ExecutiveWing STRONG SIGNAL AT KOCE Public television is alive and well in Orange County. Reports of KOCE’s demise have been greatly exaggerated. Despite losing a round in court to DayStar, the Texas televangelism behemoth trying to gain control of Orange County’s Emmy Award-winning public television station, KOCE finished the fiscal year in a strong financial position and plans to launch a 24-hour digital news channel that will double the station’s size. “ We have tripled our number of viewers in the past five years,” says Mel Rogers, KOCE’s president and general manager. “Our pledge drives are off the charts. We just bought our first satellite truck so that we can do live feeds on our nightly Orange County news show ‘Real Orange,’ and I have been meeting with investors who are interested in backing our cable news channel. I’m completely confident that we will be on the air for years to come.”

The dispute with Daystar dates from last year when the KOCE Foundation bought the broadcast facility at Golden West College from Coast Community College District. The foundation bid $32 million; $8 million in cash with the rest to be paid in installments - while Daystar bid $25.1 million in cash. Daystar sued to overturn the sale, citing a regulation that requires school districts to sell surplus goods such as vehicles or furniture to the highest cash bidder. A lower court judge and the FCC agreed with district trustees that the station was exempt from that rule, being a distinctly different type of entity than a used pickup truck. The FCC awarded the station’s valuable broadcast license to the KOCE Foundation in October 2004 and the sale was finalized in November 2004. The setback came on June 23 when the 4th District Court of Appeals in Santa Ana overturned the lower court and said the sale violated DayStar’s rights. “ The ruling was a surprise,” says Rogers. “We had won twice and the lawyers assured us we would win again, that it was just a nuisance suit.” The appellate court seems to have developed doubts about the ruling, too. On July 25, it announced that it will revisit the decision. “The fact that they are reconsidering the decision seems like a good sign to us,” Rogers says. A new hearing on the matter is scheduled for November. Daystar, the second-largest religious broadcaster in the U.S., has also filed lawsuits in federal court against the community college district and individual trustees, alleging religious discrimination. “ To us, it has never been about religion,” says Rogers. “It is about local vs. non-local °© does Orange County with more than 3 million people have the right to its own electronic media? If Daystar were to prevail, they would simply put a satellite dish next to the transmitter and pipe in content from Texas. “ One reason there is a lack of a sense of community in Orange County is that we don’t see our issues and events and leaders on our TVs in our family rooms every night. We see Los Angeles’ mayor and United Way event and symphony, but we don’t see ourselves. We want to build the OC brand and help create a greater sense of connection and community by covering our own events and people.” Additionally, Coast Community College District officials cite the need for educational television as part of their reason for selling the station to the KOCE Foundation. KOCE streams targeted educational content to Orange County schools for a modest fee. The programming is organized by grade level and coordinated with state educational requirements. Teachers can log in and choose from a wide selection of short and long videos covering everything from current events to science to history. This educational resource would be lost under Daystar. Rogers says that even if Daystar wins in court in November, KOCE should be able to continue operating under a local market agreement wherein the community college district would retain ownership while the KOCE Foundation ran the station. OCM — By Steve Thomas Viewers: One million households tune in each week Growth: Audience size tripled in the past five years Employees: 35 Annual budget: Approximately $9 million in the current fiscal year Revenue sources: Viewers (60-70%), PBS (15-20%), corporate sponsors, studio rentals, major donors, public schools fees