Bill Overview
Title: CALM Modernization Act of 2022
Description: This bill applies certain requirements concerning the volume of commercials to video streaming services that are supported by advertisements (e.g., Hulu). It also modifies enforcement related to those requirements. Current law requires commercials transmitted via broadcast, cable, and satellite television to have the same average volume as the underlying programming. Under this bill, the Federal Communications Commission must apply through rulemaking similar requirements to ad-supported video streaming services. The bill also modifies enforcement of requirements for moderating the volume of commercials. The commission currently uses a complaint-driven enforcement process. Under this bill, the commission must treat violations of the requirements as violations of the Communications Act of 1934. Additionally, the bill makes rebuttable a presumption that deems a broadcast television station, cable operator, or other multichannel video programming distributor in compliance with the requirements if it appropriately installs and uses certain equipment and software to moderate the volume of commercials. The Government Accountability Office must report on the effectiveness of the requirements, and the commission's enforcement of them, in moderating the volume of commercials.
Sponsors: Sen. Whitehouse, Sheldon [D-RI]
Target Audience
Population: People who watch ad-supported video streaming services
Estimated Size: 70000000
- The bill applies to video streaming services that are supported by advertisements.
- This includes popular services such as Hulu, Pluto TV, and other similar platforms.
- Global internet users with access to these platforms will be affected, especially those who watch ad-supported content.
- The regulation already exists for broadcast, cable, and satellite viewers, so the primary new population are those using streaming services.
- Approximately 850 million to 1 billion people stream ad-supported content globally, given the market penetration of these platforms.
Reasoning
- The policy primarily affects those who consume ad-supported streaming content, a demographic largely consisting of younger people, budget-conscious users, and those who prefer not to pay for ad-free experiences.
- With a budget of $164.5 million over 10 years, the enforcement and oversight budget per individual affected is limited, considering the vast number of users.
- There are already existing regulations for similar services on broadcast, cable, and satellite, which may mean some consumers won't notice a drastic change unless they are sensitive to abrupt changes in volume.
- Since enforcement is enhanced, some streaming platforms might quickly adjust technologies to comply, but the true effect on the user's experience depends on how disruptive they find the existing issue.
- Given the focus is on user experience during streaming, improvements might increase satisfaction slightly, especially among users who find sudden volume increases disruptive.
- The policy specifically targets volume issues, without addressing other aspects of user experience, so its overall impact might be limited primarily to those most irritated by volume changes.
Simulated Interviews
Graphic Designer (Austin, TX)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I hate when the commercials suddenly get louder.
- It's especially annoying when I'm working and have something on in the background.
- If this makes things quieter, it's a great move.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
IT Manager (Los Angeles, CA)
Age: 42 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I think it's minor but can be disruptive.
- I've learned to expect this from ad-supported services.
- If it's solved, it would be a neat improvement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Teacher (Buffalo, NY)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- I didn't realize this was a problem people had.
- I suppose it might help some people, but I've just gotten used to it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired (Boca Raton, FL)
Age: 67 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 7/20
Statement of Opinion:
- Loud ads are really annoying and can be startling.
- It's good that they're trying to fix this so I can enjoy shows without the volume spikes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
College Student (Boston, MA)
Age: 19 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- The ad volume is a nuisance, especially on headphones.
- I hope they fix this to make it more consistent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Accountant (Chicago, IL)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 13/20
Statement of Opinion:
- I'm used to adjusting the volume, so it doesn't really bother me.
- It's nice they want to address it, but it's not a huge deal for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Freelance Writer (Seattle, WA)
Age: 34 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- It's an industry problem but not very significant to me.
- I see how it could be annoying, though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Stay-at-home Parent (Denver, CO)
Age: 39 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- I find it annoying, and my kids sometimes get startled by loud ads.
- It would be beneficial if volumes were balanced.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Bartender (Las Vegas, NV)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- Frequent adjustments can be a bit distracting during games.
- It would be nice to have less interruption from ads.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Software Engineer (San Francisco, CA)
Age: 31 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- It's a minor annoyance, but nothing major.
- Glad to see efforts to improve user experience.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $15000000 (Low: $12000000, High: $18000000)
Year 3: $15000000 (Low: $12000000, High: $18000000)
Year 5: $16000000 (Low: $13000000, High: $19000000)
Year 10: $17000000 (Low: $14000000, High: $20000000)
Year 100: $25000000 (Low: $20000000, High: $30000000)
Key Considerations
- The FCC will need to update existing protocols and possibly increase staff to enforce new rules effectively.
- Costs could reduce over time as procedures become more streamlined and initial implementation investments are recouped.
- Consumer satisfaction with ad-supported services might increase, potentially increasing their use and associated economic activities.
- There might be pushback from streaming services due to increased compliance costs.