Monty Tayloe

TV broadcasters are seeing increases in commercial advertising, but they have concerns about being compensated for their programming and don’t see big M&A opportunities on the horizon, said Tegna, Gray Television and Sinclair Broadcast executives in those companies’ Q2 earnings calls last week. “Increased competition from technology companies, streaming content providers, and the [broadcasting] networks as well as continued regulatory constraints means that we must transform to remain relevant and to grow impressions and revenue,” said Sinclair CEO Chris Ripley.

The FCC unanimously approved an order and NPRM on digital FM, said an agency news release Tuesday (see 2301130053). The item was on the agenda for commissioners' open meeting Thursday but was instead voted Monday, and a deletion notice was issued. Stemming from petitions filed by NAB and Xperi, the item proposes relaxing restrictions on digital FM power levels to make it easier for more stations to improve their digital FM coverage. The FCC said the proposals in the NPRM would “offer more efficient FM digital operation, increase digital signal coverage and provide a more robust digital signal for reception inside buildings,” though some raised concerns about increased interference. “This would AM-ize the FM band,” said broadcaster Robert McAllan, CEO of Press Communications, referring to the high levels of background interference from multiple sources in the AM band.

Broadcasting has “a black eye on Wall Street” after the FCC blocked the private equity-backed Standard/Tegna deal, said Beasley Media CEO Caroline Beasley at a Media Institute lunch Thursday. Beasley said the FCC should relax local ownership caps on radio to preserve local broadcasting: “We need interest from private equity, we need investment in our space.”

Congress should continue to fund the affordable connectivity program, the FCC may not be the right entity to regulate AI and the agency's spectrum auction authority should be restored, said former FCC chairs and commissioners at the Multicultural Media, Telecom and Internet Council’s 2023 virtual Former Chairs’ Symposium Tuesday. Panelists -- including former acting Chairwoman Mignon Clyburn and former Chairman Richard Wiley -- also discussed diversity, the failed Standard/Tegna deal, and the confirmation of nominee Anna Gomez. Gomez is “a mainstream Democrat” who will “work well on a bipartisan basis,” said former Commissioner Jonathan Adelstein. “She’s not particularly ideological even though she’s been a strong fighter.”

The FCC’s 2022 $518,000 forfeiture order against Gray Television over the 2020 buy of another broadcaster’s CBS affiliation in Anchorage doesn’t violate the First Amendment and doesn’t amount to the creation of new regulations without notice, the agency said in a brief filed Monday in Gray’s challenge of that forfeiture (docket 22-14274) in the 11th U.S. Circuit Court of Appeals (see 2301040059).

An FCC draft order on FM6 low-power TV stations is expected to change little from the draft version and to be unanimously approved Thursday, FCC and industry officials said. The stations -- sometimes called “Franken FMs”-- broadcast primarily audio content that can be picked up with FM radio receivers and “will get to stay on the air and continue serving the public,” said Wiley broadcast attorney Ari Melzer, who represents several FM6 broadcasters.

A recent U.S. Supreme Court decision on affirmative action cases involving the University of North Carolina and Harvard could be used by opponents of an anticipated FCC order on equal employment opportunity data collection (see 2304190035 and could have repercussions for future FCC diversity initiatives and for industry diversity, equality and inclusion policies, said employment, civil rights and telecom attorneys in interviews.

Broadcasters say they need to use encryption and digital rights management (DRM) on their ATSC 3.0 streams to make the service a safe place for content, but early adopters, consumers and public interest groups say doing so cuts off the only existing low-cost ways to receive ATSC 3.0 transmissions. Broadcast consortium Pearl TV told us new, working external tuners will be available in weeks, but until they hit the market, the only option is “a $600 television set,” said Tyler Kleinle, who discusses broadcast tech on YouTube as The Antenna Man. “I do not like the fact all these broadcasters are putting DRM up before there are any solutions to this issue,” said Jason Shallcross in one of hundreds of similar comments that appear to be posted by individual consumers in the past week in docket 16-142: “Its like they are trying to implement it as fast as they can before anyone can comment on it.”

Companies holding international Communications Act Section 214 authorizations should be preparing for the FCC’s one-time data collection authorized in April (see 2304270039) and brace for tighter foreign-ownership disclosure rules and additional filing requirements to come out of that order’s accompanying NPRM, said Morgan Lewis attorneys Patricia Cave and Ulises Pin in an Incompas webinar Wednesday. Once the data collection order takes effect, companies need to “start reacting relatively quickly because there's going to be a short window in order to react” -- probably 30 days -- and the penalty for failure to do so could be “significant,” said Pin.

A petition from the Media and Democracy Project (MAD) and former Fox executive Preston Padden asking the FCC to hold a hearing over and block a Fox-owned TV station’s license renewal isn’t likely to lead to agency action and would raise First Amendment concerns if it did, said attorneys we spoke with. Said MAD: “Owning a broadcast station is more than a business -- it is a public trust. Never before has the Commission been confronted with so much evidence attached to a petition that clearly shows that an FCC broadcast licensee undermined that trust." The FCC has historically stayed out of broadcaster editorial decisions and isn’t likely to change that, said Fletcher Heald broadcast attorney Frank Montero.