Statistical Modeling of the Public Broadcasting Corporation’s share of TV Royalties

Problem

By law, royalties from the re-transmission of distant television signals are regulated by a panel of arbitrators at the Library of Congress called the Cable Royalty Tribunal. These royalties are drawn from a pool of funds contributed by local television stations who receive distant signals. When the owners of the major categories of retransmitted programming are unable to agree on how the royalties are shared, they submit their claims before the arbitrators.

Procedure

On behalf of one owner, the Public Broadcasting Corporation, Analysis & Inference critiqued surveys intended to establish each party’s share. A+I also specified statistical models that determined shares more objectively than the expert testimony of economists and survey professionals.

In one hearing, the analysis substantially revised upward our client’s share. The panel agreed. A second time was believed to be convincing in maintaining their prior level.