ABSTRACT
Consumer welfare has been a central theme in the public interest regulation of broadcasters. The Federal Communications Commission (FCC) has exercised its public interest authority to ensure that licensees heed audience demands and offer viewers a broad range of programming. The debate surrounding broadcast regulation has thus consistently focused on economic questions: Do failures in the video market warrant remedial programming guidelines? Does license scarcity justify regulatory demands in return for licensees' valuable spectrum rights? New rules have been justified on the ground that market failures persist. Regulation has been repealed when the market is perceived to serve consumers well. Program diversity has been a crucial measure in the FCC's assessment of video market performance.
