Media Diversity, Data, and Decisionmaking

Media Diversity, Data, and Decisionmaking

October 18, 2017
Media Diversity, Data, and Decisionmaking
Government Interest in Media Diversity
Over the last five years, however, subscription online video
The representation of diverse points of view and diverse
distributors (OVDs), such as Netflix, Amazon Prime Video,
ownership of businesses within the television industry has
and Hulu, have attracted an increasing number of
long been of interest to Congress. Section 257 of the
subscribers while subscriptions to cable and satellite
Telecommunications Act of 1996 directs the Federal
services have declined. Combined, broadcast networks,
Communications Commission (FCC) to promote policies
cable networks, and OVDs generate about $100 billion in
that promote diverse viewpoints in the media, economic
annual revenues. The OVDs have provided new
competition, and technological advancement. In addition,
opportunities for program creators by competing with
Section 308(j)(3)(B) of the Communications Act of 1934
networks to commission new programs.
specifies that when the FCC is awarding new licenses
(including broadcast licenses) by competitive bidding, the
Traditional television networks have responded to this
agency must promote opportunities for “businesses owned
competition by launching their own OVDs with exclusive
by members of minority groups and women.”
programs. This may create new opportunities for production
companies, including those owned by minorities and
Given this statutory direction, the FCC has sought to
women.
encourage diversity of viewpoints, as reflected in the
availability of media content offering a variety of
In addition to increasing competition in the commissioning
perspectives, and diversity of programming, as indicated by
of original television programs, OVDs are changing the
a variety of formats and content. To accomplish this, the
way the success of television shows is measured, which in
FCC has relied on its authority over broadcasters, as well as
turn affects whether television networks and other
and cable and satellite services that distribute television
aggregators are willing to renew them.
programming to consumers. For example, the FCC’s Equal
Employment Opportunity (EEO) rules and policies govern
Role of Showrunners in TV Production
the job recruitment by broadcast stations, as well as cable
The emergence of OVDs offers both opportunities and
and satellite video programming distributors.
challenges for diversity in employment and the creation of
programs that reflect the experiences of a variety of
On April 24, 2017, FCC Chairman Ajit Pai announced the
demographic groups. Showrunners are central to the
formation of the FCC’s Advisory Committee on Diversity
changes that are possible.
and Digital Empowerment (ACDDE). The ACDDE’s
purpose is to issue recommendations to the FCC on “how to
Showrunners, the people who head production companies,
empower disadvantaged communities and accelerate the
are a creative force behind television programs. In addition
entry of small businesses, including those owned by women
to having creative authority, they have overall managerial
and minorities, into the media, digital news and
responsibility, hiring and overseeing the cast, producers,
information, and audio and video programming industries,
directors, and crew. In addition, showrunners must ensure
including as owners, suppliers, and employees.” However,
that the team they oversee meets the expectations of the
structural and technological changes in the television
television studios that finance programs’ production and
industry, including the growing importance of entities not
then license the programming to television networks and
subject to FCC regulation, are complicating its efforts to
OVDs.
achieve these policy goals.
Choosing Programs and Showrunners
Recent Developments
Because television programs are creative products, their
For the last 60 years, broadcast networks, and then cable
financial success is unpredictable. When pitching new
networks, were the gatekeepers of television programs.
programs to television networks, production companies
While FCC has never had direct authority over television
create a sample filmed episode, called a “pilot.” Of all
programming, it has been able to use its oversight of
pilots, networks order only a small fraction, and fewer than
broadcasting and satellite and cable distribution to
half of those are renewed for a second season. For studios,
encourage diversity in programming. For example, when
which typically provide financing to production companies
the FCC approved Comcast Corporation’s purchase of NBC
and license their products to networks and OVDs, financing
Universal’s broadcast television stations, networks, and
such a large number of unsuccessful pilots is risky.
studios in 2011, the agency required Comcast to distribute
10 new independently owned and operated cable networks.
In the past, in an effort to alleviate financial risks, studios
Furthermore, the FCC cited Comcast’s commitment to
generally would hire people they knew, who may have
expand its offering of programming targeting racial and
shared similar demographic characteristics. According to a
ethnic minority audiences as evidence of Comcast’s
2007 report published by the Writers Guild of America,
commitment to diversity.
West (WGA), in 1999, 7% of television writers were
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link to page 2 Media Diversity, Data, and Decisionmaking
minority and 18% were women. Comparable statistics for
AT&T to incorporate their set-top box data into its audience
showrunners and directors from this period are not readily
measurements. In October 2017, Nielsen announced that it
available. However, many showrunners begin their
would begin to measure the viewing of programs by OVDs,
television careers as writers, and the WGA data imply that
beginning with Netflix.
comparatively few minority and female writers may have
had the opportunity to become showrunners.
Diversity Statistics
Research indicates that the proportion of female or minority
Traditionally, television networks have relied on the
showrunners remains relatively low. In a study of television
research firm The Nielsen Company to measure viewership
programs that originally aired during the 2014-2015
of particular shows, and have used this information to guide
television season (September 1, 2014, through August 31,
decisions about commissioning of new programs. These
2015), the 2017 Hollywood Diversity Report documented
data, which also determine the prices networks charge for
the extent to which minorities and women are present in
television advertising, are widely available within the
front of and behind the television camera, including
industry. Nielsen’s measurement services are accredited by
showrunners. The report did not define how minorities were
the Media Ratings Council, an organization composed of
categorized (i.e., ethnic, racial, or both). As Table 1
representatives of television and advertising member
illustrates, the report found the proportion of programs
companies, among others.
created by showrunners who were minorities or women to
be much lower than the share of these groups in the general
Rise of Analytics and Consumer Data
population.
OVDs are changing the paradigm of choosing programs,
and subsequently the hiring of showrunners. Today, these
Table 1. Programs Created by Minority and
decisions are more likely to be based on data they collect
Female Showrunners by Type of Television
internally. Netflix, for example, analyzes viewing data from
Programming Packager
its subscribers to determine which shows to commission.
2014-2015 Television Season
Since 2013, Amazon has relied on subscriber votes to
determine which of a sample of pilots to order for a full

Minority
Female
season, but sometimes bypasses pilots and orders full
Broadcast
8.0%
22.4%
seasons of programs.
Network Programs
Neither Netflix nor Amazon releases internal data to the
Cable Network
7.5%
20.9%
public or to program suppliers. Some showrunners claim
Programs
that the lack of publicly available audience data provides
Online
5.6%
20.4%
them with creative freedom in developing their programs.
In a 2015 “Ask Me Anything” interview sponsored by the
Subscription Video
Service Programs
online discussion website Reddit, first-time showrunners
Aziz Ansari and Alan Yang, who created Master of None,
Total U.S.
38.4%
50.8%
about an Indian American actor’s romantic, professional,
Population
and cultural experiences, cited this as a reason their
Sources: Ralph J. Bunche Center for African American Studies at
production companies (Oh Brudder Productions and Alan
UCLA, 2017 Hollywood Diversity Report, p. 28; CRS analysis of data
Yang Pictures, respectively), in conjunction with the
from the U.S. Census Bureau.
Universal Television studio, chose to contract with Netflix
rather than cable networks.
Notes: Total programs sampled for programs created by race and
gender: broadcast = 125; online = 54. For cable networks, the total
Others, however, complain about the lack of transparency.
number of programs sampled was 200 for shows created by race, and
In October 2016, within five weeks of the program’s debut,
201 for programs created by gender. Individual showrunners may
Amazon canceled Good Girls Revolt, about women fighting
create multiple programs.
sex discrimination in 1969. In an interview with the
Philadelphia Inquirer, the show’s creator, Dana Calvo,
Issues for Consideration
contended that the canceled show was popular with
The analysis of internal audience data may make networks
viewers, based on non-Amazon data. In addition, according
and OVDs more open to commissioning programs from
to the publication Deadline Hollywood, Amazon has
showrunners with diverse backgrounds, when the data
reportedly shifted its programming strategy to focus on
indicate that their programs have won significant numbers
attracting wide audiences.
of viewers. Former Equal Employment Opportunity
Commission Chair Jenny R. Yang noted at an October 2016
Today, networks are supplementing Nielsen’s
public meeting that newly available analytical tools have
measurements with data collected by cable and satellite
the potential to both reduce hiring bias and create barriers to
video programming distributors via set-top boxes and other
opportunity, depending on their design. The effect of these
viewing devices. In an October 2016 conference call about
new analytical tools on media diversity may be an issue of
AT&T’s proposed acquisition of Time Warner Inc., AT&T
interest to Congress.
Chairman and CEO Randall Stephenson stated that the
combined company’s data would enable Time Warner to
Dana A. Scherer, Specialist in Telecommunications Policy
develop content more efficiently. Nielsen itself has reached
agreements with satellite television distributors DISH and
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Media Diversity, Data, and Decisionmaking

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