Multiple Ownership Rules

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It’s a new year, and it’s time to look ahead at what Washington may have in store for broadcasters this year.  The FCC may be slow to tackle some of the big issues on its agenda (like the completion of 2018 Quadrennial Review or any other significant partisan issue) as it still has only four Commissioners – two Democrats and two Republicans.  On controversial issues like changes to the ownership rules, there tends to be a partisan divide.  As the nomination of Gigi Sohn expired at the end of the last Congress in December, the Biden administration was faced with the question of whether to renominate her and hope that the confirmation process moves more quickly this time, or to come up with a new nominee whose credentials will be reviewed by the Senate.  It was announced this week that the administration has decided to renominate her, meaning that her confirmation process will begin anew.  How long that process takes and when the fifth commissioner is seated may well set the tone for what actions the FCC takes in broadcast regulation this year.

Perhaps the most significant issue at the FCC facing broadcasters is the resolution of the 2018 Quadrennial Review to assess the current local ownership rules and determine if they are still in the public interest.  As we wrote last week, the FCC has already started the 2022 review, as required by Congress, even though it has not resolved the issues raised in the 2018 review.  For the radio industry, those issues include the potential relaxation of the local radio ownership rules.  As we have written, some broadcasters and the NAB have pushed the FCC to recognize that the radio industry has significantly changed since the ownership limits were adopted in the Telecommunications Act of 1996, and local radio operators need a bigger platform from which to compete with the new digital companies that compete for audience and advertising in local markets.  Other companies have been reluctant to endorse changes – but even many of them recognize that relief from the ownership limits on AM stations would be appropriate.…

Continue Reading Looking Into the Crystal Ball – What’s Coming in Broadcast Regulation in 2023 From the FCC

Here are some of the regulatory developments of significance to broadcasters from the past two weeks, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC, as required by the Communications Act, released a Public Notice announcing the start of the 2022 Quadrennial
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With the holidays upon us and the end of the year fast approaching, the FCC took care of one piece of business required by statute as it released a Public Notice announcing the start of the 2022 Quadrennial Review of the FCC’s ownership rules.  The FCC is required, once every four years, to review their local ownership rules to see if they remain in the public interest.  The Notice starts the review required for this year even though the 2018 review remains pending with seemingly little likelihood of any action as long as the FCC remains politically divided (currently two Republicans and two Democrats with one open seat).

So, unless the 2018 review is decided and finds that some existing rule is no longer in the public interest and abolishes it, the just announced new review (the “Quad,” as those in DC communications regulatory circles call it) will look at the same issues as the last one did.  Ownership rules governing the limits on radio ownership in each market, largely unchanged since they were first adopted in 1996, are probably the issue that could potentially affect the largest number of broadcasters (see our articles here and here on proposals for change in the radio ownership rules).  Also under review will be issues including the Dual Network Rule, which prohibits combinations of two of the Top 4 TV networks, and a possible clarification of the Top 4 rule on local TV ownership.  The Top 4 rule generally prohibits combinations of two of the Top 4 rated TV stations in any television market.  In 2017, the FCC voted to allow parties to seek a waiver of that prohibition.  Such waiver requests are evaluated on a case-by-case basis.  The proposal raised in the 2018 proceeding was to adopt some bright line tests as to when waivers would be permitted (e.g., allowing combinations of the two lowest rated stations if their audience share did not equal that of the first or second ranked station in the market). …
Continue Reading FCC Starts 2022 Quadrennial Review Before the 2018 Review is Complete – Time for Another Look at Radio and TV Local Ownership Rules

Here are some of the regulatory developments of significance to broadcasters from the past week, with links to where you can go to find more information as to how these actions may affect your operations.

  • By a Public Notice issued on December 15, the FCC’s Public Safety and Homeland Security Bureau told broadcasters to submit

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In the last few weeks, a Democratic Senator and a Republican FCC Commissioner have both expressed support for the future of AM radio.  This is not a new topic, being the subject of speculation for at least the last 20 years as FM listening caught up to and surpassed the older service’s audience.  But, when considering worldwide trends, a real question arises as to whether this inquiry is too narrow, and whether the FCC should not be taking more steps to insure the continuation of a free, local broadcast service.

In the last decade, the FCC has considered and, in many cases adopted, various proposals to revitalize the AM service – including providing FM translators for AM stations (see our articles here and here) and permitting all-digital AM operations (see our article here).  Other proposals, including one for across-the-board power increases for AM stations (see our article here) and another to lessen the interference protection enjoyed by high powered “clear channel” AMs, which would allow lower power local AM stations to increase nighttime power (see our article here), have not been adopted.  What new issues are being raised by these recent expressions of support from DC regulators?
Continue Reading Washington Worries About AM Radio – Senator Markey and Commissioner Simington Weigh in on the Future of the Service While Overseas There are Thoughts of Ending Broadcasting Altogether

Here are some of the regulatory developments of significance to broadcasters from the past week, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC issued a Forfeiture Order imposing a penalty of $518,283 against Gray Television, Inc., for violating the FCC’s prohibition

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Here are some of the regulatory developments of significance to broadcasters from the past week, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC released additional public notices in connection with the upcoming September 28 deadline for submission of annual regulatory fees.

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Kentucky Senator Rand Paul has introduced a bill to repeal all broadcast ownership limitations including the radio and television local ownership rules (see the draft bill, the Local News and Broadcast Media Preservation Act, here, and the Senator’s press release, here).  As we have noted before (see, for instance, our article here), the FCC is currently considering changes to the radio ownership rules but the proposals, first advanced in late 2018, remain stalled in the current FCC seemingly because of its current political deadlock with two Republicans and two Democrats.  The current pending proposal at the FCC (see our summary here) is also considering allowing combinations of two of the top 4 TV stations in a market based on certain defined parameters (such combinations being allowed now only when justified based on an ill-defined case by case public interest analysis).  The Paul legislation would essentially pre-empt this review by abolishing the FCC’s ownership rules.  Of course, being introduced so late in the Congressional session with no other declared political support, the bill has little chance of becoming law in this session of Congress.

The Paul legislation is designed to allow broadcasters to compete with big tech companies that have seriously eroded the advertising and audience shares of broadcast stations over the last decade (see our article here).  According to Paul’s press release, his bill “would give local broadcasters and newspapers much-needed relief from outdated government restrictions that are currently threatening their ability to succeed in an evolving media environment.”  As the broadcast media is the only media subject to such ownership restrictions, many have argued that, for a truly level playing field in today’s media landscape, a significant relaxation of the rules is warranted. …
Continue Reading Senator Rand Paul Introduces Bill to Repeal Broadcast Ownership Limits and Allow Joint Negotiations with Big Tech Companies

With the end of summer upon us, we begin to look forward to the regulatory issues that will face broadcasters as we barrel toward the end of the year.  One date on many broadcaster’s minds is the date by which the annual regulatory fees will be due to be paid.  While the payment date is almost certainly going to be sometime in September, look for an FCC decision on the amount of those fees at some point in late August.  As we wrote in last week’s summary of regulatory actions (and in many before), the amount that broadcasters will pay remains a matter of dispute, so watch for the resolution of that dispute by September, as fees must be paid before the October 1 start of the FCC’s next fiscal year.

But many other dates of importance to broadcasters will occur well before the resolution of the regulatory fee issue.  August 1 is the deadline for full power television, Class A television, LPTV, and TV translator license renewal applications for stations in California.  As we have previously advised,  renewal applications must be accompanied by FCC Form 2100, Schedule 396 Broadcast EEO Program Report (except for LPFMs and TV translators).  Stations filing for renewal of their license should make sure that all documents required to be uploaded to the station’s online public file are complete and were uploaded on time.  Note that your Broadcast EEO Program Report must include two years of Annual EEO Public File Reports for FCC review, unless your employment unit employs fewer than five full-time employees.  Be sure to read the instructions for the license renewal application and consult with your advisors if you have questions, especially if you have noticed any discrepancies in your online public file or political file.  Issues with the public file have already led to fines imposed on TV broadcasters during this renewal cycle.
Continue Reading August Regulatory Dates for Broadcasters:  Regulatory Fees, EEO Reports, Many Rulemaking Comment Dates, and More

The lazy days of summer continue to provide little respite from the regulatory actions of importance to broadcasters.  The good news is that there are no license renewal or EEO  deadlines during the month of July.  Nonetheless, there will be a number of July deadlines that require attention.

On July 1, comments are due on the FCC’s Office of Economics and Analytics annual call for comments on the State of Competition in the Communications Marketplace (see the Public Notice calling for these comments). The comments are used to prepare a report to Congress on communications competition issues and are sometimes referenced by the FCC itself in proceedings dealing with competition issues.  The FCC seeks comments on a list of questions about competition in both the Video and Audio marketplaces, including the impact of digital competitors on traditional providers and the role that regulation plays in the competitive landscape.  Reply comments are due August 1.

July 5 and July 18 are the comment and reply comment deadlines, respectively, for the FCC’s Notice of Proposed Rulemaking on the FCC’s proposed regulatory fees for fiscal year 2022.  The fees that the FCC is proposing for television (full power and otherwise) and radio stations are set forth in Appendix C and Appendix G of the document.  The FCC is proposing an increase of approximately 13% for radio broadcasters.  Among other things, the FCC proposes to continue to assess fees for full-power broadcast television stations based on the population covered by a full-service broadcast television station’s contour, and it seeks comment on its mechanism for calculating the regulatory fee based on the this population-based methodology.  These fees will be set by the end of August or very early September, to be paid before the October 1 start of the government’s new fiscal year. …
Continue Reading July Regulatory Dates for Broadcasters:  Quarterly Issues/Programs Lists and Other Public File Obligations, Lowest Unit Charge Periods, License Renewal, Copyright Filings and More