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Top Court’s Ruling Reinstates Media Ownership Changes
A unanimous decision by the U. S. Supreme Court justices on Thursday allows the FCC to ease limits on the ownership of local radio and television. Legal observers believe the court’s decision in essence reinstates the FCC’s 2017 media ownership rules.
The FCC adopted rules to abolish the ban on newspaper/broadcast and radio/TV cross ownership, and relax several local TV ownership regulations in 2017. Those new rules were held up from taking effect for years due to court challenges that have now been exhausted, experts say.
Legal experts believe the “practical result” of the high court’s decision is that the FCC’s media ownership rules adopted in 2017 will simply go into effect now, said Matt McCormick, co-managing member at Fletcher, Heald & Hildreth.
[Read: Supreme Court Rules on Media Ownership Question]
“The Supreme Court’s ruling supports the authority of the FCC and other administrative agencies to make reasonable predictive judgments, even on sparse record evidence,” McCormick says.
The FCC is currently split 2–2 along party lines and is under new leadership of acting chair Democrat Jessica Rosenworcel. It’s not clear if commissioners will discuss the top court’s decision at its April open meeting. A tentative agenda for the meeting on April 22 does not mention it. The meeting agenda could obviously be updated going forward, legal observers say.
Rosenworcel voted against the ownership rule changes in 2017 and again made her feelings known with a released statement following the SCOTUS announcement: “While I am disappointed by the court’s decision, the values that have long upheld our media policies — competition, localism, and diversity — remain strong. I am committed to ensuring that these principles guide this agency as we move forward.”
Meanwhile, Republican FCC commissioner Brendan Carr yesterday reinforced his belief that the 2017 rule changes made were common sense. “(Thursday’s) unanimous opinion from the U.S. Supreme Court leaves no doubt that the FCC’s modern approach to media regulation that we adopted in 2017 was the right decision.”
Scott Flick, a communications attorney at Pillsbury, wrote on social media that he believes Thursday’s SCOTUS ruling could mean even bigger changes to media ownership in this country. He published his thoughts on the CommLawCenter blog: “It will not end the debate over the FCC’s various broadcast ownership rules, but will certainly change the nature of that debate, and open the door to a different debate — whether broadcast ownership rules are needed at all.”
The commission also could now consider changes to local radio ownership rules. The FCC had paused discussion of changes to the radio ownership rules in 2018 at the start of a new ownership review period. NAB at the time suggested significant changes to the FCC rules limiting the number of terrestrial radio stations that one company can own in a radio market.
Current radio market caps were set in 1996 as part of that year’s Telecommunications Act. It placed limits on a sliding scale. In the largest of radio markets an entity can own up to eight radio stations (only five of which can be of the same service), and in the smallest markets, only two stations (one AM and one FM).
Radio World has reported NAB pushed for changes to market subcaps to allow a company to own up to eight FMs in the top 75 markets while also permitting the operator to own or control a limitless number of AM stations among other changes. Ownership caps are the total number of stations you can own in a market, whereas as a subcap is how many of those stations can be FM or AM.
David Oxenford at Wilkinson Barker Knauer wrote on his Broadcast Law Blog on Thursday: “Now that the Third Circuit’s reasoning has been rejected, that still does not mean that the FCC, particularly a Democrat-controlled FCC, will automatically look to relax the radio rule.
“Instead, we think it likely that the commission will ask for more comments on the issues raised in the 2018 proceeding. This will likely include a request to discuss the impact of the Supreme Court decision on the commission’s evaluation of proposed changes to its rules. It would not be surprising for the FCC to also ask for an update of the comments filed in 2019 to reflect the state of current marketplace. In other words, any change in the radio ownership rules will not come quickly.”
The National Association of Broadcasters, which joined the FCC in fighting the lower court ruling blocking changes to broadcast media ownership regulation, said it remains critical the commission continues to examine its media ownership rules to ensure that America’s broadcasters are able to compete. The group’s President and CEO Gordon Smith issued this statement.
“NAB commends (the) unanimous decision by the Supreme Court that the FCC’s recent and long-overdue modernization of its broadcast ownership regulations was lawful and appropriate. We look forward to working with the commission on this effort given the essential role radio and television broadcasters play for all Americans.”
The post Top Court’s Ruling Reinstates Media Ownership Changes appeared first on Radio World.
FCC Declines to Expand Four-Station AM Auction
The Federal Communications Commission has now published the procedures for Auction 109, which will take place in late July and involve 136 FM and four AM construction permits. At the same time, it declined a suggestion that it expand the auction to include every abandoned and deleted AM station in the nation.
An earlier FM auction was postponed last year due to the pandemic and has been canceled; this auction will include all of the permits that were included in the earlier one plus a handful more. The FM CPs are for vacant allotments reflecting channels added to the Table of Allotments.
[Read: FCC Schedules Auction of 136 FM CPs]
The four AM CPs to be auctioned are for stations in the St. Louis area that had their license renewals dismissed by the commission’s administrative law judge in the Entertainment Media Trust case last year.
To facilitate the auction of these four permits, their facilities will be treated as existing “allotments.” Any winning bidder will be limited in its opportunities to modify those AM permits.
The FCC wants to move quickly on the AMs, given that those CPs represent 13% of the AM stations in a top 25 radio market. “The effect of this removal of a significant portion of AM radio service to a major U.S. market supports our conclusion that the public interest favors replacing this service as soon as practicable,” it wrote.
No expansionThe commission, however, declined to make a dramatic expansion in the number of AM facilities in the auction.
One company wanted it to add nine specific facilities that it says have been “abandoned” and their call signs deleted. WTRW Inc. went on to ask that Auction 109 include all AM stations whose call signs have been deleted as well as abandoned AM expanded band facilities that were approved but never built.
The commission declined both requests. It basically said the four stations in St. Louis are a special case that also involves a protective application freeze.
Separately, Tracy K. Wood asked the FCC to add 14 more FM allotments to the list of CPs to be offered. The commission declined that too, saying most of those are among the most recent to be added to the Table of Allotments, but said it will consider offering them in a future auction.
Bidding is to start on July 27. An online auction tutorial is to be scheduled this month. Details are in the latest public notice. The commission also posted the station list and minimum opening bids.
The post FCC Declines to Expand Four-Station AM Auction appeared first on Radio World.
A HC2 Investor Kicks Itself For Its Gamble
Based in tiny Lynden, Wash., an hour from Vancouver, B.C., Cedar Creek Partners has carved itself a niche in the investment management space under the direction of Managing Member Tim Eriksen of Eriksen Capital Management.
For those who have entrusted their dollars with Cedar Creek, there’s good news — a 13.7% Q4 2020 return was recorded by the fund, outperforming the S&P 500. Among the companies Cedar Creek invested in is HC2 Holdings.
And, Eriksen had something to say about that investment.
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Here Comes Auction 109. What Should Radio Know?
On July 27, the FCC will conduct an auction of AM and FM broadcast construction permits.
What do individuals or groups seeking to participate need to know? Filing requirements, along with minimum opening bids, upfront payment information and other procedures are now known.
Oh, and the auction is comprised of more than 100 new FM CPs, and four AM stations serving the St. Louis market that replace a now-defunct quartet.
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‘Auction 109’ Yields Minor Change Freeze
With the FCC’s announcement that it will conduct an auction of some 136 vacant non-reserved band allotments in the FM broadcast service, the Media Bureau is putting a freeze on FM minor change applications.
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FCC Sets Comment Deadlines in EAS NPRM
The Federal Communications Commission has announced the deadlines for public comment on its proposed changes to the Emergency Alert System and the Wireless Emergency Alerts system.
As we reported earlier, the commission, prompted by Congress, has issued a notice of proposed rulemaking and a related notice of inquiry.
The NPRM’s new rules would ensure that mobile devices cannot opt out of receiving WEA alerts from the Federal Emergency Management Agency; adopt additional requirements for State Emergency Communications Committees and state EAS plans; establish a false alert reporting system for certain government entities; and require the repeating of certain EAS messages.
Comments in PS docket numbers 15-91 and 15-94 are due April 20 and replies are due May 4. They can be filed in the FCC’s online comment system.
The separate notice of inquiry seeks comment on the feasibility of updating EAS to enable or improve alerts through the Internet, including from streaming services. Comments on that are due May 14, and replies are due June 14.
[“FCC Will Explore EAS on the Internet”]
The post FCC Sets Comment Deadlines in EAS NPRM appeared first on Radio World.
iHeart Picks Thomas in Mid-North
iHeartMedia named Charlie Thomas as area president for its Mid-North area, comprising six markets and 29 stations.
“As area president, Thomas will be responsible for overseeing programming, advertising and operations across the Mid-North area, including the Bismarck, Dickinson, Minot, Grand Forks and North Dakota markets, with the addition of the Eau Claire and Rochester markets,” the company stated.
[Read: iHeart Promotes Latham in Florida]
He will report to Shosh Abromovich, division president for iHeartMedia.
Abromovich was quoted in the announcement saying, “His proven leadership helped the North Dakota area be among the top performers throughout the COVID-19 pandemic.”
Thomas has been area president for the company in North Dakota, market president for Bismarck and area president for Grand Folks.
Send your people news to radioworld@futurenet.com.
The post iHeart Picks Thomas in Mid-North appeared first on Radio World.
The FCC’s Line In The Sand On Media Rule Modernization
April 1 began in a rather ordinary way, even as mild April Fools’ pranks were seen at such radio stations as WBEN-FM in Philadelphia, which sped up its music so it could offer the most songs on the radio.
Then, with little warning, the 11am Eastern hour saw the arrival of a 20-page document that was far from a joke: The U.S. Supreme Court unanimously reversed the Third Circuit appeals court’s remand of the FCC’s 2017 cross-ownership rule rewrite.
On Twitter, former FCC Chairman Ajit Pai reacted, after posting a video of birthday boy Jimmy Cliff singing “The Harder They Come.” How prophetic. Weeks after stepping aside with the transition in power at the White House, Pai was victorious.
The acting Chairwoman of the FCC, Jessica Rosenworcel, also had something to say about the Supreme Court ruling. She struck a somber tone, illustrating just how divided the Commission is on media “modernization.”
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Hoosier Group Spun To Hopeful New Owner
The Terre Haute, Ind., market, which largely includes nearby Paris, Ill., is the home of a non-commercial group of religious stations presently operated by Word Power Inc.
On March 16, this group signed off on an agreement that would assign its two AMs, two FMs, two FM translators and one FM translator construction permit to a new licensee.
American Hope Communications is agreeing to acquire the following properties from Word Power Inc.:
- WPFR-FM 93.7 in Clinton, Ind., a Class A
- WPFR-AM 1480 in Terre Haute, a Class B with 5kw daytime from 3 towers and 1kw nighttime from 4 towers
- WKZI-AM 800 in Clinton, Ind., a 250-watt Class B from 1 tower
- WLHW-FM 91.5 in Clinton, Ind., a 6kw Class A
- W234CK at 94.7 MHz in Casey, Ill., W300DD at 107.9 MHz in Greenup, Ill., and CP W292FT in Terre Haute
The deal is valued at $179,000. A $35,800 escrow deposit has been made.
The buyer is led by Richard Wheeler, who is represented by Jeffrey Southmayd of Palm Coast, Fla. He’s the President of Countryside Broadcasting, which owns and operates WJLY-FM 88.3 in Ramsey, Ill. The deal suggests WJLY’s mission of serving South Central Illinois with the word of God could be widening to Terre Haute.
American Hope will assume Word Power’s lease agreement with Paul Ford for real estate used for a radio transmission tower, satellite dish receiver, and “appurtenant equipment.”
Xperi Has Big Ambitions for DTS AutoStage
I have a better understanding of the DTS AutoStage hybrid radio platform after interviewing Joe D’Angelo, Xperi’s senior vice president radio, in a joint webcast about the company’s automotive technology initiatives.
That webcast, “The Future of Radio in the Car,” is available on demand, and I hope you can watch it given the expanded role Xperi hopes to play in how radio is delivered and consumed around the world.
DTS AutoStage, formerly called DTS Connected Radio, is intended to help stations compete in the dashboard with “pure play” services like Spotify and satellite.
“DTS AutoStage is really a global connected car platform that enables broadcast radio to collaborate around delivering services to automakers in a direct response to the challenge posed by Big Tech in the car,” he told me.
“We’ve all seen how Big Tech is coming in, they’re taking over the dashboard, they’re taking over audio services. DTS AutoStage is a global response that puts broadcast radio in control of the platform to design new interactive services, to expand functionality, to engage their customers.”
Further, he said, it is free, requiring no capital investment from broadcasters.
Consumers get enhanced content discovery, with “now playing,” live presets and a live guide, voice interaction and expanded visual imagery. D’Angelo calls it “a whole different user experience for broadcast radio.” The emphasis is on helping consumers discover local broadcasts carried by on-air signals.
Xperi’s recent merger with TiVo accelerated developments; TiVo knows about aggregating content with metadata, so it brought useful resources to a similar task involving music metadata.
The first mass market vehicle launch was in the Mercedes S-Class, a car with no fewer than five screens where occupants can consume radio and radio metadata.
Images at left show how DTS AutoStage and HD Radio display in a Daimler S-Class vehicle.“Daimler was very interested in launching hybrid radio, where you take advantage of broadcast radio content and you enhance it with IP-delivered metadata, you enable interaction with radio stations and in some cases provide high-resolution images,” D’Angelo said.
“But they wanted a service that was available and consistent in all the countries where they sell the majority of their vehicles.” He said Xperi spent two years aggregating content from broadcasters, technology platforms and service providers, and now aggregates content from 47,000 stations in 48 countries, with an eventual goal of 75,000 stations and 68 countries.
Watch the webcast and let me know what you think. I’m at radioworld@futurenet.com.
The post Xperi Has Big Ambitions for DTS AutoStage appeared first on Radio World.
CNN Looks at Late-Night TV
By Joshua Dudley
Podcast Business Journal
CNN Audio has announced the upcoming podcast launch of Behind The Desk: The Story of Late Night.
The podcast will explore the history of late-night television from its beginnings to its present.
Hosted by CNN contributor and former New York Times media reporter Bill Carter, the podcast, produced by CNN Audio and Cream Productions, will release its first two episodes on April 22 on all podcast platforms, with subsequent episodes released every Thursday.
The trailer is available here.
“I’ve covered late-night TV for a long time, long enough to know it’s filled with fascinating personalities, big moments, big laughs, all kinds of conflicts, characters, craziness and compelling stories,” said Carter, author of the New York Times bestseller The Late Shift. “In our docuseries and our accompanying podcast, we’re going to take a deep dive into all of that–and have a lot of fun doing it.”
The series is a companion to the just-announced CNN Original Series, The Story of Late Night that will air on Sunday nights.
Where are those FMs In Auction 109?
The FCC this summer will conduct an auction of some 136 vacant non-reserved band allotments in the FM broadcast service, adding a small group of stations to the cancelled Auction 106 that had been set for March 2020.
Where are these FMs?
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How To Sell A New Idea, From The Inside
In 2010, radio industry veteran Lee Abrams, co-founder and CEO of V-Satcast (described as “a hybrid broadcast/broadband OTT multicast streaming platform with original highly differentiated branded programming channel”) penned the following RBR + TVBR Intelligence Brief.
In this Classic RBR+TVBR Media Information Bureau column, Abrams discusses how selling a new idea internally is often harder than the execution itself.
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