Oh, the FCC

[Miguelito]

And while the FCC majority said the item does not have any tentative conclusions, Rosenworcel saw it differently: "We propose eliminating the dual network rule, clearing the way for the merger of our four largest broadcast networks," she said. "We propose allowing a single company to own an unlimited number of FM and AM radio stations in most communities in this country. That could mean one company controls every radio station in the town where you live."

You think Philly's radio dial is dullsville now? Wait til iHeart or Entercom owns all the stations!

The full story, titled "FCC Launches Quadrennial Review," is in yesterday's Broadcasting & Cable.

 

[TheBigA]

You think Philly's radio dial is dullsville now? Wait til iHeart or Entercom owns all the stations!

Not very likely. She was speaking sarcastically. She opposes removal of ownership limits.

From RadioInk.com:

Rosenworcel also believe competition matters. “It is axiomatic that more owners in more markets can mean more ideas. It can mean more news. The converse is also true. Too much consolidation can reduce the number of voices, jobs, and the newsgathering that results.”

 

[Miguelito]

Not very likely. She was speaking sarcastically. She opposes removal of ownership limits.

From RadioInk.com:

Rosenworcel also believe competition matters. “It is axiomatic that more owners in more markets can mean more ideas. It can mean more news. The converse is also true. Too much consolidation can reduce the number of voices, jobs, and the newsgathering that results.”

But that the FCC wants to try to forge ahead with it anyway. As if it makes any sense at all.

 

[b-turner]

It will never happen. There will always be competition. In fact, the 'big boy' radio groups don't own that many stations. Take a look at the non-commercial translators and FMs owned by a single entity. Most radio stations in the USA are not owned by the big companies. Granted many of the major market stations are owned by the big boys. I'm critical of some of what 'big boy' radio does as well but I must concede it works for them and the listener in general.

Funny thing: the big companies make it by creating radio that produces large numbers of listeners. Their objective is to get as many listeners to their stations as possible so they can sell commercials at a higher rate and take in more money. What might be dull to some, is a business model that works for many listeners. Only by creating radio people will listen to in mass numbers can these big boys remain in business. You might not like McDonalds by it works. You might not like Walmart but it works. My point is the number of overall radio listeners that find their stations are just fine with them far outnumber those that can't stand what they pass off as radio.

 

[TheBigA]

But that the FCC wants to try to forge ahead with it anyway. As if it makes any sense at all.

The Communications Act requires them to do what's called Quadrennial Ownership Review. That's what they're doing. There are a number of things they're discussing as part of that, but one company owning all stations is not going to happen. That would be outside their area.

As it is, the DOJ has to review any media mergers for monopoly. So even if the FCC removes ownership rules, the DOJ would step in. The other issue is money. The big companies are trying to hold down their debt. Just because they could buy every station doesn't mean they would. It would cost billions to make it happen.

Right now, they're in the "Comments" phase, where comments can be filed with the FCC about changes in ownership rules:

https://radioink.com/2018/12/13/fcc-begins-review-of-ownership-rules/

 

[Miguelito]

The Communications Act requires them to do what's called Quadrennial Ownership Review. That's what they're doing. There are a number of things they're discussing as part of that, but one company owning all stations is not going to happen. That would be outside their area.

As it is, the DOJ has to review any media mergers for monopoly. So even if the FCC removes ownership rules, the DOJ would step in. The other issue is money. The big companies are trying to hold down their debt. Just because they could buy every station doesn't mean they would. It would cost billions to make it happen.

Right now, they're in the "Comments" phase, where comments can be filed with the FCC about changes in ownership rules:

https://radioink.com/2018/12/13/fcc-begins-review-of-ownership-rules/

Hopefully they won't get fake-hacked and they will handle the comments a little better than they did with the net neutrality debacle.

 

[TheBigA]

Here's another article on the subject. Obviously not something that will be changed any time soon:

https://variety.com/2018/politics/n...-ownership-rules-1203088140/#article-comments

 

[ixnay]

You think Philly's radio dial is dullsville now? Wait til iHeart or Entercom owns all the stations!

The full story, titled "FCC Launches Quadrennial Review," is in yesterday's Broadcasting & Cable.

That's *Jessica* Rosenworcel, for those wondering.

https://www.broadcastingcable.com/news/fcc-launches-quadrennial-review

Reminds me of this Halloween stunt by the head of the DE Dept. of Transportation. I'm assuming Ms. Rosenworcel didn't pull a similar stunt...

https://www.facebook.com/delawaredo...-speaker-at-the-sussex-coun/2344541322227451/

ixnay

 

[gr8oldies]

Wasn't Jessica the commissioner who opined that Clear Channel was in "clear violation" of the main studio rule when the stations weren't staffed at 2am on that day in Minot?

There won't be "merger mania" if the rules are relaxed. I can see some groups strategically making a purchase or 2 (iHeart buying an FM companion for WLW comes to mind). I can actually see the unlimited AM advantage (no, the big boys aren't going to buy all the AMs in the country) but I could see a national rollout of higher powered TIS type stations.

 

[TheBigA]

There won't be "merger mania" if the rules are relaxed.

Exactly. Even if the FCC removes all ownership limits, the final approval is by the Department of Justice, and they are the ones who require companies to divest stations for competitive reasons.

For example, just yesterday the DOJ told Gray they had to divest stations in 9 markets for their merger with Raycom to be approved:

https://tvnewscheck.com/article/top-news/227008/doj-sets-divestitures-gray-raycom-ok/

 

[davideduardo]

Wasn't Jessica the commissioner who opined that Clear Channel was in "clear violation" of the main studio rule when the stations weren't staffed at 2am on that day in Minot?

If she did, she was mistaken. The main studio rule was always about the physical location of the studio facility, not whether the station was automated or live from that location.

And live or automated, the Minot Clear Channel cluster was fully equipped and ready to run any EAS alerts that authorities might have sent... but which they did not send.

 

[Bill_W]

As it is, the DOJ has to review any media mergers for monopoly. So even if the FCC removes ownership rules, the DOJ would step in. The other issue is money. The big companies are trying to hold down their debt. Just because they could buy every station doesn't mean they would. It would cost billions to make it happen.

Due to DOJ rules Entercom had to get rid of something to keep their % of revenue in the market lower than 40%. To get under that limit, they chose to sell WXTU back to Beasley when when buying WBEB as to not invoke antitrust by DOJ.

 

[atthestars]

Due to DOJ rules Entercom had to get rid of something to keep their % of revenue in the market lower than 40%. To get under that limit, they chose to sell WXTU back to Beasley when when buying WBEB as to not invoke antitrust by DOJ.

Is that 100% for certain? I heard Entercom spun off WXTU to make the purchase of WBEB more cash neutral. (Instead of $55M or so out of pocket... it was only about $20M after the sale of WXTU)

 

[Bill_W]

Is that 100% for certain? I heard Entercom spun off WXTU to make the purchase of WBEB more cash neutral. (Instead of $55M or so out of pocket... it was only about $20M after the sale of WXTU)

Fourth paragraph:

http://www.insideradio.com/free/ent...cle_290c6596-c2ef-11e8-a732-074db320341f.html

Kept the DOJ from getting involved with any antitrust questions.