Smithsonian Hands Over TV Contract

The objections were loud and were repeated yesterday at the hearing.

"What we do know is that the resources of the Smithsonian should not be made exclusive to anyone," said Margaret Drain, vice president for national programming at Boston station WGBH, one of public television's leading producers.

Several committee members said they were deeply troubled over the length of the contract, especially if access continues to be an issue. "I'm worried about stifling people for 30 years, and Showtime doesn't want the competition," said Rep. Robert A. Brady (D-Pa.). Small said it took time to build a cable company, and establish a brand.

Small explained that the Showtime project was one way that Smithsonian was trying to bring in extra revenue. It receives 75 percent of its money from Congress. Its other funds come from a private account that includes an $800 million endowment. Small said yesterday the Smithsonian had raised $1 billion from private sources since 2000. But he also reminded the panel that the Smithsonian has a backlog of repairs that would cost billions of dollars.

The contract also gives the Smithsonian a 10 percent ownership in the Smithsonian on Demand venture. "Since the Smithsonian is not investing any money, the percentage is unusually good," Small said.

The Showtime agreement, Beer said, was reached after discussions with 10 other media companies. The conversations with Showtime started in March 2005 and were announced a year later.

Besides Drain, the committee heard from two other critics of the deal. Emily Sheketoff, executive director of the American Library Association's Washington office, suggested that the Showtime contract be annulled and that the terms of another deal with HarperCollins Publishers be disclosed. Carl Malamud, a senior fellow at the Center for American Progress, a Washington think tank, said in a rapidly changing media age, a 30-year contract was impractical. "In this Internet era, even three-year distribution contracts can be considered long," Malamud said.

Whatever the future of Smithsonian businesses, the panel emphasized that Congress needs to be keep informed.

"If we have even an idea we will come to you," Beer said.