Underwriting spot
Encyclopedia
An underwriting spot is an announcement made on public broadcasting
outlets, especially in the United States, in exchange for funding. These spots usually mention the name of the sponsor, and can resemble traditional television advertisement
s in commercial broadcasting
. However, there are legal restrictions, such as a prohibition of making product claims, announcing prices, or providing an incentive to buy a product or service. In the U.S., these restrictions apply to all non-commercial educational
(NCE) stations, and even for non-sponsoring companies and products.
Donors who contribute funding can include corporation
s, small business
es, philanthropic organizations
, charitable trust
s, and individuals.
Criticism has emerged that these underwriting spots are a corrupting influence on the operations of public broadcasting, and introduce the same biases into non-commercial radio and television that allegedly exist on for-profit outlets. These include inhibiting influences on public affairs programs
(even self-censorship) where investigative journalism
is featured and tendencies toward the use of non-artistic criteria in determining the selection of programs, such as symphony
broadcasts on radio and theatrical productions on television.
(PBS) defines its "Program Underwriting Policy" in its PBS Redbook. its provisions include the following:
Sponsorship underwriting and advertising are essentially the same thing when linked by the exchange of something of value such as cash, goods or services. The underwriter receives a number of informational messages about their business which are broadcast in exchange for a dollar amount. Individuals, Foundations, and non-profit donors may underwrite programming without the need for an underwriting informational advertising contract. PBS and CPB rules permit underwriting commercial use for broadcast stations with certain speech limits that are only available to broadcast stations because of the nature of the non-profit license. Cable television
does not mention or permit this underwriting use as there are no speech restrictions permitted by cable law. Title 47. U.S.C.. Cable television is a pay for play subscription business model
purchased by the cable subscriber. Underwriting is found on cable "must-carry
" PBS stations. Only Public, educational, and government access
(PEG) cable channels have commercial use restrictions and are created to be free from all underwriting informational messages permitted for PBS channels. Commercial underwriting considerations have limited First Amendment protections as the paid underwriting message is necessarily biased in nature.
Public broadcasting
Public broadcasting includes radio, television and other electronic media outlets whose primary mission is public service. Public broadcasters receive funding from diverse sources including license fees, individual contributions, public financing and commercial financing.Public broadcasting may be...
outlets, especially in the United States, in exchange for funding. These spots usually mention the name of the sponsor, and can resemble traditional television advertisement
Television advertisement
A television advertisement or television commercial, often just commercial, advert, ad, or ad-film – is a span of television programming produced and paid for by an organization that conveys a message, typically one intended to market a product...
s in commercial broadcasting
Commercial broadcasting
Commercial broadcasting is the broadcasting of television programs and radio programming by privately owned corporate media, as opposed to state sponsorship...
. However, there are legal restrictions, such as a prohibition of making product claims, announcing prices, or providing an incentive to buy a product or service. In the U.S., these restrictions apply to all non-commercial educational
Non-commercial educational
The term non-commercial educational applies to a radio station or TV station that does not accept on air advertisements , as defined in the United States by the Federal Communications Commission . NCE stations do not pay broadcast license fees for their non-profit uses of the radio spectrum...
(NCE) stations, and even for non-sponsoring companies and products.
Donors who contribute funding can include corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s, small business
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
es, philanthropic organizations
Philanthropy
Philanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
, charitable trust
Charitable trust
A charitable trust is an irrevocable trust established for charitable purposes, and is a more specific term than "charitable organization".-United States:...
s, and individuals.
Criticism has emerged that these underwriting spots are a corrupting influence on the operations of public broadcasting, and introduce the same biases into non-commercial radio and television that allegedly exist on for-profit outlets. These include inhibiting influences on public affairs programs
Public affairs (broadcasting)
Public affairs, a broadcasting industry term, refers to television programs which focuses on matters of politics and public policy. Among commercial broadcasters, such programs are often only to satisfy Federal Communications Commission regulatory expectations and are not scheduled in prime time...
(even self-censorship) where investigative journalism
Investigative journalism
Investigative journalism is a form of journalism in which reporters deeply investigate a single topic of interest, often involving crime, political corruption, or corporate wrongdoing. An investigative journalist may spend months or years researching and preparing a report. Investigative journalism...
is featured and tendencies toward the use of non-artistic criteria in determining the selection of programs, such as symphony
Symphony
A symphony is an extended musical composition in Western classical music, scored almost always for orchestra. A symphony usually contains at least one movement or episode composed according to the sonata principle...
broadcasts on radio and theatrical productions on television.
PBS policy
The Public Broadcasting ServicePublic Broadcasting Service
The Public Broadcasting Service is an American non-profit public broadcasting television network with 354 member TV stations in the United States which hold collective ownership. Its headquarters is in Arlington, Virginia....
(PBS) defines its "Program Underwriting Policy" in its PBS Redbook. its provisions include the following:
- UnderwritersUnderwritingUnderwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products . The name derives from the Lloyd's of London insurance market...
are defined as third parties that voluntarily contribute cash to partially or fully finance the production or acquisition of a program by a PBS station. Underwriters do not include investment or licensing partners or distribution entities providing cash for other purposes. - The block of time containing underwriter credits is called the "underwriting credit pod"; it can be no longer than 60 seconds, with no more than 15 seconds allocated per underwriter. If any underwriter is mentioned, then all must be acknowledged.
- Underwriting credit pods must "mirror the production values of the program and flow smoothly with program content and other packaging elements."
- Underwriting credit pods must appear at the end of the program and may appear at the beginning. In news and public affairs programs, underwriting credits must be included in both places. The end underwriting pod can be either before or after the program's production credits; if an underwriting pod is including in the beginning, it must start within the program's first three minutes and should be placed after the program's opening or tease (in order to separate national underwriting from local underwriting).
- When PBS partially funds the production, the underwriting credit pod must end with "...from Viewers Like You. Thank you"; when funding is received from the Corporation for Public BroadcastingCorporation for Public BroadcastingThe Corporation for Public Broadcasting is a non-profit corporation created by an act of the United States Congress, funded by the United States’ federal government to promote public broadcasting...
(CPB), they are credited with a voiceoverVoiceOverVoiceOver is a screen reader built into Apple Inc.'s Mac OS X, iOS and iPod operating systems. By using VoiceOver, the user can access their Macintosh or iOS device based on spoken descriptions and, in the case of the Mac, the keyboard. The feature is designed to increase accessibility for blind...
("This program was made possible by the Corporation for Public Broadcasting") and a "visual treatment" consisting of the CPB logo, the tag line "a private corporation funded by the American people" and the CPB's website ("cpb.org").
Sponsorship underwriting and advertising are essentially the same thing when linked by the exchange of something of value such as cash, goods or services. The underwriter receives a number of informational messages about their business which are broadcast in exchange for a dollar amount. Individuals, Foundations, and non-profit donors may underwrite programming without the need for an underwriting informational advertising contract. PBS and CPB rules permit underwriting commercial use for broadcast stations with certain speech limits that are only available to broadcast stations because of the nature of the non-profit license. Cable television
Cable television
Cable television is a system of providing television programs to consumers via radio frequency signals transmitted to televisions through coaxial cables or digital light pulses through fixed optical fibers located on the subscriber's property, much like the over-the-air method used in traditional...
does not mention or permit this underwriting use as there are no speech restrictions permitted by cable law. Title 47. U.S.C.. Cable television is a pay for play subscription business model
Subscription business model
The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The model was pioneered by magazines and newspapers, but is now used by many businesses and websites....
purchased by the cable subscriber. Underwriting is found on cable "must-carry
Must-carry
In cable television, governments apply a must-carry regulation stating that locally-licensed television stations must be carried on a cable provider's system.- Canada :...
" PBS stations. Only Public, educational, and government access
Public, educational, and government access
Public, educational, and government access television, refers to three different cable television specialty channels...
(PEG) cable channels have commercial use restrictions and are created to be free from all underwriting informational messages permitted for PBS channels. Commercial underwriting considerations have limited First Amendment protections as the paid underwriting message is necessarily biased in nature.