Digitizing "Must-Carry" under Turner Broadcasting v. FCC (1997)

Abstract

On March 31, 1997, the U. S. Supreme Court issued its second and final verdict in Turner Broadcasting v. FCC. By a 5-4 vote, the case decided the constitutionality of rules mandating that cable television operators give carriage to all local TV broadcast stations. The Court, deferring to Congress to determine substantial government interests, held that the regulations were content neutral and deserved only intermediate scrutiny under the First Amendment. A simple economic model shows, however, that must-carry rules impact only marginal TV stations and cable networks. The government interests identified as substantial, on the other hand, rely on broadcasting's general contribution to public affairs and local news. These outputs are not provided by marginal TV stations aided by must-carry, but are often supplied by cable networks removed from systems to make room for must-carry obligations. Stock market reactions support this analysis, suggesting that the 1997 Turner decision did not benefit...