Foreign ID Draft Unlikely to Change Enough for Broadcasters
A tide of late opposition to the FCC draft order on foreign-sponsored content identification is considered unlikely to shift the item enough to fully assuage broadcasters' concerns (see 2104190044), industry officials told us. A draft item establishing a 10-application cap for the upcoming noncommercial educational (NCE) auction window is viewed as relatively uncontroversial at the FCC and is unlikely to change before Thursday’s commissioners’ meeting, industry and agency officials said.
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Though a host of broadcast entities lobbied against the current foreign-sponsored content draft, indications are that the item is still likely to be approved Thursday, despite a politically tied FCC. All four eighth-floor offices are involved “closely together” on reaching a solution on the item that is responsive to the ex parte filings, an FCC official said. An industry official said it's unlikely to be enough to suit broadcasters.
Provisions in the draft to require stations exercise “reasonable diligence” to ensure leasing agreements don’t involve an entity sponsored by a foreign government would create “many additional burdens” for industry, said National Association of Black Owned Broadcasters President Jim Winston. A legal challenge to the final order is likely, a broadcast industry official said. The agency didn’t comment Tuesday.
NABOB, NAB, NPR, the big four broadcast TV network affiliate groups and National Religious Broadcasters lobbied the agency for changes to the draft, most targeting the language on leasing agreements, per filings in docket 20-299. “The typical affiliate television station is likely to have dozens of agreements that would suddenly be covered by the new rules,” said the network affiliate groups in calls with an aide to acting Chairwoman Jessica Rosenworcel and bureau staff. Each agreement would require extensive licensee action, although these agreements don't raise issues the commission is attempting to address with the new sponsorship ID, they said.
“Instead of investigating every programming lessee, a station should only have to conduct diligence if it reasonably should have known that the lessee was a foreign government or” Foreign Agents Registration Act registrant, said Fox in calls last week with aides to Commissioners Nathan Simington and Brendan Carr. “This overly broad regulatory regime will have a harmful impact on our commercial television and radio station owners,” said NRB CEO Troy Miller. Most filings after the release of the draft were critical of the FCC’s position.
Broadcasters said they would support less-burdensome rules on foreign propaganda. “We agree with the FCC that viewers and listeners should know if content they are watching or listening to on the radio or TV is sponsored by a foreign government,” blogged NAB General Counsel Rick Kaplan Monday, attacking the draft as asymmetric regulation. The rulemaking is intended to target stations that air Russian and Chinese government-controlled media, not a broad swath of broadcasters, said REC Networks Michelle Bradley in an interview. NCE groups have supported the draft’s focus on leasing agreements because they mean the requirements are unlikely to apply to their stations.
A public notice setting a 10-application limit for the upcoming NCE FM window is considered unlikely to shift much before the meeting. Bradley, who had sought a five-application limit, said the higher cap will make it easier for speculators and larger entities to crowd out local broadcast operations.