impact of new technology on broadcasting

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Wasting no time following the reopening of the government, the FCC has published its Notice of Proposed Rulemaking in the 2022 Quadrennial Review in the Federal Register, setting December 17 as the deadline for initial comments on the questions asked by the FCC.  We summarized the issues raised by the FCC in our article here.  While the FCC will review the local radio ownership limits for television, following the prohibitions on owning two of the top 4 TV stations in a market being thrown out by the 8th Circuit Court of Appeals in July (see our article here), that FCC review will focus principally on whether the ownership limit of two TV stations in a market should be continued, or if one party should be able to own more. The 39% cap on national ownership of TV stations is being considered in a separate proceeding (see our discussion here).  The FCC will also look at the dual network rule, which currently forbids the common ownership of two of the top 4 TV networks.  With control issues seemingly settled for now at the networks, pressure to move on reform of that rule may have lessened.  Probably the biggest impact of the Quadrennial Review will be on radio, where the local ownership rules have remained unchanged since 1996, limiting one owner from owning more than 8 stations (only 5 of which can be FM stations) in even the biggest markets with more than 45 total stations. 

Radio’s role in the media marketplace has become more and more challenging over the last decade, as its traditional place in the car has been challenged by new audio entertainment options.  As those options proliferate, sounding and functioning  more and more like radio, they are becoming more accessible to the public and more and more popular with listeners.  Over-the-air radio now competes with streaming services, podcasts, satellite radio, and other audio media.  These changes in listening habits are coupled with a change in the advertising marketplace, as the digital media giants now take over two-thirds of the local advertising market that was once the province of radio, television and newspapers.Continue Reading December 17 Comment Date Set in 2022 Quadrennial Review Looking at Local Ownership Rules – What is at Stake, Particularly for Radio?

There can be no doubt that local newspapers have been significantly impacted over the last two decades by the ascent of the Internet.  And, as we have written before (see, for instance, our article here), digital media has also had a significant impact on the local revenues of broadcasters, who also have traditionally specialized in covering local events.  To study the effect of the decline in local news sources, legislation has been introduced in both the House and Senate to create a government committee to look at various aspects of this issue. The “Future of Local News Committee” would include individuals appointed by the majority and minority in the House and Senate, as well as individuals selected by the Corporation for Public Broadcasting, The National Endowment for the Humanities, and the US Agency for Global Media.  Each appointee is to be someone experienced in some aspect of local media.  The committee would have one year to deliver a report to Congress.

What would they study?  The legislation suggests that the committee would have broad investigatory powers to review how the change in local media has affected local communities.  The bill’s preface includes language stating that over 2000 newspapers have gone out of business since 2004, and that of the 6,700 remaining, 1000 could be classified as “ghost newspapers” whose staffs have been so reduced that they cannot effectively cover local events.  The bill also cites a Pew Research study that shows that local newsroom employees at newspapers, broadcast outlets and digital sources dropped 25% from 2008-2018.  Perhaps most startling is the statement that newspapers alone lost more than $35,000,000,000 in revenue between 2004 and 2018.  All these factors, and many others cited in the bill, are alleged to show that local media can no longer effectively cover local events.
Continue Reading Does Local News Need Government Assistance to Survive – Legislation Proposed to Set Up Commission to Study the Impact of Changes in Local Media on Local Communities  

Is the release of the long-awaited Future of Media Report at hand?  Since January 2010, the FCC has been studying the Future of Media, a study conducted by a Special Advisor to the FCC Chairman who was appointed in November 2009.  The study was to provide important research and analysis of how broadcasting and other…