Industry News

Concern Over FM Station Class “A10” Proposal

FCC Under the Federal Communications Commission’s consideration is a proposal from Commander Communications Corporation that would create an FM broadcasting class known as “A10.” In addition to enhancing coverage in rural and underserved areas, it would grant power upgrades for roughly 1,400 Class A FMs, allowing a maximum of 10,000 watts. Approval would depend on a station’s geographical zone; tower height; and separation requirements. While the National Association of Broadcasters recognizes potential benefits for listeners – especially during emergencies – it urges caution owing  to possible negative impacts. The NAB generally supports proposals designed to improve coverage areas, but says the “A10” proposal lacks technical analysis and information on how many stations may be upgradable. An NAB filing notes that, “While this could lead to improved service for additional listeners, it could also further squeeze the band in more markets and impact more FM services.” Also opposed is Cumulus Media, which cites an “unacceptable risk” to stations already competing against streaming services. Conversely, the Multicultural Media, Telecom & Internet Council favors the suggestion, stressing that many stations that would qualify for the upgrade are owned by minority and small-scale operators. This proposal would replace an earlier FCC one for a Class C4 FM station category. More than 100 independent and minority owners backed the idea, but it ran into opposition from larger companies and the NAB.

Industry News

NAB Challenges FCC’s Broadcast Ownership Restrictions

The National Association of Broadcasters filed its initial brief in its challenge to the Federal Communications Commission’s local radio and television ownership restrictions. NAB says the Commission has increased the regulatory burden on the industry from its periodic review of its broadcast ownership rules after Congressim intended it be a deregulatory exercise. NAB says, “The Local Television and Radio Rules retain and even tighten decades-old restrictions on which – and how many – television and radio stations broadcasters may own in a particular geographic market. The rules are premised on the notion that broadcasters could exert disproportionate influence by shaping news and entertainment options. But that idea is a relic from a bygone era – before the emergence of the Internet, smartphones, social media, and streaming. In reality, broadcasters today struggle to keep pace with rapidly proliferating audio and video platforms that are steadily taking audience share and advertising dollars. Instead of making it harder for broadcasters to compete, the Commission should have modernized its outdated rules because they are no longer justified. Given the significance of the Commission’s rules, the size of the regulatory record, and the number of parties involved, Petitioners respectfully submit that oral argument would be beneficial.”

Industry News

State Associations Lobby for Broadcast VOICES Act

In a letter to congressional leaders, the 50 state broadcasters associations are seeking support for and passage of the Broadcast VOICES Act that would reinstate the tax certificate program at the Federal Communications Commission, encouraging investment in TV and radio broadcast station ownership for women and people of color. They note that from 1978 to 1995, the Minority Tax Certificate program established at the FCC provided a tax incentive to individuals who sold their majority interest in a broadcast station to people of color. They say, “During that time, TV and radio broadcast station ownership by people of color increased by more 550%. Fast forward to 2024, diverse ownership in our industry has drastically changed not due to lack of effort or interest, but due to lack of access to capital. Currently, women make up less than 6% of broadcast TV station owners and people of color make up less than 3%. When it comes to broadcast radio station owners, women make up around 7% of owners and people of color make up less than 3%. Broadcasters provide an invaluable resource to all communities, serving as a local and trusted source for news and information across the country. Our strength is in our ability to cover diverse community experiences and tell stories from an authentic perspective. The tax certificate program will help us build a local media landscape that reflects our communities on the air, both in the control booth and boardroom. Additionally, the Broadcast VOICES Act will help with building a pipeline for a new generation of broadcast station owners that is inclusive of women, people of color and other underrepresented individuals. We therefore urge Congress to act swiftly and pass H.R. 8072 and S. 4158 to make sure that all voices are accurately represented in the broadcasting industry.”

Industry News

FCC to Look at Disclosure of AI in Political Ads

The Federal Communications Commission is announcing a new agency proposal that, if adopted, would look into whether the agency should require disclosure when there is AI-generated content in political ads on radio and TV. If adopted, this proposal aims to increase transparency by: 1) Seeking comment on whether to require an on-air disclosure and written disclosure in broadcasters’ political files when there isim AI-generated content in political ads; 2) Proposing to apply the disclosure rules to both candidate and issue advertisements; 3) Requesting comment on a specific definition of AI-generated content, and 4) Proposing to apply the disclosure requirements to broadcasters and entities that engage in origination programming, including cable operators, satellite TV and radio providers and section 325(c) permittees. Chairwoman Jessica Rosenworcel says, “As imartificial intelligence tools become more accessible, the Commission wants to make sure consumers are fully informed when the technology is used. Today, I’ve shared with my colleagues a proposal that makes clear consumers have a right to know when AI tools are being used in the political ads they see, and I hope they swiftly act on this issue.” However, Republican Commissioner Brendanim Carr opposes the move, saying, “There is no doubt that the increase in AI-generated political content presents complex questions, and there is bipartisan concern about the potential for misuse. But none of this vests the FCC with the authority it claims here. Indeed, the Federal Election Commission is actively considering these types of issues, and legislators in Congress are as well. But Congress has not given the FCC the type of freewheeling authority over these issues that would be necessary to turn this plan into law. And for good reason. The FCC can only muddy the waters.  AI-generated political ads that run on broadcast TV will come with a government-mandated disclaimer but the exact same or similar ad that runs on a streaming service or social media site will not? Consumers don’t think about the content they consume through the lens of regulatory silos. They just view content on screens. Will they conclude that the absence of a government warning on an online ad means that the content must be real? I don’t see how this type of conflicting patchwork could end well. Unlike Congress, the FCC cannot adopt uniform rules.”

Industry News

FCC Approves WMVP-AM, Chicago Transmitter Move

The Federal Communications Commission approves the transmitter moves and nighttime power reduction requested by Good Karma Brands for WMVP-AM, Chicago. The FCC denied the objectionim filed by Albert Adam David, who claimed the changes would create interference for other licensees. Good Karma proposes to relocate the WMVP facility approximately 31 kilometers to the currently licensed nighttime transmitter site of WCPT-AM, Willow Springs, Illinois. Good Karma proposes to retain WMVP’s Class A designation, operating frequency (1000 kHz), and 50 kW daytime operating power, but reduce nighttime operating power to 37 kW while diplexing nighttime transmissions with WCPT (WCPT broadcasts at 1.5 kW on a different frequency).

Industry News

Audacy Files for Chapter 11 and Enters into Restructuring Support Agreement

On Sunday (1/7) Audacy, Inc entered into a restructuring support agreement (RSA) with a supermajority of its debtholders on the terms of a comprehensive restructuring that the company says will “significantly deleverage its balance sheet and further position Audacy for long-term growth.” Through the restructuring, Audacy and its debtholders will undertake a deleveraging transaction to equitize approximately $1.6 billion of funded debt, a reduction of 80% from approximately $1.9 billion to approximately $350 million. The company does not expect any operational impact from the restructuring, and trade and other unsecured creditors will not be impaired. To implement the deleveraging transaction contemplated in the RSA, Audacy and certain of its subsidiaries commenced prepackaged Chapter 11im proceedings in the United States Bankruptcy Court for the Southern District of Texas and has filed a proposed Plan of Reorganization that incorporates the terms of the RSA and is subject to approval by the Court. Under the terms of the RSA, a supermajority of debtholders committed to vote in favor of the Plan, which, when approved, will reduce Audacy’s funded debt from approximately $1.9 billion to approximately $350 million. Audacy’s debtholders will receive equity in reorganized Audacy. Audacy expects that the Court will hold a hearing to consider the approval of the Plan in February and to emerge from bankruptcy once regulatory approval is obtained from the Federal Communications Commission. Audacy has filed with the Court a series of customary “First Day Motions” to obtain Court authority for the Company to continue operating its business in the ordinary course without disruption to its advertisers, vendors, partners or employees. Audacy expects to operate normally during this restructuring process under its current leadership team. During the Chapter 11 process, certain of Audacy’s existing lenders have committed to provide $57 million in debtor-in-possession (“DIP”) financing, comprised of $32 million of a new term loan and a $25 million upsize of the Company’s existing accounts receivables financing facility from $75 million to $100 million. Subject to the Court’s approval, the DIP financing and the Company’s cash from operations and available reserves is expected to enable Audacy to fulfill commitments to employees, advertisers, partners and vendors. Audacy common stock will continue to trade over-the-counter under the symbol “AUDA” through the pendency of the Chapter 11 process. The shares are expected to be canceled and receive no distribution as part of Audacy’s restructuring. Audacy chairman, president and CEO David J. Field states, “Over the past few years, we have strategically transformed Audacy into a leading, scaled multi-platform audio content and entertainment company through our acquisition of CBS Radio and by building leading complementary positions in podcasting, audio networks, live events, digital marketing solutions and our direct-to-consumer streaming platform. While our transformation has enhanced our competitive position, the perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending. These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring. With our scaled leadership position, our uniquely differentiated premium audio content and a robust capital structure, we believe Audacy will emerge well positioned to continue its innovation and growth in the dynamic audio business.”

Industry News

Anna Gomez Confirmed as Fifth FCC Commissioner

The U.S. Senate confirms Anna Gomez to a five-year term as a commissioner of the Federal Communications Commission. Gomez’s confirmation puts an end to two years of gridlock that’s left the Commission with four instead of the full complement of five commissioners. FCC chair Jessicaim Rosenworcel says, “Congratulations to Anna Gomez on her confirmation by the United States Senate. I look forward to welcoming her to the Commission. Anna brings with her a wealth of telecommunications experience, a substantial record of public service, and a history of working to ensure the United States stays on the cutting edge of keeping us all connected. Her international expertise will be a real asset to the agency. I look forward to working with her to advance the agency’s mission to ensure the benefits of modern communications reach everyone, everywhere and that the United States can continue to lead in the digital age.”

Industry News

Media Execs and Celebs Attend BFoA’s Golden Mike Gala

On Monday evening (3/6), 255 radio and television executives and celebrities gathered at the famed Plaza Hotel in New York City to honor Jack Abernethy, CEO of FOX Television Stations, with the 2023 Golden Mike Award, and Richard E. Wiley, former Chairman, Commissioner, and General Counsel of the Federal Communications Commission, and one of the most prominent media and telecommunications lawyers, with the 2023 Edward F. McLaughlin Lifetime Achievement Award. The annual gala is a fundraiser for the mission of the Broadcasters Foundation of America, which provides financial assistance to broadcasters in acute need.Pictured above are (from l-r): FOX 5 New York host Rosanna Scotto, Broadcasters Foundation chairman Scott Herman, Jack Abernethy, and Broadcasters Foundation president Tim McCarthy. Photo: Wendy Moger-Bross

Industry News

BFoA’s Golden Mike Dinner & Ceremony Set for March 6

The Broadcasters Foundation of America announces the host for this year’s BFOA Golden Mike Award dinner and ceremony is Emmy Award-winning broadcast journalist and nationally syndicated talk show host Soledad O’Brien. The 2023 BFOA Golden Mike Award gala takes place on March 6 at the Plaza Hotel in New York City. The annual event is the biggest fundraiser for the Broadcasters Foundation, whose sole mission is to provide aid to radio and television professionals in acute need. BFoA president Tim McCarthy says, “We’re very excited to have Soledad host this year’s Golden Mike Award dinner. She is a multiple award-winning broadcast journalist whose reporting has brought awareness on numerous issues to the forefront. Combined with her philanthropic endeavors, she is the perfect person to host our special evening.” This year’s BFOA Golden Mike Award honoree is Jack Abernethy, CEO of FOX Television Stations. The Lifetime Achievment Award will be presented during the gala frundraiser to Richard E. Wiley, former chairman, commissioner, and general counsel of the Federal Communications Commission and one of the most prominent media and telecommunications lawyers in broadcasting.

Industry News

Richard E. Wiley to Receive BFoA’s Lifetime Achievement Award

Richard E. Wiley is a former chairman, commissioner, and general counsel of the Federal Communications Commission and one of the most prominent media and telecommunications lawyers. He will be honored with the 2023 Lifetime Achievement Award from the Broadcasters Foundation of America during the Golden Mike Award gala on Monday, March 6, at the Plaza Hotel in New York City. The Lifetime Achievement Award honors an individual who has made invaluable contributions to the television and radio industries. BFoA chairman  Scott Herman says, “Dick’s commitment to fight for our industry in Washington has given broadcasters the opportunity to grow their business. His strong belief in our industry has extended to his support of the mission of the Broadcasters Foundation to help those in our business who need it most. We are honored to present him with the Lifetime Achievement Award.” Wiley comments, “I am honored to receive this Lifetime Achievement Award from the Broadcasters Foundation. Since arriving at the FCC more than 50 years ago and co-founding our DC law firm almost 40 years ago, it’s been a privilege to work with broadcasters on landmark innovations including the development of high-definition TV. I’m proud to be a part of this great industry’s evolution, and to support the Foundation’s mission of providing a critical safety net for members of the broadcast profession.” The annual Golden Mike Award gala is a major fundraiser for the Broadcasters Foundation, the only charity devoted exclusively to helping broadcasters in acute need. For information, or to reserve a seat or table at the Golden Mike Award gala and fundraiser, please contact the Broadcasters Foundation at 212-373-8250 or info@thebfoa.org.