NEWSReport No. DC 96-57        ACTION IN DOCKET CASE          June 24, 1996

         FCC APPROVES DIGITAL DATA TRANSMISSION BY BROADCASTERS;
         Methods Approved for Inserting Ancillary Digital Data 
                 Into the Video Portion of the TV Signal
                          (MM Docket No. 95-42)

       The FCC has amended its rules to allow broadcast television licensees to transmit
ancillary digital data within the video portion of the standard NTSC television signal. Through
the transmission of digital data, broadcasters may provide a wide variety of services including
digital newspapers and magazines, low-speed computer data functions, the signalling of
"interactive" toys that are responsive to the television signal, and the capability to download
computer software and financial data.

       The Commission has approved four such transmission methods, stating that they can
be used by all broadcast licensees, including low power television licensees, without prior
Commission authorization, and without compromising the essential integrity of the delivered
NTSC television picture or causing any other harmful effects on the television viewing public.
Licensees will remain responsible for the proper technical operation of their facilities and for
curing problems that might arise in using these systems. The Commission stated that the
amended rules will allow licensees to provide a wide variety of ancillary communications
services useful and valuable to the public and to industry, while helping licensees to raise
revenue.

       The Commission approved  use of the "overscan" methods of ancillary data
transmission proposed by Yes! Entertainment Corp. and A.C. Nielsen Co. and the "sub-video"
methods proposed by Digideck, Inc. and WavePhore, Inc. Systems using the overscan method
function by replacing the transmitted video signal with digitally encoded information in the
margins of the picture not normally seen by viewers; sub-video systems distribute the
ancillary signals throughout the visible picture in a way that is imperceptible to the viewer.
The Commission declined to approve a third, "signal substitution" method proposed in
comments by En Technology Corp. ("En"), stating that En would need to provide more
information or request an experimental authorization in order for the FCC to consider its
system.

       The Commission said the authorization of these systems is not inconsistent with others'
ongoing efforts to develop a national standard recommendation for certain data services, nor
may it negatively impact the introduction of digital TV technology. Indeed, the Commission
stated that the use of these systems will help broadcasters' transition to digital TV by
providing them with experience in digital data transmission and a means of earning station
revenue that could be used to develop and implement digital TV facilities. The Commission
also stressed that its approval of these systems is based on broadcasters' responsibility to
protect the integrity of closed captioning signals.

       The Commission stated that the use of these ancillary signals will be considered an
elective service, and thus, these services will not be considered broadcasting for the purposes
of FCC rules. Ancillary services that are common carrier in nature will be subject to common
carrier regulation.

       Action by the Commission June 20, 1996, by Report and Order (FCC 96-274).
Chairman Hundt, Commissioners Quello, Ness, and Chong.

   - FCC -

       Mass Media Bureau contacts: Paul Gordon and Gordon Godfrey at (202) 418-2120.