndication is captioned. Local television stations in larger television markets are more   Klikely to caption programming than other stations, especially local news broadcasts. Many of the   znational satellite cable programming networks include closed captions as do some local and   regional cable programming services. In recent years, feature films produced in the U.S. that will   be distributed by broadcast networks, cable networks, syndicators and local stations following   their theatrical release are closed captioned at the production stage. In many cases, the cost of"u,-(-(ZZ"   =captioning these types of programming represents only a small portion of the total production budget.  W<` ` 1. National Broadcast Television Networks  X-  :59.` ` Broadcast television networks produce or acquire programming for distribution by   =their local affiliates. Until now, all closed captioning has been done on a voluntary basis, with  X_-  kthe exception of emergency broadcast informationvZ_e {O- ?ԍSee 47 C.F.R.  73.1250(h). Under Section 73.1250(h) of our rules, emergency information must be   transmitted "aurally and visually or only visually," although the method of visual presentation is left to the television station and could be accomplished by means other than closed captioning.  and government funded public service  XH-announcements.wHe yO -ԍSection 711 of the Act, which was added by Title IV of ADA, 47 U.S.C. 611.  X -  ;60.` ` PBS has been at the forefront in the development of captioning technology and   >services. PBS is a nonprofit membership organization whose members are the licensees of   public television stations. PBS has approximately 340 affiliates that reach almost all television  X -  Zhouseholds.x ze {O-ԍR. R. Bowker, A Reed Ref. Pub. Co., Broadcasting & Cable Yearbook 1996 at G73. PBS began distributing closed captioned programs to its member stations in 1980.   PBS has voluntarily adopted the practice of requiring producers to provide closed captioning in   Lall programming funded by PBS's National Program Service. All children's programs and prime  X-  .time programming on PBS are closed captioned. In addition, the Newshour with Jim Lehrer is   Kclosed captioned each evening. The few PBS programs that are not closed captioned are visually   oriented (e.g., ballet or other dance performances), or are nonverbal in nature (e.g., a symphony   Zconcert). NonEnglish language operas are not closed captioned since they already contain open  X6-English subtitles.Cy6 e yO-ԍPBS Comments at 2.C  X-  <61.` ` PBS Learning Media distributes videocassettes and video laser discs of PBS   programs to educational users and the general public through PBS Home Video and PBS Video.   jWhenever a program is licensed to PBS for home and audiovisual distribution and is available   with captioning, PBS Learning Media tries to include the captioning in the version it distributes.   The PBS video educational collection has over 1200 titles in distribution, over 80% of which are  X-closed captioned.@ze {O"-ԍId. at 4.@  Xg-  2=62.` ` Each of the three oldest commercial broadcast networks ABC, CBS and NBC   /reach virtually all households through their approximately 210 affiliated local stations. The   ^majority of programming on these three networks, including virtually all of prime time"9. z,-(-(ZZ"  X-  programming, is closed captioned.{e yOy-ԍNBC Comments at 3; CBS Comments at 9; Capital Cities/ABC Comments at 4; ALDA Comments at 3. NBC provides an average of 94 hours of programming per   week to its affiliates and captions a minimum of 72 to 80 hours of such programming, with an   average of 83 hours per week, or 88.3%. This weekly total comes to about 3750 to 4150 hours   per year of captioned programming. NBC has provided this level of captioning for approximately  X-  /three years.|Xe yO- ԍ NBC Comments at 3; Telephone Interview with Ellen Agress, Vice President, Legal Policy and Planning, NBC (June 4, 1996). ABC offers on the average about 90 hours of programming each week to its  X-  affiliates.R}e yO -ԍCapital Cities/ABC Comments at 5.R All ABCproduced shows, including news, sports, children's and entertainment  Xv-  programming, with very limited exceptions, are captioned.B~v@e {Og -ԍId. at 67.B In 1991, CBS captioned four hours   of network programming per day. By the end of 1995, CBS captioned a daily average of 13.5   hours of programming provided to affiliates, or between 85 and 95 hours per week, depending   [on weekend sports programming schedules. With the exception of its overnight news service,  X -all of CBS's network programming is closed captioned.E e yO-ԍCBS Comments at 89.E  X -  >63.` ` ABC, CBS and NBC, however, do not caption their overnight news programs  X -  broadcast between 2:00 a.m. and 6:00 a.m., such as World News Now on ABC,T b e yO-ԍCapital Cities/ABC Comments at 56.T NBC  X -  \NewsChannelC e yOc-ԍNBC Comments at 4.C and Up to the Minute on CBS.H e yO-ԍCBS Comments at 9. H These overnight news programs are not   <captioned because their late night time slots provide relatively low ratings and limited advertising  X-  revenues which the networks feel do not justify the cost of captioning.Re yOW-ԍCapital Cities/ABC Comments at 6.R They also are often a  X}-  -compilation of reports sent to the networks by their affiliates without captioning.C}e yO -ԍNBC Comments at 4.C Furthermore,   even if some of the reports were initially captioned, the affiliates may retransmit only portions   of these programs to the network for their use, thereby adversely affecting the flow of the captioning.  X -  ?64.` ` There are three newer commercial national networks Fox, United Paramount   NNetwork ("UPN") and WB Television Network ("WB"). The Fox television network has"2,-(-(ZZE"  X-  approximately 140 affiliates,e {Oy-ԍR. R. Bowker, A Reed Ref. Pub. Co., Broadcasting & Cable Yearbook 1996 at G69. and reaches almost all homes. It distributes 16 hours of prime   time, late night and early Sunday morning programming. In addition, it distributes 19 hours of  X-  children's programming throughout the week. All of this programming is closed captioned.Ze yO- ԍInformation from Peggy Binzel, Senior Vice President, Government Relations, Fox Broadcasting Company (June 17, 1996).  X-  UPN has 156 affiliates, and covers 92% of the country.e {O -ԍCynthia Littleton, WB, UPN Rally the Troops, Broadcasting & Cable, June 10, 1996, at 2021. UPN distributes six hours of prime   time programming, one hour of children's weekend programming and a movie on Saturday   afternoons. All of this programming is closed captioned. Closed captioning is one of the   network's "delivery requirements" for its programming. Accordingly, the captioning is done by  X_-  -the program producers. Commercials on UPN are generally not closed captioned._De yOT- jԍTelephone Interviews with Robert Kaplan, Programming Director, United Paramount Network ("UPN") and Robert Giese, Vice President, Chris Craft Broadcasting, (May 29, 1996). WB reaches  XH-  z84% of the country.He {O- 2ԍCynthia Littleton, WB, UPN Rally the Troops, Broadcasting & Cable, June 10, 1996, at 2021; Communications Daily, May 21, 1996. It distributes five hours of prime time programming and five hours of   children's programming each week. All of WB's prime time programming is closed captioned.  X -The children's programming also is captioned, except for some older cartoons. e yO- zԍTelephone Interview with Mitch Nedick, Head, Finance and Administration, the WB Television Network (July 8, 1996).  X -  @65.` ` While nationally broadcast sports programming generally includes captions, none   Kof the three established networks regularly captions regional sports programming. One exception   .has been the regional games of the 1995 and 1996 NCAA Men's Basketball tournament, which  X -  were captioned by CBS through joint efforts with funding and captioning agency partners.G N e yO-ԍCBS Comments at 1415.G The   broadcast networks assert that there are several reasons why networks generally do not caption   [regional sports programming. First, there are technical and logistical problems associated with   delivering different games to the affiliates in various parts of the country at the same time.   -Second, captioning services may not exist in the regions where particular games will be televised,   so it is not possible for a stenocaptioner to "see" the game to caption it in real time. Third, there   may not be encoding equipment at the game site from which the programming is transmitted by   uplink. In addition, broadcast networks state that a sporting event is essentially visual, and   statistical information and the progress of the game are often indicated by graphics, thereby  X-  reducing or eliminating the need for captioning.me yOg&-ԍNBC Comments at 1314; ABC Comments at 6; CBS Comments at 6.m Finally, much sports programming is by its   very nature perishable; sports events have substantial entertainment value only at the time of their"n,-(-(ZZ"   zoccurrence. Since there is no residual market for such programming, commenters argue that   <production costs, including captioning, cannot be spread over multiple showings. Therefore, the  X-  networks claim that they have no real financial incentive to caption most sports programming.^e yOK-ԍNCTA Comments at 11; Liberty Comments at 67.^  X-  aA66.` ` Many commercials scheduled during and adjacent to network programs are   captioned by the advertising agencies which produce them. These advertisers recognize that   without closed captioning they may fail to reach potential consumers who are deaf or hard of   jhearing. Network promotions of upcoming network programs are generally not captioned. For   Mexample, NBC produces approximately 75 to 100 promotional spots a day which are 10 to 20   jseconds in length and usually broadcast within 24 hours after being produced. In some cases,   [especially for news magazines with topical subjects, the promotional spots are produced just a   few hours before being aired. These time frameworks may make captioning such spots   logistically difficult or impossible. Networks such as NBC state that even for uncaptioned   promotional spots, information about the name of the program and the time of the upcoming  X -broadcast is often displayed visually by graphics contained in the spot.C Xe yO-ԍNBC Comments at 4.C  W<` `  2. Local Broadcast Television Stations  Xb-  B67.` ` Local television stations distribute programming they receive from a network, if   >they are affiliates, purchase programming in the syndication market and produce or acquire   programming locally. As discussed above, stations affiliated with a network carry captioned   programming during a significant portion of the broadcast week. First run syndicated   \programming is not produced by or for any particular network and is distributed to stations   irrespective of network affiliation. Offnetwork syndicated programming is programming that   originally aired on a particular network and is now available in reruns to stations that wish to  X-  zpurchase it. Examples of such programming are I Love Lucy and M*A*S*H. The amount of   -captioned first run syndicated programming varies depending on who produces and who airs the  X-  [programming. Certain first run syndicated programming such as Jeopardy!, Wheel of Fortune,  X-  zand Oprah is closed captioned by the program producers and/or distributors.Ye yO-ԍVITAC Comments at 12; CTA Comments at 3.Y Newer off  jnetwork syndicated programming, especially that produced after the mid1980s, is often closed  XT-  ycaptioned. Most offnetwork programming produced before the mid1980s, such as Bewitched  X?-and Jackie Gleason, was not captioned when produced and remains uncaptioned.D?xe yOh#-ԍNAD Comments at 16.D  X-  C68.` ` According to a study conducted by NAB, 70% of the stations responding to its   isurvey provide closed captioning for some of their nonnetwork programming. This study further   divides stations according to market size and indicates that market size plays some role in",-(-(ZZJ"   determining how much nonnetwork programming stations caption. The study suggests that the   highest percentage of stations captioning programs are those in the midsized markets (Nielsen   zdesignated market area or DMA market ranks 26 to 50 and 51 to 100), where over 75% of the  X-  stations reported that they provide captioning.e yO4- ԍFratrik, "The Television Industry's Provision of Closed Captioning Services in 1996," National Association of Broadcasters (March 15, 1996) ("NAB Study"), NAB Comments, Attachment at 2. The actual amount of captioned programming   yalso varies according to the NAB study, with the stations in the largest markets (Nielsen DMA   market ranks 1 to 25) airing an average of approximately 158 hours of captioned nonnetwork  Xv-programming over the last year.Bv e yOG -ԍNAB Study at 34.B  XH-  D69.` ` Most commercial stations that caption local news use electronic newsroom ("ENR")   captioning. Because ENR captioning is created from the text of the newsroom's teleprompter,   the quality of ENR captioning depends on the amount, completeness, and accuracy of the   information entered into the system. Live reports from the field or reports of breaking stories,   much sports and weather reporting, and ad libs and banter by the anchors will not be captioned  X -  unless a verbatim script is added to the computer running the text from the teleprompter.D e yO6-ԍCBS Comments at 17.D  X -  =According to NAB, 81.5% of stations caption their local news.U @e yO-ԍNAB Comments at 3; NAB Study at 45.U All ten of ABC's owned and  X -  operated stations caption their local news.R e yO(-ԍCapital Cities/ABC Comments at 9.R Eight of NBC's nine networkowned television  X-  stations caption their local news programs.C` e yO-ԍNBC Comments at 5.C However, any unscripted remarks by anchors are  Xy-  not captioned.@y e {O-ԍId. at 5.@ Some stations sell captioning sponsorships that give the sponsors commercial  Xb-mention as a means of defraying the cost of captioning.Rb e yO-ԍCapital Cities/ABC Comments at 9.R  W4<` ` 3. Cable Television Systems  X-  "E70.` ` Cable television systems distribute the programming of local broadcast stations and   Lcable programming networks, and their own locally produced programming to subscribers. To   the extent that the broadcast programming they carry is captioned they are required by  X-  Commission rule to retain the captioning.Fe yO&-ԍ47 C.F.R. 76.606.F There are more than 100 satellite delivered cable",-(-(ZZ"   .programming networks. In addition to carriage by cable systems, these programming services   also are distributed to subscribers by other MVPDs. These networks range from those, such as   CNN and USA, that are available to almost all cable subscribers, to many with more limited   distribution, either because they are new or they offer programming aimed at more limited niche  X-audiences.dXe yO- ԍFor example, CNN and USA, which began in 1980 are currently available to over 60 million homes, while   -a newer channel, such as the Outdoor Life Channel which began in 1995, is available to only 2.4 million homes. NCTA Cable Television Developments Spring 1996 at 35, 66, 78.d  Xv-  F71.` ` According to NCTA, the overall percentage of captioned programming (for the top  X_-  20 basic and expanded basic cable servicesZ_e yO - ]ԍThe top twenty basic cable networks are: AMC, A&E, CNBC, CNN, CSPAN, Discovery, ESPN, The   Family Channel, Headline News, Home Shopping Network, Lifetime, MTV, Nickelodeon, QVC, TNN, TNT, The  {O -Weather Channel, USA Network, VH1 and TBS. NCTA Comments at Attachment A, citing TV Guide. and the most widely distributed six premium  XH-  networksH e yO- >ԍThe most widely distributed premium cable networks are Disney, Encore, HBO, Cinemax, Showtime, and  {O-The Movie Channel. NCTA Comments at Attachment A, citing TV Guide.) is nearly 24%.lHd e {O]-ԍNCTA Comments at 4 and Attachment A, citing TV Guide.l For premium services alone, NCTA asserts that the number is over   54% with individual premium services ranging as high as 80% of the entire weekly schedule.   These percentages translate to over 30,000 hours per year of closed captioned programming  X -  provided by the top 20 basic networks and the top six premium networks.@ e {O-ԍId. at 4.@ According to   NCTA, nearly 30% of prime time programming on the top 20 basic cable networks and over 60%  X -on the top six premium networks is closed captioned.; e {O-ԍId. ;  X -  oG72.` ` A number of cable programming networks are available on a per channel or per   program basis. These premium services generally provide movies and special events. Home Box   Office ("HBO") and Cinemax, two of the most widely available of these services, provide a   @variety of programming, much of which is captioned. In 1995, HBO and Cinemax had   captioning on 76% of their theatrical motion pictures, 83% of their musical programming, 94%   of their documentaries, 72% of their family programming, 82% of their series, 100% of their  X-comedy programs, and 100% of other categories of programming.Ce yO"-ԍHBO Comments at 7.C  X-  H73.` ` According to NCTA, there are several reasons why the percentage of closed   .captioning on cable television is lower than that of closed captioning on broadcast television.   =First, there are over 100 national cable programming networks, most of which operate 24 hours",-(-(ZZ"  X-  a day, seven days a week.e {Oy-ԍNCTA Comments at 6. See also 1995 Competition Report, 11 FCC Rcd at 2131 150. Furthermore, there are more than 40 regional and local cable   programming networks. All of these networks combined represent thousands of hours of   television programming daily. In contrast, there are only four major commercial broadcast   .networks, which combined present only 40 hours of network television programming daily. In   addition, NCTA emphasizes that most government funding that has enabled programmers to close   caption programming has historically been directed to the broadcast networks, both commercial  Xv-and noncommercial, rather than the cable networks.DvZe yO -ԍNCTA Comments at 6.D  X_-   XH-  _I74.` ` Cable networks also differ significantly from broadcast networks in their audience   /reach. Unlike the four major broadcast networks which reach nearly 100% of the television   .households in the U.S., even the most widely available cable network reaches only the 65% of   the nation's television households that choose to subscribe to cable and DBS, and the  X -  approximately 5% of homes subscribing to other MVPDs. e {O-ԍJim McConville, The Search for DBS Homes, Broadcasting & Cable, May 27, 1996, at 35. Thus, even though cable networks   may be available nationwide, they only obtain carriage on a limited number of systems. Even   when they obtain carriage, they gain only a limited number of viewers. Some cable networks  X -  are also limited to certain regions, which further reduces their audience reach.F |e yO-ԍNCTA Comments at 67.F In addition,   Mmany cable networks target niche markets, some are quite new compared to the established   broadcast network, and others do not have the audience viewership or the money to support  Xb-  =captioning.3"b e yO- zԍFor example, for April 1996, the average prime time rating for the USA Network, the highest rated cable   network was 2 compared to the prime time rating for NBC, the highest rated broadcast network, of 10.5. Paul Kagan  {O-  Associates, Cable TV Programming, June 30, 1996, at 10; People's Choice: Ratings According to Nielsen, Broadcasting & Cable, April 15, 1996, at 52, April 22, 1996, at 38, April 29, 1996, at 34 and May 6, 1996, at 21. 3 NCTA points out that the costs of captioning are fixed and do not hinge on the   number of subscribers reached or the production budget for a program. Some cable networks   operate with proportionately smaller programming budgets than large broadcast networks or the   producers of shows for premium cable channels. For example, Arts & Entertainment Television   \Networks ("A&E") states that the four major broadcast networks spend more on prime time   =programming in two weeks than does a cable network the size of A&E or The History Channel  X-  <in the course of a year.G e yO"-ԍA&E Comments at 1718.G Given these financial realities, NCTA asserts that many cable networks  X-  may find that the costs of captioning exceed their programming budgets for the entire year.E e yO$-ԍNCTA Comments at 22.E   kTherefore, in the cable context, NCTA believes that the size of the audience viewership and",-(-(ZZ"   yadvertising base rather than the size of the market reached by the programming service, should  X-be a key factor in determining a cable network's economic ability to afford captioning.Ae {Ob-ԍId. at 13.A  X-  DJ75.` ` Furthermore, much of the programming aired by many cable networks is   Zsignificantly different from that of broadcast networks in terms of scheduling, format and content.   The nature of cable programming varies significantly from network to network, and this may   {affect the logistics and costs of closed captioning. According to NCTA and many cable   networks, these qualitative differences in cable programming account in large part for the   quantitative differences in the percentage of closed captioning on cable networks. For example,   many cable networks regularly show a substantial number of older films and television series,   none of which were captioned when produced. NCTA asserts that some cable networks present   topical or perishable programming with a short shelf life, such as music videos and sports   programming. Numerous cable networks present live programming on a continuous basis, 24   hours a day, which would require realtime captioning. Other cable programming, such as home   shopping channels or weather reports, often contain textual material or other visual depictions of   xthe information being described verbally, which according to the cable networks reduces the need  X-for captioning.gZe {O-ԍId. at 78; The Weather Channel Comments at 34.g  Xb-  3K76.` ` Some national news on cable is closed captioned. For example, CNN captions   approximately 50% of its day, and CNN Headline News captions approximately 25%. CNN   Headline News also provides onscreen financial and sports information in textual form 24 hours   a day. CNBC, a 24hour consumer news and business programming service on basic cable that   is owned and operated by NBC, currently stenocaptions 47 1/2 hours of programming per  X-  week.Ce yO-ԍNBC Comments at 5.C America's Talking, another basic cable network owned and operated by NBC which  X-  focuses on news and information, does not currently caption any of its programming./Z|e {O- ?ԍId. at 56. On July 15, 1996, America's Talking was replaced by MSNBC, which is not captioning its   -programming. Telephone Interview with Ellen Agress, Vice President, Legal Policy and Planning, NBC (July 9, 1996). / The   Cable Satellite Public Affairs Network ("CSPAN" and "CSPAN 2") captions the proceedings   of the U.S. House of Representatives and the U.S. Senate. Pursuant to a grant, CSPAN also  X-  captions the one hour program Booknotes which airs on Sunday evenings, but the continuation  X~-  -of this grant is uncertain.~e yO#-ԍTelephone Interview with Marge Amey, Viewer Services Assistant, CSPAN (June 17, 1996). Furthermore, cable local news channels generally do not caption live  Xg-programming.Dg. e yOF&-ԍNCTA Comments at 9.D "P ,-(-(ZZ"Ԍ X-  L77.` ` Kaleidoscope, a 24hour a day cable programming network started in September   1990, was established for the purpose of serving persons with disabilities. This network is   ?distributed by 201 cable systems and now reaches approximately 15 million subscribers.   lKaleidoscope provides both general interest programming and programming specifically   =addressing topics relevant for persons with disabilities. All of Kaleidoscope's programming is   "open captioned" so that the captioning is visible to all viewers. Kaleidoscope does its own  Xv-captioning and also "open captions" programming it receives which is closed captioned.*ve yO- ԍNCTA Comments at 5; Telephone Interview with Ryan Prince, Director of Kaleidoscope's National   Advisory Board (May 29, 1996) ("Prince Interview"). Kaleidoscope has transmitted its service using digital   compression technology since April 1995, and is currently trying to expand its coverage through the DirecTV and   iPrimestar DBS systems. HSD owners who subscribe to Kaleidoscope need a special decoder to receive the digital signal.*  XH-  2M78.` ` In addition to national cable networks, cable operators provide regional and local   [programming. The regional programming is primarily news and sports channels. Much locally   yoriginated programming carried by cable operators is on their PEG channels. Programming over   PEG channels is usually produced by individuals, schools, local governments or small nonprofit   organizations working with volunteer personnel. Most of these program producers usually operate  X -with very limited funding that results in a low level of captioning of PEG programming.H xe yO-ԍAlliance Comments at 7.H  W <` `  4.  Other Types of Programming   Xy-  N79.` ` Broadcast and cable programming include movies. Nearly all widely distributed   motion pictures currently produced and distributed by member companies of the Motion Picture   Association of America ("MPAA") are closed captioned for distribution over broadcast television,   home video and cable television following their theatrical release. Following first run release,   .a "submaster" of each motion picture is created, which is then closed captioned by the NCI or   another captioning service. All prints of the motion picture distributed for broadcast television,   cable television or home video exhibition are manufactured from the initial captioned submaster   -prepared for home video release, or from a subsequent submaster edited for broadcast television,   >and are therefore captioned themselves. More than 6000 closed captioned titles have been  X-  <distributed.Ge yOc -ԍMPAA Comments at 34. G According to MPAA, there are approximately 24,000 previously released films that  X-  have not been closed captioned and which would cost $38.4 million to caption.Ae {O"-ԍId. at 12.A MPAA and   other commenters believe that, because of the need to pass through these costs, broadcasters and   other video programming providers would simply not purchase older programs and films which"e!* ,-(-(ZZ"   would then sit on the shelf unviewed. This situation would result in reduced diversity of  X-programming products available to the public.Ae {Ob-ԍId. at 12.A   X-  O80.` ` Closed captioning of programming for nonEnglish speakers on both broadcast and   jcable channels is quite limited because captioning, particularly in multiple languages, can pose   jvarious logistical problems. Because such programming is targeted to a narrow niche market   minority and ethnic viewers and is programmed in nonEnglish languages, it has much more   limited distribution, as well as more limited advertising and subscriber revenues than most   English language programming. These factors can make the cost of captioning programming for   nonEnglish speakers significantly higher than English language captioning. Furthermore,   [expertise in nonEnglish language captioning may be scarce and, for some languages, virtually  X -  unavailable.q Ze yO-ԍInternational Cable Channel Partnership, Ltd. ("ICCP") at 3. q In addition, the alphabets and characters used in certain nonEnglish languages   cannot be processed with standard computerized word processing and closed captioning  X -  equipment.7X e yOp- \ԍAmong the languages with distinctive alphabets and characters are Arabic, Cambodian, Chinese (including   various Chinese dialects) and Japanese, Farsi, Hebrew, Hmong, Hindi, Korean, Russian, Tagalog (Filipino), Thai and Vietnamese.7 Even if such languages can be captioned with special equipment, the captioning   zdecoders currently available in television sets used in the U.S. can only decode Latin based   alphabets and symbols. Accordingly, captioning that uses nonLatin characters, such as Chinese,  X-  -Russian and Hebrew, cannot be decoded on the television sets used by U.S. viewers.g\ e {OK- ԍElectronic Industries Association of America (EIA) Standard Recommended Practice for Line 21 Data  {O-  Service (EIA Document #608) September 1994 at 1422; Telephone Interview with Gerald Freda, Vice President, Production & Engineering, NCI (June 17, 1996). g Another   -logistical factor is that closed captioning in English would require a staff with multiple translators   jof numerous languages. Whether captioned in English or a particular nonEnglish language, it  XK-can be extremely difficult to assure the accuracy and quality of such multilingual captioning.;K. e yO*-ԍICCP at 3.;  W<` ` 5. Other Multichannel Video Providers  X-  P81.` ` Television programming is also delivered to consumers through several other   MVPDs. These video distribution technologies retransmit programming also delivered over   broadcast and cable delivery systems. One such new provider is the directtohome ("DTH")   ysatellite systems. Approximately 2.2 million homes subscribe through direct broadcast satellite   [("DBS") service and 2.3 million homes subscribe via home satellite dishes ("HSDs"). The total  X|-  4.5 million DTH subscribers represent approximately 5% of U.S. television households.~| e yO&-ԍSatellite Broadcasting and Communications Association ("SBCA") Comments at 4.~ DTH"|"N ,-(-(ZZA"   is purely a program delivery system. Until now, it has not participated (other than through   program licensing), in the creation of closed captioned programming, except for retransmitting   intact the closed captioning already encoded in the programming it delivers to subscribers. All   =closed captioned payperview, offair broadcast signals carried on satellite, satellitedelivered   ^programming and PBS broadcasts carrying closed captioning are included in satellite  X-transmissions.Ge yO-ԍSBCA Comments at 2, 6.G  X_-  Q82.` ` Another multichannel video provider is the wireless cable industry, which includes   licensees of multipoint distribution service ("MDS") stations and ITFS stations that lease   itransmission capacity to wireless cable operators. Currently, wireless cable operators rely heavily   on program suppliers such as broadcast networks and cable networks for their commercial   programming. Most wireless cable systems voluntarily retransmit to their subscribers intact any   closed captioning provided with that programming. The only exception to this general rule is   when the scrambling system employed by some wireless cable systems does not allow line 21 of  X -  \the VBI to be passed through to the subscriber's television set.~ Xe yO-ԍWireless Cable Association International, Inc. ("WCA") Comments at 2, 3, 7. ~ Much of the educational   programming carried on ITFS channels and retransmitted on wireless cable systems is not closed  X-captioned.@e {O)-ԍId. at 6.@  Xb-  3R83.` ` Local exchange carriers ("LECs") also can provide video programming service   through telephone lines. For example, Bell Atlantic is current delivering video programming that   has previously been captioned by the programming provider over its digital video system in  X-  Dover Township, New Jersey.Nze yOH-ԍBell Atlantic Comments at 4. N Many of the hardware and software components of advanced   \digital systems that Bell Atlantic will deploy, however, are in the prototype stage or not yet   engineered to accommodate captioning. Bell Atlantic states that it cannot ensure compliance with   -any captioning requirements for any future systems it will deploy until it has had the opportunity  X-  ito develop and test all system components required to support such requirements.B e {O|-ԍId. at 45.B Pursuant to   Section 653 of the Communications Act, LECs operating open video systems ("OVS") will be  X-  Lsubject to the mustcarry requirements applicable to cable systems.J\e {O"- \ԍSee Implementation of Section 302 of the Telecommunications Act of 1996 Open Video Systems, Second  {O#-  wReport and Order in CS Docket No. 9646, FCC 96249 (released June 3, 1996), summarized  at 61 Fed. Reg. 28698 (June 5, 1996).J Accordingly, under the   mustcarry requirements, OVS providers will be required to transmit intact any captioning contained in the mustcarry signals they retransmit. "N# ,-(-(ZZ"Ԍ X- F. ` ` Funding of Closed Captioning  X-  S84.` ` Currently, closed captioning is funded by a variety of sources. The Federal   government is a major source of funding which is administered by the DOE. Last year, DOE   .provided $7.9 million for closed captioning, which represents roughly 40% of the total amount  X-  spent on captioning.ze {O-ԍTaking Aim at Captioning, Broadcasting & Cable, June 3, 1996 at 18.z Once Congress has made an annual appropriation to DOE, the Department   allocates some of that funding to captioning, establishes priorities for programs and awards grants   to captioning providers that have applied for Federal funding. Winning applicants supply   proposed budgets and program selections for approval by DOE. Among the categories of   programming receiving DOE funding for closed captioning are national news, public information,   <children's and sports programs, movies, miniseries, and special programs broadcast during prime  X -  time, syndicated programming and daytime programming.O Ze yO-ԍNAD Comments at Attachment H. O The national broadcast networks   rely heavily on DOE grants to fund captioning of network programming. For example,  X -  Napproximately 45% of ABC's 1996 closed captioning costs are funded by DOE grants.T e yOp-ԍCapital Cities/ABC Comments at 78.T   kHistorically, most DOE funding has been provided to broadcast television rather than cable  X -  xnetworks.E ze yO-ԍNCTA Comments at 16.E However, the future of Federal funding for closed captioning is uncertain.Z e yOb- ԍOn June 10, 1996, the U.S. House of Representatives passed a bill that would limit government funding of  {O*-  Zcaptioning to news and educational programs. See Individuals With Disabilities Act (IDEA Improvement Act of 1996), H.R. 3268, Sec. 662(a)(10). A similar bill has been introduced in the U.S. Senate, S. 1578. Several   commenters note that this possible defunding scenario appears inconsistent with the 1996 Act,   Zwhich requires that the Commission adopt rules to implement captioning. These commenters also  Xb-voice concerns about the Federal government issuing an unfunded captioning mandate.b, e yO?- ԍSchwartz, Woods & Miller Comments at 3; ALTV Comments at 45; Media Captioning Services Comments at 6.  X4-  T85.` ` Programmers and program providers also receive funding for captioning from   kprivate sources. For example, Capital Cities/ABC states that it will pay for about 46% of the   M$2,840,000 cost of closed captioning its own programming in 1996, with DOE funding about  X-  45% and private sources contributing about 9% of that cost. e yO$#- {ԍCapital Cities/ABC Comments at 78. Capital Cities/ABC states that about 70% of the private source funding is from program producers and the other 30% is from network advertisers. For some of its news and public   affairs programming, CBS has obtained support from advertisers who subsidize captioning as a   public service. CBS also has been able to defray a portion of the costs of captioning its national   and regional sports programming by providing open video credits to advertisers in return for"$,-(-(ZZ"   financial support of the closed captioning for this type of programming. For its entertainment   programming, CBS states that it funds closed captioning in partnership with program producers  X-and advertisers and financial support from the government.Ge yOK-ԍCBS Comments at 1415.G  X-  AU86.` ` Local broadcast stations also use private funding sources for captioning who are   then acknowledged during the broadcast. NAB reports that 67.9% of the stations in their survey  Xv-  that carry captioned news programs have sponsors for the closed captioning.BvXe yO -ԍNAB Comments at 5B This sponsorship   Lby private companies and nonprofit organizations is appreciated by some members of the deaf   and hard of hearing community and is credited for the increase in the amount of captioned  X1-  programming in recent years.D1e yO -ԍALDA Comments at 6.D Some representatives of the deaf and hard of hearing   community, however, find it troubling that the closed captioning is sponsored by private  X -  Lorganizations separate from that of the programming itself. xe yO,- ԍMCAHI Comments at 1; Northern Virginia Resource Center for Deaf and Hard of Hearing Persons ("NVRC") Comments at 5; VITAC Comments at 12. They argue that since the audio   portion of a program does not include similar statements of sponsorship, there is an appearance   jthat captions are a "charity provided by the goodness of a benefactor, and not as it should be:  X -sound business sense, good education strategy and equal access to information.j e {O?-ԍNVRC Comments at 5. See also VITAC Comments at 13.j  X- G.` ` The Quality and Accuracy of Closed Captioning  Xb-  V87.` ` The quality, accuracy and completeness of closed captioning is a relevant factor  XK-  zin examining the accessibility of video programming for persons with hearing disabilities.Kb e yO^- ԍThe House version of this section required the Commission to examine the quality of closed captioning and the style and standards which are appropriate for the particular type of programming. Conference Report at 182.   jUnless closed captions accurately reflect the audio portion of the video programming to which   ythey are attached, they may be of limited use to the viewer. Captions, unlike words in books or   periodicals, are impermanent. When there are typographical errors or incorrect word usage, the   reader does not have the time to look over the previous words to deduce the intended meaning.   <Part of the art of captioning is the presentation, including the manner of captioning, its placement  X-and timing.~ e {O,$-ԍVITAC Comments at 19. See also JoAnn M. Myers ("Myers") Comments at 1.~ "%L ,-(-(ZZ"Ԍ X-  W88.` ` Currently, there is no standardization of captioning styles or presentation.Ce yOy-ԍNCI Comments at 7.C   Captions can be displayed in popup or rollup form. Popup captions are displayed and then   erase entirely. They are used most often for offline captioning. Rollup captions, which are  X-  mostly used for realtime captioning, scroll onto and off the screen in a continuous motion.NXe yO-ԍNAD Comments at Attachment I.N   lSome captioning is verbatim, following exactly what the speakers are saying, while other   xcaptioning is not and reflects some editing on the part of the captioners. Other differences among   captioning styles include the manner in which speakers are identified and how voice inflections,  X_-  background noise, audience reaction and sound effects are indicated.D_e {O -ԍId. at 1819.D For example, some   entities identify speakers using parentheses and others provide the speaker's name followed by  X1-  Za colon.A1ze {O\-ԍId. at 17.A In addition, some captions are centered and others are leftjustified. Expert captioners  X -do not appear to agree on the best presentation style.F e yO-ԍVITAC Comments at 20.F  X -  #X89.` ` A number of problems have been observed with closed captioning. Commenters   report that often captions are omitted from any review of a prior week's program at the beginning  X -  of a show or any preview of a coming episode of a program.D e yO -ԍNAD Comments at 18.D They state that it is not   uncommon for the commercials or station breaks to lack captions during a program that is  X-  otherwise captioned., e {Om- ԍId. at 18; Barbara Liss Chertok ("Chertok") at 2; American Society for Deaf Children ("ASDC") Comments at 3. It is also reported that the closed captions are sometimes turned off five  Xy-  jto eight minutes before the end of national network programming.|y e yO-  ԍJeannette Costa ("Costa") Comments at 2. According to Jeffrey M. Hutchins, Vice President & General   ;Manager, VITAC, this may occur when a local station switches from its master control center to the control center   xin its news room at the end of a prime time program and just prior to the local news. If that control room is not   set up to pass the VBI through properly, the result is the stripping of the captions during the final segment of the program. Telephone Interview with Jeffrey Hutchins (June 17, 1996).| Open character generated   yannouncements, such as emergency messages, election results, weather advisories and school  XK-  closing information, which crawl across the bottom of the screen are obscured by captions.oK6e yO2$-ԍWGBH Comments at 31; ASDC Comments at 34; NAD Comments at 23.o   =The closed captions also tend to disappear when the picture is reduced to a small size in order"4&,-(-(ZZ"   to show other information (e.g., school closings) and they do not return until the picture returns  X-to its normal size.De yOb-ԍNVRC Comments at 6.D  X-  Y90.` ` In addition, commenters observe that the closed captions may not remain with a  X-  program throughout the distribution chain, as would be expected.cXe yO-ԍEEG Enterprises Comments at 3; NAD Comments at 22.c It is reported that,   sometimes, a prime time program broadcast on network television may not have the captions  Xv-  {when it is rerun in syndication or redistributed by a cable network.eve yO -ԍColorado Assistive Technology Project Comments at 4.e When a prime time   jprogram goes into syndication it may be edited to fit a shorter time frame. While the video and  XH-  Naudio portions remain intact, the captioning may be removed.aHxe yOq-ԍAmerican Society of Deaf Children Comments at 4.a For example, some PBS   programming originally broadcast with closed captions has been redistributed on cable by A&E  X -  Kwithout the captions included. e yO- >ԍMassachusetts Commission for the Deaf and Hard of Hearing Comments at 3. A&E does not respond to this assertion in its reply comments. It is also reported that a program may be captioned in one place  X -  <and not another. For example, one commenter claims that Jeopardy! is captioned in Washington,  X -  D.C. and Nashville, Tennessee, but not in Atlanta, Georgia.Z ` e yO- ԍAtlanta Hears Chapter/SHHH Comments at 2. It is not clear to what extent the commenter monitored this   wprogramming and whether the lack of captions reflects a transmission problem on a specific day or the failure of the  {O-local broadcaster to distribute the programming with the captions intact. Id. Further, commenters state that   .movies on HBO can appear one day with clear, errorfree captions and be repeated on another  X -  =day with captions that are scrambled and unreadable.Z e yO-ԍAtlanta Hears Chapter/SHHH Comments at 3.Z Additionally, programs may have the   N"CC" logo indicating that they are closed captioned when they do not actually have the  X-captions.Xe yOU-ԍMary Clepper ("Clepper") Comments at 2.X  Xd-  Z91.` ` Moreover, there are often errors in captions, including misspelled words, incorrect   grammar, poor timing, inaccuracies and poor placement. Captions do not always match what the  X6-speaker is saying.S6e yO#-ԍBoston Chapter/SHHH Comments at 2.S Sometimes they are out of synchronization with the audio portion of the "6'2,-(-(ZZ"  X-  Kprogram.e {Oy-ԍId.; Burlington Chapter of North Carolina Association of the Deaf at 34. Accuracy is a problem, particularly with real time captioning.^Ze yO -ԍLeague for the Hard of Hearing Comments at 5.^ When the ENR type   of captions is used it is common for abbreviations, camera cues and anchor cues that appear on  X-  the teleprompter to be included in the closed captions.Ee yOm-ԍWGBH Comments at 31.E The result of such errors is garbled  X-captions, which one commenter points out are "a nuisance and sometimes funny."zze {O -ԍChertok Comments at 2. See also Boston Chapter/SHHH Comments at 2.z  X-  [92.` ` Some of the errors in captions noted above are likely due to captionwriter errors.   =It has been noted that even highly skilled captionwriters, with up to 99% accuracy rates, often   make up to two mistakes per minute. These mistakes occur either because of captionwriter's   error or the software mistranslation of the operator's keystrokes. Software mistranslation occurs   >when the software does not recognize the machine shorthand and the mistakes appear as a  X -phonetic rendering of the word.E e yO-ԍWGBH Comments at 32.E  X -  _\93.` ` Problems also occur because of inadvertent errors in the transmission of captions   =by the broadcaster, distributor, cable network, local station or cable system operator. In many   [cases, the captions have been stripped, moved to the wrong line of the VBI or flipped onto the   jwrong field of line 21 by maladjusted signal processing equipment. The critical technical steps   Zof a quality captioning service are accurate encoding, transmission reception and decoding of the   =signal. To avoid such errors, it is important that the captioned signal be monitored as it is fed,   monitored during the duplication process and checked to ensure that the equipment used is not   inadvertently stripping the captions, moving them onto the wrong line or placing them in the  X4-wrong field.y4e {O-ԍId. at 30. See also ASDC Comments at 4; NAD Comments at 22.y  X- IV.Video Description of Video Programming  X- A.` ` Introduction   X-  @]94.` ` Video descriptionZ. e yO#- =ԍSome commenters suggest that video description is an inaccurate term and this service should more properly  {OQ$-  <be called "audio description." See, e.g., Clark Comments at 4. We will use the term video description because it is the terminology used in the statute. 47 U.S.C. 613(g). is a more recent innovation than closed captioning. It provides   aural descriptions of a program's key visual elements that are inserted during the natural pauses   =in the program's dialogue. For example, it describes an action that is otherwise not reflected in"|(P ,-(-(ZZP"   Nthe dialogue such as the movement of a person in a scene. It was first used in theatrical   performances in the early 1980s, and since that time has been developed for television  X-  =programming primarily by WGBH and other PBS affiliates.e {OK- ԍWGBH has established the Descriptive Video Service to provide video description. See WGBH World Wide Web home page: http://www.boston.com/wgbh/pages/dvs/dvshome.html. PBS first tested broadcast video  X-  [description in 1988."e {O- >ԍAPTS Comments at 2. PBS went on to air the first nationally described program, American Playhouse's  yOX-"Sense and Sensibility" in 1990. The video description of a television program is most often transmitted   through the SAP channel. The SAP channel is a subcarrier that allows each distributor of video   to transmit an additional soundtrack. Essentially video distributors which utilize a SAP channel   allow the viewer to choose between the primary soundtrack and an additional, or secondary,   Ksoundtrack transmitted on the SAP channel for the program. In addition to video description, the SAP channel is also frequently used for alternative language programming.  X -  ^95.` ` This ancillary service is permitted under the Commission's rules so long as it  X -  jcauses no observable degradation to any portion of the visual or aural broadcast signal.l |e {O0-ԍSee 47 C.F.R.  73.646 and 73.682(a)(23)(ii) .l To   receive the service, the audience member must have a stereo television or a videocassette recorder   ("VCR") that is capable of receiving the SAP channel, or a television adapter for this channel. There are presently no regulatory requirements regarding video description.  X- B.` ` Audiences that Benefit from Video Description  Xb-  A_96.` ` The precise number of persons with visual disabilities likely to benefit from video  XK-  =description is difficult to estimate.]Ke {O -ԍSee, e.g., Audio Optics Comments at 1.] This is, in part, due to the wide differences in the degree   Mof visual disability. Indeed, many persons with sufficient vision to watch normal television  X-  =programming may still benefit from video description.e yOn- /ԍAmerican Foundation for the Blind ("AFB") Comments at 58. Narrative Television Network ("NTN") refers to these persons as the "hidden visually impaired." NTN Comments at 4. According to the National Center for  X-  >Health Statistics there are 8.6 million persons who are visually disabled. e yO - ԍNational Center for Health Statistics, Current Estimates from the National Health Interview Survey, 1994, Series 10, No. 193, at 93, Table 62. However, other   Kestimates of the population of persons with visual disabilities who would benefit most from video  X-  description range between eight and 12 million persons.ZP e yO$- yԍAFB Comments at 58 (estimating the population of visually impaired to be between eight and 10.8 million).  {O%-  But see American Council of the Blind ("ACB") Comments at 2 (estimating that there are probably at least 12 million Americans with visual disabilities who could potentially benefit from video described programming). Beyond the direct benefit to such   -persons, video description can relieve family and friends of persons with visual disabilities of the")r,-(-(ZZ"   task of providing on the spot descriptions while viewing programming, thereby essentially serving  X-as ad hoc describers.[e yOb-ԍWashington Metropolitan Ear Comments at 6.[  X-  `97.` ` Many of these individuals are children for whom educational programming with  X-  video description would offer significant benefits.|Xe {O-ԍAFB Comments at 9. See also Laurence Anne Coe ("Coe") Comments at 3.| Estimates suggest that up to 500,000 persons  X-  Zunder the age of 18 can be classified as visually disabled.e {O( - .ԍAFB Comments at 9. ABC Comments at 3. But see WGBH Comments at 3 (estimating that 45,000 school children are "legally blind"). Video description would allow these  Xv-  children to enjoy the same educational experience as their sighted peers.VvDe yOk -ԍAFB Comments at 9; ACB Comments at 3.V Finally, video   ydescription may allow parents with visual disabilities to participate more fully in their children's  XH-educational experience.iHe {O-ԍSee, e.g., Louis M. Smith ("Smith") Comments at 1.i  X -  a98.` ` As the population ages, an increasing number of people will become visually  X -  disabled as part of the aging process.[ f e yO-ԍWashington Metropolitan Ear Comments at 7.[ These people may also become increasingly dependent upon television for information, entertainment and companionship.   X -  b99.` ` Some sources have suggested that video description services can also offer  X -  iancillary benefits to nonvisually disabled persons. e {ON- ԍCoe Comments at 24. See also NTN Comments at 3. AFB cites the popularity of playbyplay sports broadcasting among sighted persons as support for this proposition. AFB Comments at 10. Video description may also benefit persons  X-  Zwith cognitive or learning disabilities.CP e yO-ԍAFB Comments at 9.C Furthermore, video description may offer an educational   opportunity for the sighted to improve their vocabulary and even writing skills by suggesting  Xb-  more creative and informative ways of describing a scene.:be {O -ԍId.: Persons without visual disabilities   may sometimes choose to passively "watch" television while engaged in other activities. These   persons, like those in the visually disabled community, are already partially served by   conventional television and television band radio receivers. However, their experience, like that"*r,-(-(ZZ"  X-  of people with visual disabilities, might be enriched through video description.e yOy- .ԍCoe Comments at 45. NTN asserts that 60% of their audience mail comes from sighted viewers who enjoy the programming. NTN Comments at 3. The widespread  X-availability of video description might increase this type of use. e yO- ԍInclusive Technologies Comments at 4. Anna Dresner ("Dresner") also suggests that the popularity of books   on tape hints at the possible popularity of video description among sighted viewers. Dresner Comments at 2.   wWashington Metropolitan Ear also suggests that such an application may be popular. Washington Metropolitan Ear   Reply Comments at 9. Interestingly, Turner Classic Movies has suggested that the video description soundtracks may   have some value as part of the books on tape market. Telephone Interview with Ken Schwab, Director of Programming, Turner Classic Movies (June 7, 1996)   X- C.` ` Methods of Distribution of Video Description  X-   c100.` ` Generally, video description service is provided using the SAP channel.Ee yO-ԍCEMA Comments at 7. E The   SAP channel allows for the delivery of a third audio track for a program in addition to the   monaural and stereophonic audio tracks. The transmission of the SAP channel is accomplished   with the use of a secondary carrier called a subcarrier. The ancillary audio (in this instance video   Ldescription) is transferred onto the SAP subcarrier through the use of a modulator. Therefore,   any program distributor wishing to deliver SAP would need to install an additional modulator at   the transmission facility. In comparison, closed captioning information is carried on the VBI   and does not require the use of additional equipment at the transmission facility. The VBI is   yavailable as an inherent feature of the Broadcast Television System Committee ("BTSC") video   [signal standard and is part of the transmission of a television signal, whereas the SAP channel   Lrequires the video distributor to generate a separate subcarrier containing the additional audio track.  Xb-  Cd101.` ` In order for a viewer to access the SAP channel, the consumer must have a  XK-  television or VCR equipped to receive the SAP channel.K( e yO$- ԍAudio Optics Comments at 1. Audio Optics also notes that stand alone SAP receivers were previously  {O-available but are no longer distributed. Id. Approximately 52% of American   households own SAPcompatible televisions, and 20% own VCRs capable of receiving the SAP  X-  >channel.F e yOP!-ԍCEMA Comments at 78.F A consumer who has a television or VCR with SAP capability can activate this   0feature to receive the video description or other audio, if available, in lieu of the primary soundtrack.  X-  $e102.` ` When the SAP channel is employed, the program can be transmitted with two   separate audio tracks. The additional track "follows" the main program signal through the"+,-(-(ZZp"  X-  distribution process."e {Oy- ԍSee An Investigation of Vertical Blanking Interval (VBI) Audio Encoding for Technical Distribution of  {MC-  Television Programs Containing a Special Soundtrack for Blind and Visually Impaired Viewers, Final Report,   CPB/WGBH National Center for Accessible Media, Department of Education, National Institute of Disability Rehabilitation and Research Grant #H133C10223, February 28, 1995, at 2.  For example, the SAP channel as currently used by PBS for its video   description follows the main program signal from the network's master control facility and   {satellite distribution system to the local station's broadcast facility and through the local   transmitter. The accommodation of this additional soundtrack typically requires changes to the   network and local station plant wiring and equipment. At the local transmitter, the distributor   must have the technical facilities to remodulate the subcarrier signal to include the SAP channel  Xv-information.Hve {O -ԍId. at 3. H   XH-  _f103.` ` Video description may also be provided as an "open" service with the descriptive   narrative incorporated as part of the regular sound track. Narrative Television Network ("NTN")   is currently providing nearly 20 hours per week of such programming over more than 1000 cable  X -  xsystems.C De yO-ԍNTN Comments at 4.C NTN states that this method has the advantage of being available without the special  X -  equipment required to access the SAP channel.: e {Oq-ԍId.: One potential disadvantage to this method is   that the additional narrative may act as a distraction to the wider, sighted audience who wish to watch programming in a conventional manner.  X-  g104.` ` In Canada, video description has been provided using a Radio Reading Service.   >AudioVision Canada transmits descriptive audio separately from regular audio over a radio   reading service available on most Canadian cable television FM systems. This allows the   consumer to receive either the video signal with the primary soundtrack or the video description   soundtrack alone, but not both. For this reason, this technique works best for those not interested   >in or able to see the video portion of the program, since only one television channel can be   accessed at a time. This would partially undermine the value of video description by not   yallowing persons with visual disabilities to enjoy television programming with their friends and   family. However, this technique, as with open video description, allows the audience access to  X-the descriptive narrative without special equipment.{Zf e {O!- ԍAFB Comments at 4. See also ACB Comments at 2. ABC also asserts that it may be possible to deliver   descriptive narrative audio using the VBI, or over telephone lines, but provides no further information. NTN also mentions this possibility but fails to provide specifics. NTN Comments at 5.{  X-  h105.` ` Finally, video description may also benefit from digital television technology. This   technology may allow operators to provide the viewer with a choice between video description   and alternative language programming because it may permit the transmission of multiple audio"e, ,-(-(ZZ"  X-  tracks.De yOy-ԍNAB Comments at 14.D According to NAB, digital television may also allow a viewer to listen to more than   0one audio channel at the same time. This feature may lower the cost of providing video   ^description by allowing the consumer to select both the main audio program with the   conventional soundtrack and a descriptive narrative video description audio program synchronized   with the natural pauses in the conventional soundtrack simultaneously. This would allow the   Mproducer to eliminate the costly process of mixing the main soundtrack with the descriptive  Xv-narrative.EvXe yO -ԍWGBH Comments at 30.E  XH- D.` ` Cost of Video Description  X -  i106.` ` Estimates for the cost of providing video description vary widely. The service is   >labor intensive and the actual costs seem to vary considerably depending on the particular  X -  project.j e {O-ԍNCTA Comments at 16. See also WGBH Comments at 19.j NCTA estimates that the cost of providing descriptive video service for a full length  X -  feature film can range up to $10,000.E ze yO-ԍNCTA Comments at 16.E However, the NTN estimates the cost of high quality   narrative programming, when included as part of the primary audio track, to be between $1000  X -  =and $1200 per program hour. e yOb- MԍNTN Comments at 6. NTN also asserts that digital technology will bring costs down further and shorten  {O*-the turn around time required. Id. In addition to NCTA and NTN, other commenters address the   issue of cost. PBS estimates the cost at one and one half times the cost of closed captioning or  Xy-  ]$3000 per program hour.Eyd e yO-ԍPBS Comments at 3. E Audio Optics estimates that the cost alone for adding video   kdescription to a one and a half hour feature film would be about $4000, exclusive of profit or  XK-overhead.LK e yO-ԍAudio Optics Comments at 3.L This would equal about $2667 per program hour.  X-  j107.` ` Video description also entails increased distribution costs. e yOR!- >ԍClosed captioning does not involve additional distribution costs because the VBI is an integral part of the transmitted television signal. The costs associated with closed captioning are for the production of the captions. Currently, the   commercial broadcast networks do not have the facilities to distribute the SAP channel to   Kaffiliated stations for retransmission. In order to distribute programming with SAP channel audio,   the network must encode the SAP signal into the transmission to the satellite using a costly digital   encryption system. The encrypted signal must be decrypted when received by the ground station.   ABC, while unable to provide precise estimates, states that the required upgrades at the network"-,-(-(ZZ"   Kproduction facilities and the over 200 affiliated stations could cost "many hundreds of thousands  X-  of dollars."Ve yOb-ԍCapital Cities/ABC Comments at 1516.V NBC and CBS estimate the total cost of retrofitting their network facilities and   infrastructure with equipment to provide video description using a SAP channel to be at least  X-several million dollars.iXe {O-ԍNBC Comments at 15. See also CBS Comment at 38. i  X-  k108.` ` After receiving the decrypted signal from the networks the ground station must   encode the SAP signal into its signal using a SAP generator. The commercial networks estimate   that individual stations that do not have SAP reception and decoding capability would have to  XH-  spend between $30,000 and $1 million for each local station to obtain it. \He {O - ԍNBC Comments at 15 (estimating the cost of the upgrade to be between $30,000 and $100,000). See also  yO -  CBS Comments at 38 (estimating the cost to be between $100,000 and $1 million). According to CBS only about  {Ou-10% of stations broadcast through the SAP, while slightly more, perhaps 20% of CBS affiliates do so. Id.Ĺ According to the   commercial broadcast networks, upgrades to current facilities necessary to provide video  X -description would be wasted after conversion to digital television.~  e yO-ԍCapital Cities/ABC Comments at 15; NBC Comments at 16; CBS Comments at 4041.~  X -  ~l109.` ` Cable systems are technically able to transmit information on the SAP channel.   However, cable operators face the same problems as broadcast stations regarding the reception   <and retransmission of SAP signals. In the case of cable the problems are somewhat compounded   because the cable system requires a separate SAP generator for each channel it wishes to  X-distribute with the SAP channel. e yO-ԍLeaming Industries, Inc., SAP1 and SAP2 Second Audio Program Generators (1996).  Xb- E.` ` Funding for Video Description  X4-  `m110.` ` To date, the primary source of funding for video description has been through   government grants administered by the PBS, National Endowment for the Arts, National Science  X-  Foundation and especially the DOE. . e yO- >ԍWGBH Comments at 23. WGBH's Descriptive Video Service receives about 65% of its budget from such  {O -sources. Id. The DOE currently allocates $1.5 million for video  X-description or about $0.19 per American with a visual disability. Z e yO(#- ԍCoe Comments at 45. This calculation is made assuming the population of persons with visual disabilities   wis 8 million which is the most conservative estimate of the number of persons with visual disabilities. Coe also notes  {O$-that this compares with about $0.35 spent on closed captioning for each person with a hearing disability. Id.Ľ ". ,-(-(ZZ"Ԍ X-  an111.` ` In addition to public funding, private sources have begun to support video   jdescription. WGBH's Video Description Service receives 35% of its funding from corporations  X-  and foundations, home video revenues and individual viewer donations.Ee yOK-ԍWGBH Comments at 24.E Video description also   has begun to enjoy some success as a commercially viable product as witnessed by the success   of NTN, Kaleidoscope and the recent introduction of described programming on Turner Classic  X-  Movies.Xe {O-ԍThese commercial offerings are discussed more completely below. See  114116 infra. However, even these commercial projects benefit from public funding. For instance,  Xv-  NTN has received government grants.Gve yO -ԍNTN Comments at 78. G Turner Classic Movies has developed its video   description programming in partnership with WGBH, which as noted receives 65% of its funding  XH-from government grants.Hze yOs- /ԍTelephone Interview with Ken Schwab, Director of Programming, Turner Classic Movies (June 7, 1996)  {O;-("Schwab Interview"). See also note 268 supra.  X - F. ` ` Current Availability of Video Description  X -  o112.` ` Public broadcasting has contributed substantially to the development and  X -  availability of video description.C e yOZ-ԍAPTS Comments at 3C PBS currently distributes video description on 22 programs,  X -  including Mister Rogers' Neighborhood, Masterpiece Theater and Mystery.QZ d e yO- ԍDVS Update, August 1995, WGBH Descriptive Video Service. However not all episodes incorporate video   description. In addition to describing public television programs, DVS is used for describing popular movies on  {Oc-home video. Id.Q PBS's video   ydescription programming is currently being broadcast by 130 PBS stations reaching 71% of the  X-  U.S. population. e yO- ԍAPTS at 3. Other public television stations are in the process of upgrading their equipment for SAP  {O-capability and the ability to carry video description. Id. PBS also provided video description for the 1993 presidential inauguration,  X{-the only example of live video description to date.E{e yO -ԍWGBH Comments at 12.E  XM-  p113.` ` There is no video description on the commercial broadcast networks.gMpe yOn#-ԍNBC Comments at 15; Capital Cities/ABC Comments at 14.g According   Lto the networks, providing video description would be prohibitively expensive and logistically  X-  .onerous.Ue {O&-ԍSee, e.g., NBC Comments at 15.U For instance, NBC observes that PBS is able to describe some of its programming"/,-(-(ZZ"  X-  because it receives the master tape two to three weeks in advance.De yOy-ԍNBC Comments at 15.D In contrast, commercial  X-networks state that they receive their master tapes two to three days in advance.:Xe {O-ԍId.:  X-  @q114.` ` Kaleidoscope, the cable programming network devoted to the needs of persons with   disabilities, provides movies that include video description. Kaleidoscope's programming  X-schedule includes between two and two and one half hours of such movies each week.We {O( -ԍPrince Interview supra note 174.W  X_-  2r115.` ` In addition to Kaleidoscope, NTN also provides video description.C_|e yO -ԍNTN Comments at 8.C NTN does   not use the SAP channel but rather uses "open video description" incorporating the descriptive  X1-  narrative into the regular soundtrack.@1 e {O-ԍId. at 4.@ NTN programming is distributed by satellite, cable and   broadcast. Cable subscribers who receive NTN's programming as part of their basic service are   Lthe majority of its audience. NTN maintains that there is some evidence that the availability of   \NTN programming acts as an inducement to persons with visual disabilities to subscribe to  X -  Mcable.; e {O$-ԍId. ; NTN also cites its experience in Canada where it is usually distributed as part of a   premium channel. It asserts that its experience there indicates that the availability of such  X -programming may induce persons with visual disabilities to take premium services.: 0 e {O-ԍId.:  Xy-  ns116.` ` Turner Classic Movies began airing movies with video description narrative as its  Xb-  /"DVS Showcase" series.Xb e {O-ԍSchwab Interview supra note 273. X This series is aired weekly and runs for about two hours every   jSunday afternoon. Turner Classic Movies' efforts are a joint project with WGBH and currently  X4-  include 12 titles, such as Casablanca and the Maltese Falcon.6 Z4T e {O9!- ԍId. Turner Classic Movies is responsible for production and presentation costs while WGBH's Video   Description Service is responsible for the descriptive narrative. A more precise break down of the costs is not available. 6 Turner Classic Movies plans to  X-add 15 more video description titles this fall.:!ve {OD%-ԍId.: "0!,-(-(ZZ"Ԍ X-  t117.` ` Video description poses varying degrees of additional difficulty for other  X-  MVPDs.r"e {Oy-ԍSee generally SBCA Comments at 1011; WCA Comments at 810.r DTH satellite systems face the same problems as other distributors. For example,   these providers express general concerns regarding the availability of described programming, a   jconflicting demand for bilingual programming on the SAP channel and the possible expense of  X-  creating and adding descriptive narrative.H#qe yO-ԍSBCA Comments at 1011.H HSD is not capable of passing through the SAP  X-  channel.$e yO? - [ԍInterview with Robert M. Zitter, Senior Vice President, Technical Operations, HBO (June 26, 1996) ("Zitter Interview"). Using current technology many MMDS operators are unable to decode SAP  Xv-  programming without upgrading a significant portion of their equipment.D%vYe yO -ԍWCA Comments at 8. D While the systems   are generally capable of passing the SAP channel through, many of the current set top boxes are  XH-  .not capable of decoding the signal.W&He {O-ԍZitter Interview supra note 292.W Similarly, SMATVs are able to transmit and receive the   [SAP channel but are faced with the same limitations of the current SAP channel technology as  X -other MVPD operators.:' {e {OF-ԍId.:  X -  u118.` ` With the exception of the service provided by PBS, Kaleidoscope, NTN and Turner   kClassic Movies noted above, video description, as such, is unavailable on local, regional or   syndicated broadcast television and local or regional cable services. Thus, persons with visual   =disabilities must rely on these limited video description services or the information that can be gleaned from the conventional television soundtrack.  Xb- G.` ` Obstacles to Video Description  X4-  v119.` ` Barriers to video description can be divided into two broad categories: technical   issues and obstructions inherent to the service. Technical concerns include the unavailability of   Kthe SAP channel or the inability of some broadcast and cable networks to distribute programming  X-with the SAP channel.D( e yO -ԍNBC Comments at 15.D  X-  $w120.` ` Other barriers to more widespread use of video description are inherent to the  X-  service. For instance, the service requires development of a second script.E) e yO$-ԍNCTA Comments at 14.E The development"1- ),-(-(ZZ"   yand production of this second script can add considerably to both the production time and the  X-budget required to produce a program.U*e {Ob-ԍSee, e.g., NBC Comments at 15.U  X-  x121.` ` In addition to the increased costs, some commenters suggest that there may be   significant copyright issues associated with the addition of descriptive narration to video  X-  [programming.H+Ze yO-ԍMPAA Comments at 1011.H Whereas closed captioning is essentially a verbatim transcript of the original   jscript, video description necessarily involves creative decisions and thus may create a distinct  X_-  jderivative work.^,_e {O -ԍId. See also NAB Comments at 13.^ A derivative work is an addition to a preexisting work which transforms or  XH-  otherwise modifies the original work.p-H|e {Ou-ԍId. (citing Nimmer on Copyright,  3.03 (1995)).p To the extent that video description is subject to   zcopyright laws, an unauthorized video description of an underlying work might constitute a  X -  copyright infringement.:. e {O-ԍId.: As a consequence, commenters assert that, absent a statutory   exception, mandatory video description regulations may conflict with the copyright holders'  X -exclusive rights to create derivative works from their copyrighted works.:/ e {O=-ԍId.:  X -  y122. ` ` Advocates for persons with visual disabilities argue that copyright issues can and  X -  will be resolved by the marketplace if video description requirements are put into place.a0 2 e yO-ԍWashington Metropolitan Ear Reply Comments at 6.a   According to this line of reasoning, video description will simply become a routine part of  Xy-licensing agreements if the service is required.:1y e {O-ԍId.:  XK-  z123.` ` Furthermore, because video description requires breaks in the dialogue to permit   the insertion of the description, some programming may simply not be amenable to video   Ndescription. For instance, programming with a great deal of dialogue may not permit the   additional description while a classical music concert or popular music video might not be   Mappropriate for video description because the descriptive narrative would interfere with the  X-  primary substance of the programming.V2T e {O$-ԍSee, e.g., ALTV Comments at 16.V In other cases, programming such as an action"22,-(-(ZZ"   adventure movie may contain so much action that an ongoing video description could not keep  X-up with the action even if gaps in the dialogue existed.E3e yOb-ԍALTV Comments at 16.E  X-  A{124.` ` Similarly, other forms of programming already contain considerable narrative and,   therefore, video description may be unnecessary. Playbyplay sports programming and talk   shows are often cited by programmers as examples of programming which do not warrant video  Xv-  Zdescription.X4vXe {O -ԍSee, e.g., HBO Comments at 1011.X However, several commenters on behalf of the visually disabled community argue   that playbyplay does not sufficiently address the needs of people with visual disabilities. For   instance, a playbyplay announcer excitedly interjecting "Wow did you see that?" does not  X1-  provide information to a viewer with visual disabilities.D51e yO -ԍAFB Comments at 14.D Other commenters suggest that video  X -  description is not necessary for sports if a comparable radio broadcast is available.E6 ze yOE-ԍSmith Comments at 2.E Still other   >commenters respond that a radio broadcast is only a substitute for video description if one  X -  assumes persons with visual disabilities were watching sports in isolation.D7 e yO-ԍAFB Comments at 14.D These commenters   -argue that a significant benefit of video description is that it allows people with visual disabilities   to enjoy television programming in social situations and to interact with their sighted friends and  X -  family members.:8 e {O-ԍId.: Moreover, WGBH notes that even radio commentary is developed primarily  X-with sighted people in mind and may omit information useful to people with visual disabilities.E9, e yOm-ԍWGBH Comments at 28.E  Xb-  n|125.` ` Finally, many stations already use the SAP channel for other purposes. The most   common purpose cited is bilingual programming, with 4.7% of local stations reported to be using   the SAP channel to provide second language programming to reach 28% of television  X-  households.: e {O - ԍSee, e.g., NBC Comments at 1516; Audio Optic Comments at 1; NAB Comments at 12; HBO Comments at 10 Other uses include local stations using the SAP channel to provide weather  X-  bulletins, news or the local farm report.G;e yO#-ԍNAB Comments at 1213.G A number of stations carry another feed of their main   audio channel on the SAP channel to avoid consumer confusion if the SAP channel were  X-  inadvertently selected.<<e {O/'-ԍId. < Such uses usually serve larger communities and necessarily compete"38<,-(-(ZZ&"  X-  =with video description.X=e yOy-ԍNBC Comments at 15; NAB Comments at 12.X Commenters indicate that to the extent that stations believe that the   demand for such uses of SAP capabilities is greater than the demand for video description, they   can be expected to preempt video description at least as long as SAP remains a comparatively  X-limited resource and is not mandated by law or regulation. >"Xe {O- ԍNAB Comments at 1213. See also AFB Comments 15. WGBH notes however, that situations have arisen   where a PBS program has both a video description and a Spanish language sound track available. To date, stations   have either elected to air the one soundtrack most useful for their audience or have aired the program more than once with each sound track being made available on subsequent airing. WGBH Comments at 29.   X-  }126.` ` It appears that digital television may represent a solution to the problem of limited   SAP capacity. Digital television allows video distributors to compress considerably more   information within a given amount of bandwidth. Digital television may allow broadcasters to   transmit several SAP like signals in conjunction with a program thereby permitting the consumer   to choose between the conventional soundtrack, nonEnglish language soundtracks or video  X -  description.k?Z Be {O - ԍSee CEMA Comments at 8 9; WGBH Comments at 29. Bell Atlantic asserts that it is already developing   Ythe infrastructure to allow the digital carriage of video description as an additional audio channel in its systems. Bell  yO-Atlantic Comments at 4. k However, this would necessitate the consumer having a digital settop box or  X -digital television capable of accessing the digital video description.@" d e yO- kԍWGBH Comments at 2930 (recommending that the Commission require this capability be included in all  {O-  Ydigital televisions or settop boxes.) But see WCA Comments at 910 (recommending that MMDS operators not be   required to provide digital settop boxes but rather to provide consumers wishing to receive video description with such boxes for an additional charge).   X - H.` ` Statutory Considerations  X -  ~127.` ` Under Section 713(f), the Commission is required to assess appropriate methods  X-  and possible schedules for phasing video description into the marketplace.GAN e yO-ԍ47 U.S.C.  613(f).G We also are   ]required to assess technical and quality standards for video descriptions, a definition of   programming for which video descriptions would apply and other relevant technical and legal  XK-issues.:BKe {O!-ԍId.: In this section, we examine each of these matters.  X-  }128.` ` Due to their limited experience with video description and the technical difficulties   in providing the SAP with video description today, industry commenters generally assert that it"4pB,-(-(ZZ "  X-  is premature to consider implementation of video description requirements.~CZe {Oy- LԍSee, e.g., NCTA Comments at 14, WCA Comments at 89; ALTV Comments at 16; HBO Comments at 12;   SBCA Comments at 1011. SBCA also suggests the Commission explore whether alternatives may exist to make television more accessible to people with visual disabilities but offers no specific proposals.~ Several commenters  X-  suggest that video description should be left to marketplace demands.De {O-ԍSee, e.g., HBO Comments at 11; CEMA Comments at 7; MPAA Comments at 9.  Some commenters   suggest that as the population ages, market demand will ensure that video description will become  X-  more widely available.DE|e yO -ԍCEMA Comments at 7.D Other commenters assert that as household penetration of SAP   zcompatible televisions and VCRs increase, the marketplace can be expected to respond with   =increased product for the larger number of viewers with visual disabilities capable of receiving  Xv-video described programs.DFv e yO3-ԍMPAA Comments at 9.D  XH-  a129.` ` Still other commenters, while recognizing a need for video description, urge   various exemptions, such as certain kinds of programming where video description would be   redundant or overly burdensome, and certain kinds of programmers or video distributors that  X -  might face undue hardship if required to provide video description service.jG e {OP-ԍSee, e.g., ALTV Comments at 15; NAB Comments at 13.j Among these   suggested exemptions are sports programming, local access programming and programming that  X -already consists primarily of a discussion or narrative.iH . e {O-ԍSee, e.g., ALTV Comments at 15; NAB Comments at 13i  X -  130.` ` In marked contrast to industry commenters, persons who would substantially   benefit from the availability of video description and organizations that serve people who are  Xy-  xvisually disabled urge that the service be broadened and made more generally available.Iy e {O-ԍSee e.g., Coe Comments 7; Metropolitan Washington Ear Additional Comments at 1; AFB Comments 15. These  Xb-  commenters advocate a broad range of strategies from mandatory requirements6JXbR e yOe- ԍNTN Comments 89 (urging that reasonable requirements will allow both the industry and consumers to   benefit); Pennsylvania Council of the Blind, Washington County Chapter Comments at 1; Washington Metropolitan Ear Comments at 10.6 to strong  XK-  economic incentives as well as various combinations of mandates and incentives.KKre {On#- \ԍSee, Coe Comments 7; F&V at 7; Metropolitan Washington Ear Additional Comments at 1; AudioVision Comments at 2. While several   ycommenters offered these suggestions, few offered any specifics regarding the implementation of such incentive programs. "5K,-(-(ZZd"Ԍ X-  $131.` ` The American Council for the Blind ("ACB") urges that an increase in Federal  X-  funding is necessary to further the development of video description.CLe yOb-ԍABC Comments at 3.C At the same time ACB   contends that strict video description requirements should be applied across the industry, to  X-  producers, distributors and program providers.?MXe {O-ԍId at 6.? According to the American Federation for the   Blind ("AFB"), there is no justification for any blanket exemption for any class of programmer   or distributor. Rather, AFB suggests that the Commission adopt an undue burden standard similar  Xv-  to the standard used for closed captioning.DNve yO -ԍAFB Comments at 13.D Under such a standard, the Commission would be   required to consider the nature and cost of adding video description, the impact on the provider   or program owner, the financial resources of the program owner and the type of operations of  X1-  Zthe provider or program owner.GO1ze yO\-ԍ47 U.S.C.  613(e).G ACB recommends that in establishing standards, priorities and   schedules for implementing video description requirements, the Commission should consult with   an advisory board composed of consumers with visual disabilities, industry representatives and  X -individuals with video programming experience.CP e yO-ԍACB Comments at 8.C  X -  _132.` ` Washington Metropolitan Ear suggests that while the marketplace may ultimately   provide widespread use of video description, a government mandate is necessary in order to  X-  develop the market for this service.QXe yO- ԍ Washington Metropolitan Ear Comments at 10. Washington Metropolitan Ear compares video descriptions   xto "many socially useful programs that turn out to be commercially remunerative (recycling, non discrimination, etc.)", in that a federal mandate may be required to "break the industry out of its rut."  Washington Metropolitan Ear proposes that all program  Xy-  Zcarriers be required to have the capability of relaying video description.:Ry e {O-ԍId.: Noting that the library   of video described programming currently available is limited, Washington Metropolitan Ear also   =proposes a five year phase in period before video description becomes a required part of most  X4-programming.:S4L e {O1!-ԍId.:   X-  A133.` ` In addition to addressing potential regulatory requirements, commenters propose   various alternative means of expanding the availability of video description services. These  X-  proposals range from increased government funding to tax incentives.Te {Og&-ԍSee, e.g., F&V Comments at 7; Metropolitan Washington Ear Additional Comments at 1. In some cases, the   positions of these commenters were somewhat contradictory. For instance, NTN argues that"6pT,-(-(ZZ"   video description is economically viable in the marketplace, while maintaining that increased  X-  government funding will be necessary to increase the availability of video description.Ue yOb- yԍNTN Comments at 78. NTN also favors "reasonable" requirements mandating video description. See 130  {M*-supra. US   West proposes that private sources and the marketplace should be the primary funding vehicles  X-  for video description.GV e yO-ԍUS West Comments at 6.G To the extent that public funding is necessary, US West proposes that   the money should come from a percentage of locally collected fees, such as cable franchise fees   charged by local governments. US West further proposes that the government should provide   /additional resources to video production companies that insert video description into their   -programming, and also to those companies and individuals that provide private support, through  XH-the use of tax credits or deductions as applicable.:WHe {O -ԍId.:  X -  134.` ` Some industry commenters express concern that any video description requirement   to be recommended or ultimately imposed should require the producer of the programming rather   ithan the video distributor to include the descriptive narrative. These commenters argue that such   {a requirement is more efficient than requiring individual video distributors to provide the  X -  descriptive narratives.fX Be {O-ԍSee, e.g., ALTV Comments 16; F&V Comments at 5.f Similarly, industry commenters urge that any requirements mandating  X -  jthat programming include video description be imposed only on a prospective basis.HY e yO,-ԍMPAA Comments at 1113.H These   commenters argue that requiring video description of the enormous libraries of existing  Xy-programming would be unduly onerous and impose an impossible burden on the industry.:Zyd e {O-ԍId.:  XK-  135.` ` Several commenters address the issue of quality standards. These commenters   believe that video description has an inherently subjective aspect and that the issue of quality is  X-  not as easily measured as in the case of closed captioning.X[ e yO-ԍNTN at Comments 9; WGBH Comments at 29.X Whereas the quality of closed   >captioning can be described, at least in part, in terms of errors per hour of programming the   quality of video description is, in large measure, a matter of the artistic choices made in   .developing a descriptive narrative such as what is described and how accurately the narrative  X-  conveys the experience enjoyed by a sighted viewer.:\ e {O$-ԍId.: Nevertheless, these commenters are   -adamant that video description address the actual needs of persons with visual disabilities rather   than the needs perceived by the sighted community. In order to ensure this, these commenters"7\,-(-(ZZ"   Zurge that audience testing be required or that a standards board composed of persons with visual  X-disabilities be created.]"e {Ob- ԍSee, e.g., Audio Optics Comments at 6 (recommending that audience testing ensure that video description   is responsive to the needs of the sightless); ACB Comments at 7 (recommending that the Commission establish an   advisory committee composed of blind consumers, individuals with experience in video programming, and industry representatives to establish standards).  X-  136.` ` Some commenters suggest that any regulatory action addressing video description  X-  should be on a parity with closed captioning.U^e {O -ԍSee, e.g., NTN Comments at 10.U AFB proposes that the standards for video  X-  -description and closed captioning be the same, including appropriate undue burden tests.G_De yO -ԍAFB Comments at 1315.G Bell   Atlantic suggests that the same considerations that are of concern in developing closed captioning  X_-  standards must be addressed in recommending any regulations for video description.M`_e yO-ԍBell Atlantic Comments at 3.M WGBH   [suggests that video description in its present state should be treated in much the same way as   -closed captioning is currently treated on cable systems, that is, if it is part of the original program  X -source it must be included if technically feasible.a d e {O/-ԍWGBH Comments at 29. See also 47 C.F.R.  76.62(c) (Manner of Carriage).   X -  137.` ` Several commenters suggest that emergency information provided using captioning  X -  jacross the bottom of the screen without audio is of special concern.b\ e {O|- ԍSee, e.g., Smith Comments at 1; AFB Comments at 16. See also Pennsylvania Council of the Blind citing  {OF-  school closing information, weather warnings, election results, sports scores and lottery numbers.  See Petition to Revise Part 73.1250(h) of the rules (filed Feb. 23, 1996).  These commenters cite   the public safety needs to provide both sighted people and persons with visual disabilities with  X -  important information.:c e {Or-ԍId.: AFB proposes that such information be given priority in any  X-requirement implementation schedule that the Commission adopts.Ede yO-ԍAFB Comments at 16. E  Xb- I.` ` Conclusion  XK-  X4-  138.` ` In enacting Section 713 of the Act, Congress intended to ensure video accessibility   to all Americans, including individuals with visual disabilities. Video description is an emerging   service that currently enjoys only limited availability. Congress has directed the Commission to   iassess the appropriate methods and schedules for phasing video description into the marketplace   [and to address certain technical and quality standards issues. The present record on which to"8<d,-(-(ZZ"   assess video description, however, is limited, and the emerging nature of the service renders   definitive conclusions difficult. Moreover, with the exception of the Metropolitan Washington  X-  -Ear's proposal to phase in video description within five years,Vee {OK-ԍSee 132 supra.V commenters did not provide any   guidance regarding the implementation of video description of video programming in terms of   time frames, methods or standards. Nevertheless we believe that the development of rules for   closed captioning, which is more widely available, can provide a useful model for the process of   yphasing in broadened use of video description. The nature and speed of the process for video   description remains dependent on the resolution of certain technical, funding, legal and cost issues, as described below.  X -  139.` ` Many broadcast television stations are not yet equipped to transmit a SAP signal.    These stations tend to be in smaller markets with a smaller economic base to support increased   [costs. Other MVPDs also currently do not transmit or decode a SAP signal. Advanced digital   technologies, including specifically those used in broadcasting, direct broadcast satellites, MMDS   ("wireless cable"), cable and wireline "open video systems" appear capable, when joined with   digital receivers, of transmitting a separate channel. In particular, advanced digital television   could make the distribution of additional audio channels feasible and thereby eliminate the   conflict currently existing with other audio channel uses (e.g., second language). Any schedule   /for the full deployment of video description is dependent, in part, on the implementation of advanced digital technologies.  X-  P140.` ` In addition to these technical problems, funding remains a fundamental issue that   will effect any schedule for the widespread use of video description. Currently, given the costs   involved, it appears unlikely that advertising support alone will be sufficient to fund this service.   Irrespective of the level and source of funding, it appears desirable to phase in service over a   yperiod of years. We believe that initial requirements for video description should be applied to   new programming that is widely available through national distribution services and attracts the   largest audiences, such as prime time entertainment series. Over a period of several years, video   description should be phased in for programming with more limited availability, including   services distributed in limited areas, and programming that attracts smaller audiences, such as   daytime shows. Lower priority for video description should be given to programming that is   primarily aural in nature, including newscasts and sports events. Phasing in video description in   =this manner would follow the model of the development of closed captioning. A more specific   schedule for increasing the availability of video description is dependent on the nature of the   support mechanism selected. In this regard, Congress could consider increasing funding   ymechanisms for pilot programming and seed money for joint government/industry projects and   could encourage the incorporation of video description in program production. Congress could use the development of closed captioning as a model for broadening video accessibility.  X#-  P141.` ` Additionally, there are certain legal issues, such as copyright matters, that remain   yunresolved and are likely to require a Federal reassessment of the applicability of existing laws. "h$9Ze,-(-(ZZF#"   The copyright issue might be resolved through private negotiation with respect to newly produced   jmaterial as part of the initial production process. The law, however, may need to be clarified to   permit the addition of descriptions without copyright owner approval to older, previously   \published programming by parties down the distribution chain from the original production process.  Xv-  142.` ` Therefore, we believe that the best course is for the Commission to continue to   collect information and monitor the deployment of video description and the development of   <standards for new video technologies that are likely to affect the availability of video description.   jWe intend to seek additional information and data that will permit a better assessment of video   description in conjunction with our 1997 report to Congress assessing competition in the video   [marketplace. This annual report is submitted to Congress in compliance with Section 628(g) of   the Act, 47 U.S.C. 548(g). In the context of this report, the Commission will be able to gather   and evaluate information regarding the deployment of SAP channels and digital technology that   lwill enable video providers and programmers to include video description. Persons with   -disabilities and the video programming industries will be able to report to the Commission on any   Zdevelopments to coordinate efforts in new technology standard setting and funding mechanisms.   In seeking more information, we intend to continue to focus on the specific methods and   zschedules for ensuring that video programming includes descriptions, technical and quality   standards and other relevant legal and policy issues. Simultaneously, we will monitor the   -deployment of video description through voluntary efforts and the development of standards for   new video technologies that will afford greater accessibility of video description. Based on a   \more complete record, we expect to be able to better assess those issues that were not fully addressed through this proceeding.  X- V.ADMINISTRATIVE MATTERS  X-  143.` ` This Report is issued pursuant to authority contained in Sections 4(i), 4(j), 403 and 713 of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 403 and 613.  XP-  q144.` ` It is ORDERED that the Secretary shall send copies of this Report to the   yappropriate committees and subcommittees of the United States House of Representatives and United States Senate. ` `  hh,VFEDERAL COMMUNICATIONS COMMISSION ` `  hh,VWilliam F. Caton  XU%-` `  hh,VActing Secretary "U%:e,-(-(ZZ $"  X-HAPPENDIX l  X--List of Commenters  lU  X-Comments  Xv-1.A&E Television Networks  X_-2.ALDA/Potomac  XH-3.Alexander Graham Bell Association for the Deaf, Inc.  X1-4.Alliance for Community Media  X -5.Aloha State Association of the Deaf  X -6.American Academy of Audiology  X -7.American Foundation for the Blind  X -8.American Society for Deaf Children  X -9.Joan Andrews  X -10.Association of America's Public Television Stations  X-11.Association of LateDeafened Adults  Xy-12.Association of Local Television Stations, Inc.  Xb-13.Atlanta Hears Chapter/Self Help for Hard of Hearing People  XK-14.Audio Optics, Inc.  X4-15.AudioVision, Inc.  X-16.Bell Atlantic  X-17.Boston Chapter of Self Help for Hard of Hearing People  X-18.Broward County Library Access Services  X-19.Dick Burkhalter  X-20.Burlington Chapter of North Carolina Association of the Deaf  X-21.Californians for Television Access  X-22.Cape Organization for Rights of the Disabled  X|-23.Capital Cities/ABC, Inc.  Xe-24.Caption Database, Inc.  XN-25.CaptionMax  X7-26.Joan Cassidy  X -27.CBS Inc.  X -28.Barbara Liss Chertok  X-29.City of St. Louis Communications Division  X-30.Joe Clark  X -31.Mary Clepper  X!-32.Laurence Anne Coe  X"-33.XColorado Assistive Technology Project, DakotaLink (South Dakota Tech Act Project),(# XX` ` Georgia Tools for Life, Hawaii Assistive Technology Training and Service, Iowa Program for Assistive Technology, Louisiana Assistive Technology Access Network, Maine Consumer Information and Technology Training Exchange (CITE), Maryland Technology Assistance Program, Massachusetts Assistive Technology Partnership, Minnesota System of Technology to Achieve"#';e,-(-(ZZ%" Results (STAR) Program, Missouri Assistive Technology Project, New Hampshire Technology Partnership Project, Oklahoma ABLE Tech, Oregon Technology Access Through Life Needs, Pennsylvania's Initiative on Assistive Technology, Rhode Island Assistive Technology Access Project, Texas Assistive Technology Partnership, WisTech (Wisconsin Assistive Technology Program)(#`  Xv-34.Consumer Action Network  X_-35.Frank P. Corsica  XH-36.Corporation for Public Broadcasting  X1-37.Jeannette Costa  X -38.Council of Organizational Representatives  X -39.Deaf Counseling, Advocacy and Referral Agency  X -40.Disability Law Center, Inc.  X -41.Sally Dodge  X -42.Gerald Dominick  X -43.Anna Dresner  X-44.Kathy Dunn  Xy-45.EEG Enterprises, Inc.  Xb-46.Electronic Industries Association, Consumer Electronics Manufacturing Association  XK-47.David S. Evans  X4-48.F&V Channel, L.L.C.  X-49.Fairfax Cable Access Corporation  X-50.Mary Ann Foohey  X-51.Gallaudet University's Technology Assessment Program  X-52.Dan Glisson  X-53.Stuart and Marilyn Gopen  X-54.Great River Valley Chapter of the Coalition of Citizens with Disabilities in Illinois  X-55.Mildred D. Helyer  X|-56.Home Box Office  Xe-57.Lillian and Glenn E. Hoshauer  XN-58.Inclusive Technologies  X7-59.Jerald M. Jordan  X -60.Lansing School District  X -61.League for the Hard of Hearing  X-62.Willis J. Mann, Telecommunications Access Program, Maryland Department of ` ` General Services  X -63.Massachusetts Commission for the Deaf and Hard of Hearing  X!-64.MCAHI  X"-65.Media Captioning Services  X#-66.Metropolitan Washington Ear, Inc. (Comments and Additional Comments)  Xh$-67.Sandra Miller  XQ%-68.Motion Picture Association of America, Inc.  X:&-69.JoAnn M. Myers  X#'-70.Narrative Television Network"#'<e,-(-(ZZ%"Ԍ X-71.National Association of Broadcasters  X-72.National Association of the Deaf  X-73.National Broadcasting Company, Inc.  X-74.National Cable Television Association, Inc.  X-75.National Captioning Institute  X-76.National Congress of Jewish Deaf/Jewish Deaf Congress, Inc.  Xv-77.National Federation of the Blind of Idaho  X_-78.Lucille E. Nestler  XH-79.Lee Nettles  X1-80.Frank L. Neuhauser  X -81.North Carolina Association of the Deaf, Inc.  X -82.North Carolina Department of Human Resources, Division of Vocational Rehabilitation XX` ` Services(#`  X -83.Northern Virginia Resource Center for Deaf and Hard of Hearing Persons  X -84.Ohio Educational Telecommunications  X -85.Pennsylvania Society for the Advancement of the Deaf, Inc.  X-86.Richard Pokrass  Xy-87.Public Broadcasting Service  Xb-88.Barbara H. Putney  XK-89.Recording Industry Association of America  X4-90.Regional Audio Information Services Ent.  X-91.Rochester Recreation Club for the Deaf, Inc.  X-92.Satellite Broadcasting and Communications Association  X-93.XSchwartz, Woods & Miller on behalf of Ball State University, Connecticut Public(#  X- XX` ` Broadcasters, Inc., Detroit Educational Television Foundation, Educational Television Association of Metropolitan Cleveland, Fifteen Telecommunications, Inc., Long Island Educational Television Council, Inc., Louisiana Educational Authority, Maryland Public Broadcasting Commission, Metropolitan Board of Public Education, Mississippi Authority for Educational Television, New Jersey Public Broadcasting Authority, Oregon Public Broadcasting, University of New Hampshire, Window to the World Communications, Inc., University of North Carolina Center for Public Television, WJCT, Inc.(#`  X -94.Self Help for Hard of Hearing People, Inc.  X -95.Celia Conlon Shepard  X-96.D.A. She  X-97.Louis M. Smith  X -98.South Carolina Association of the Deaf  X!-99.Bernard J. Sussman  X"-100.Telecommunications for the Deaf, Incorporated  X#-101.U S West, Inc.  Xh$-102.VITAC  XQ%-103.Washington County Chapter, Pennsylvania Council of the Blind  X:&-104.Weather Channel  X#'-105.Charles C. Webster"#'=e,-(-(ZZ%"Ԍ X-106.WGBH Educational Foundation  X-107.Wireless Cable Association International  X-Reply Comments  Xv-1.A&E Television Networks  X_-2.American Council for the Blind  XH-3.American Foundation for the Blind  X1-4.Association of Local Television Stations, Inc.  X -5.Dick Burkhalter  X -6.Caption Colorado, Inc.  X -7.Division of Services for the Deaf and Hard of Hearing  X -8.Encore Media Corporation  X -9.Home Box Office  X -10.Independent Cable & Telecommunications Association  X-11.International Cable Channel Partnership, Ltd.  Xy-12.Liberty Sports, Inc.  Xb-13.Maryland Association of the Deaf  XK-14.Metropolitan Washington Ear, Inc.  X4-15.MidHudson Valley Civic Association of the Deaf  X-16.Motion Picture Association of America, Inc.  X-17.National Association of the Deaf  X-18.National Black Deaf Advocates  X-19.National Cable Television Association, Inc.  X-20.OpTel, Inc.  X-21.Herbert L. Pickell, Jr.  X-22.Rhode Island Association of the Deaf, Inc.  X|-23.Sonny Access Consulting  Xe-24.Sunbelt South TeleCommunications, Ltd.  XN-25.Gary Tomlinson  X7-26.Virginia Association of the Deaf, Inc.  X -27.VITAC  X -28.Washington State Association of the Deaf  X-29.Delbert A. Wheeler  X-30.Wilson Association of the Deaf  X -31.Wireless Cable Association International, Inc.  X!-32.Wisconsin Association of the Deaf