The FCC yesterday released an Order announcing its adjustments to its application fees for commercial broadcasters and other FCC licensees. The fee schedule reflects a 3.7% cost of living increase in the processing fees that are paid when broadcasters file an application with the FCC. Fees for broadcast applications can be found starting at page 27 of the PDF containing the Order. The increases are modest – for example, the fees for a minor change, an assignment, or a transfer application increase from $1070 for to $1110 per station. These new fees will be effective 30 days after this Order is published in the Federal Register. So, if you are planning an FCC application that will be filed a few months from now, pay attention to the effective date of the new fee schedule to avoid having your application bounced for paying an incorrect fee.

The FCC recently released a Public Notice reminding all EAS participants that they need to file ETRS Form One by August 27, 2018. This form needs to be filed by all radio and TV stations, including LPFM and LPTV stations (unless those LPTV stations simply act as a translator for another station). While the FCC has not announced another nationwide EAS test for this year, the FCC still requires that the form be updated on a yearly basis – with a separate Form One being filed for each encoder, decoder, or combined unit used by any station or cluster.

The Public Notice provides information about where to file the form, and also links to this help page on the FCC website that provides information about completing the form. These Frequently Asked Questions are also helpful. They note the information that needs to be submitted in the ETRS form, including the geographic coordinates of the station (with latitude and longitude in NAD83), and various information about the station’s “designation”, monitoring assignments and “geographic zone” – all information that should be set out in the state EAS plan for the state in which the station is located. As it may take some time to locate all of the required information to make sure that any station’s Form One is current and accurate, stations should not delay in beginning to work on this form.

Last week, in our calendar of regulatory dates for broadcasters in July, we reminded broadcasters that their Quarterly Issues Programs lists needed to be placed in their public file by today, July 10. This quarterly requirement has been in place for over 30 years, but is still an obligation whose breach has led to more fines in connection with license renewals and FCC inspections than perhaps any other. As the license renewal cycle beings for radio again next June with the filing of renewals by radio stations in 3 states and the District of Columbia, and the renewal cycle begins for TV in 2020, these lists will again be subject to scrutiny by the FCC and other interested parties. With all of these lists now required to be in each full-power station’s online public inspection file, they will also be far easier to check than ever before. We wrote about the importance of these lists here, and urge every broadcaster to make sure that the lists for the past quarter are posted to your online public file by the end of the day today – and that you take seriously your obligation to report in these lists how your stations have addressed in your programming the issues of importance to the communities that you serve.

Last week, the FCC issued a Public Notice announcing that it was lifting the freeze on minor changes for LPTV and TV translator stations – a freeze that had been in place while the displacement window for stations displaced by the TV incentive auction was taking place (see our articles here and here on that displacement window for LPTV and TV translator stations). Now, with the lifting of the freeze, minor change applications for these stations can be filed. This would allow for applications for changes in these stations, like transmitter site modifications, as long as the proposed facilities protect existing full-power, LPTV and TV translator stations, and applications filed during the displacement window.

July brings the obligation for each full-power broadcaster to add a new Quarterly Issues Programs List to their online public inspection file. These reports, summarizing the issues facing each station’s community of license in the prior three months and the programs broadcast by the station to address those issues, must be added to the public file by July 10. As we wrote here, these reports are very important – as they are the only documents legally required by the FCC to show how a station served the public interest. With the online file, these reports can be reviewed by anyone with an Internet connection at any time, which could be particularly concerning for any station that does not meet the filing deadline, especially with license renewals beginning again next year.

Also to be filed with the FCC by July 10, by full-power and Class A TV stations, are Quarterly Children’s Television Reports. While the FCC announced last week that it will be considering a rulemaking proposal at its July meeting to potentially change the rules (see its proposed Notice of Proposed Rulemaking here), for now the requirements remain in place obligating each station to broadcast 3 weekly hours of programming designed to meet the educational and informational needs of children for each free program stream transmitted by the station. Also, certifications need to be included in each station’s online public file demonstrating that the station has complied with the rules limiting the amount of commercialization during children’s television programs. Continue Reading July Regulatory Dates for Broadcasters – Quarterly Issues Programs Lists and Children’s Television Reports, EAS Reform, LPFM and FM Translators, C Band Earth Stations and More

The FCC this week announced its next EEO audit – one limited to only 69 radio stations. No television stations or cable systems were included in the audit notice. The Notice is available here, and list of stations involved is here. Responses to the audit are due August 6. Unlike the last audit (about which we wrote here), the responses will be sent to the FCC’s EEO division, not posted solely on the station’s online public file. Stations, of course, still have the obligation to post their response on the online public file, but they also have to submit the audit to the FCC.

If any station in your cluster is on the list of audited stations, all stations in that “station employment unit” (a group of commonly owned stations serving the same area with at least one common employee) must respond. If that cluster has 5 or more full-time employees, it must observe the FCC’s EEO requirements and respond to this audit, providing significant information about its hiring in the last two years.  Stations with fewer than 5 employees need provide only limited information about the positions of its employees and whether the station has been subject to any federal or state EEO complaints or legal actions. If a station that is being audited is involved in an LMA or time brokerage agreement with another broadcaster, the audit may require that the broker provide employment information as well as the licensee.  There are some exceptions where stations can be excused from the audit if they were recently renewed or audited. Continue Reading 69 Radio Stations Receive FCC EEO Audit Letter

The National Association of Broadcasters radio board last week voted on a proposal to revise the FCC rules limiting the number of stations that one company can own in a radio market. This proposal was forwarded to the FCC for consideration in the next Quadrennial Review of the FCC’s ownership rules, scheduled to commence at some point later this year, in a letter delivered to the FCC’s Chief of the Media Division. The NAB suggests that one party should be able to own up to 8 FM stations in any of the Top 75 Nielsen radio markets. It proposes that there should be no FCC ownership limits in markets smaller than the Top 75, and that AMs do not need to be counted against the ownership limits. Owners who incubate the ownership of stations by new entrants into broadcasting would be allowed to own up to two additional FM stations in a market. Why would the NAB take this position?

The letter sets forth many of the same issues that we cited in our article on radio ownership here. Competition is significantly different than it was in 1996, when the current rules setting limits at 8 stations in a market (only 5 of which can be AM or FM) in the largest markets, and in the smallest markets, only two stations (one AM and one FM). As we wrote in our April article, competition for listening like Pandora, Spotify or even YouTube did not exist in 1996 (not arriving on the scene for another decade). Changes in competition for local advertising has been even more dramatic, with some sources showing that over 50% of local advertising revenue (the bread and butter of local radio) is now going to digital competitors – with Facebook, Google, and even the digital music services selling advertising to local advertisers throughout the country, even in the smaller markets. Continue Reading NAB Asks For Changes in FCC Local Radio Ownership Rules – What’s Next?

By now, you have probably heard that the European Union (EU) has a new data protection law on the books, the General Data Protection Regulation (GDPR) – but what are the new rules, and how might they apply to broadcasters? Below we address these and other commonly asked questions about the GDPR.

What is the GDPR? The GDPR is a new European privacy law that, as of May 25, 2018, generally governs how organizations – including those EU-based and many that are not – collect, use, disclose, or otherwise “process” personal information. While some limited exceptions exist (e.g., businesses with fewer than 250 employees are exempt from some requirements), the GDPR imposes an array of obligations on companies subject to it.

Who does the GDPR apply to? The GDPR clearly applies to companies established in the EU that collect personal information about individuals in the EU, but it also claims a broad extraterritorial reach. Indeed, it can apply to organizations, including broadcasters, without an EU presence. For instance, it can apply to broadcasters who collect or use data to provide services like streaming TV or radio to individuals in the EU. It also can apply to broadcasters who use website cookies and other online tracking mechanisms to “monitor” individuals in the EU (e.g., profiling for behavioral advertising). That said, it remains to be seen whether regulators will enforce the GDPR against companies that for the most part are not serving EU citizens and do not have EU operations, but may occasionally and unknowingly acquire data of an individual in the EU or an EU citizen in the United States. Continue Reading What Do Broadcasters and Media Companies Need to Know About the GDPR?

We are less than one year away from the beginning of the next radio license renewal cycle. By June 1 of 2019, radio broadcasters with stations licensed to communities in Maryland, Virginia, West Virginia and the District of Columbia must have their license renewal applications on file. Stations in certain southeastern states follow two months later, with other states to follow every two months until the cycle ends 3 years after it began with the filing of renewals by stations in the northeast. The FCC’s list of state-by-state renewal deadlines is available here. The TV cycle begins the year after the radio cycle and progresses in the same order. We wrote here about how the online public inspection file will heighten scrutiny of the performance of stations in meeting their public service obligations – and the particular importance of timely preparation and uploading of the Quarterly Issues Programs lists – the only officially mandated documents showing how stations addressed issues of importance to their communities in their over-the-air programming. But there are other issues that stations should be considering in this year before renewals are filed.

From time to time in this run-up to the renewal, we will highlight issues that station owners should be considering. In the last week, there have been a few issues that that were highlighted by FCC announcements of fines levied on broadcasters for various rule violations. One obvious issue is making sure that you stay on top of the deadlines, and don’t forget to timely file the renewal application. An FCC decision released yesterday fined a station $1500 for failing to timely file its renewal in the last renewal cycle. This station filed its application about 4 months late, just before the license expired (broadcasters file their renewals 4 months in advance of the expiration of the license to give the FCC time to review and grant the renewal before the current license expires). In the past renewal cycle, other stations were fined even more when they waited even longer to file their late renewals. Obviously, it is important to stay on top of the filing deadlines. Continue Reading Countdown to License Renewal – Recent FCC Decisions Highlight Some Issues to Consider

In the last year, the popularity of Alexa, Google Home and similar “smart speaker” devices has led to discussions at almost every broadcast conference of how radio broadcasters should embrace the technology as the new way for listeners to access radio programming in their homes. Broadcasters are urged to adopt strategies to take advantage of the technology to keep listeners listening to their radio stations through these new devices. Obviously, broadcasters want their content where the listeners are, and they have to take advantage of new platforms like the smart speaker. But in doing so, they also need to be cognizant that the technology imposes new costs on their operations – in particular increased fees payable to SoundExchange.

Never mentioned at these broadcast conferences that urge broadcasters to take advantage of these smart speakers is the fact that these speakers, when asked to play a radio station, end up playing that station’s stream, not its over-the-air signal. For the most part, these devices are not equipped with FM chips or any other technology to receive over-the-air signals. So, when you ask Alexa or Google to play your station, you are calling up a digital stream, and each digital stream gives rise to the same royalties to SoundExchange that a station pays for its webcast stream on its app or through a platform like TuneIn or the iHeartRadio. For 2018, those royalties are $.0018 per song per listener (see our article here). In other words, for each song you play, you pay SoundExchange about one-fifth of a cent for each listener who hears it. These royalties are in addition to the royalties paid to ASCAP, BMI, SESAC and, for most commercial stations, GMR. Continue Reading Hey, Alexa, How Much Did You Raise My SoundExchange Royalties?