A combined $1.8 million proposed forfeiture for Nexstar and sidecar operation Mission broadcasting over Mission’s station WPIX New York will likely create uncertainty about similar arrangements that other broadcasters use, though attorneys and the FCC say Thursday’s notice of apparent liability is narrowly targeted. “We stress that the decision we reach today is limited to the facts before us and the relationship between Nexstar, Mission, and WPIX,” said the NAL. On the other hand, “If you’re a broadcaster with a sidecar, you’re saying ‘uh oh,’” said Holland & Knight attorney Charles Naftalin. Nexstar said it will dispute the enforcement action “vigorously.”
Monty Tayloe
Monty Tayloe, Associate Editor, covers broadcasting and the Federal Communications Commission for Communications Daily. He joined Warren Communications News in 2013, after spending 10 years covering crime and local politics for Virginia regional newspapers and a turn in television as a communications assistant for the PBS NewsHour. He’s a Virginia native who graduated Fork Union Military Academy and the College of William and Mary. You can follow Tayloe on Twitter: @MontyTayloe .
A draft order on circulation that would update the FCC’s foreign-sponsored content rules in response to a July 2022 U.S. Court of Appeals for the D.C. Circuit ruling against the agency could be interpreted to require that entities buying political issue ads must first show broadcasters they aren’t foreign agents, broadcast and FCC officials told us. That language could change before the item is approved, although when it will be voted on is unclear, FCC and industry officials said. The draft item “just creates more questions,” said Gray Television Senior Vice President Robert Folliard.
Trade groups critical of the FCC’s digital discrimination order disagreed Wednesday with members of its Communications Equity and Diversity Council about the order’s breadth. The order “covers every aspect” of an ISP’s service and could lead to companies slowing the rollout of service in some communities to avoid the appearance of discrimination, said Diana Eisner, USTelecom vice president-policy and advocacy, at an FCBA CLE. “Given the scope of the problem,” it was appropriate for the FCC to create a rule that could tackle multiple forms of discrimination, said Leo Fitzpatrick, policy analyst at The Utility Reform Network and a former CEDC member.
FCC Commissioner Anna Gomez received a waiver of her White House ethics pledge that will allow her to vote on agency enforcement items involving clients at her former employer, prominent telecom law firm Wiley.
FCC commissioners voted 3-2 Thursday, over dissents by Brendan Carr and Nathan Simington, to approve the agency's Telecom Act Section 706 report to Congress. The report concluded that broadband isn't deployed in a "reasonable and timely fashion," with about 24 million Americans lacking access to speeds of at least 100/20 Mbps. The two Republicans also dissented at the commissioners' open meeting on a proposed requirement that cable and satellite TV multichannel programming distributors display prominently the aggregate cost of video programming in ads and customer bills.
An FCC proposal prioritizing processing of applications from broadcasters that offer local programming (see 2401180074) won’t have much of an effect and doesn’t do enough, according to a wide swath of comments filed to docket 24-14 by Monday’s deadline.
An FCC proposal requiring that MVPDs reimburse customers for programming affected by retransmission consent blackouts (see 2401170072) is outside the agency’s authority, unworkable, and would lead to higher prices for subscribers, said MVPDs and MVPD trade groups in comments filed in docket 24-20 by Friday’s deadline. The rebate proposal would be an “unnecessary government intrusion into already difficult negotiations” and “disrupt the marketplace by placing the government’s thumb on the scale to the detriment of cable subscribers,” said NCTA.
An FCC draft NPRM proposing an emergency alert system code for missing adults is headed for unanimous approval with few changes at the commissioners' open meeting Thursday, agency and industry officials said (see 2402210066). The proposed Missing and Endangered Persons code (MEP) alert would be used for missing people older than 17 with special needs and circumstances or who are endangered, abducted or kidnapped. It is intended to fill a gap between Amber Alerts used for missing children and seniors' Silver Alerts. MEP would respond to the rising problem of missing and murdered indigenous people, said the draft NPRM. The item has drawn little ex parte activity since last month's circulation.
NAB and backers of the AM Radio for Every Vehicle Act (HR-3413/S-1669) are continuing to push for the bill’s passage, possibly by attaching it to a future omnibus appropriations package. The bill's supporters argue attaching the AM radio legislation to an omnibus appropriations package could help it overcome headwinds that have prevented its legislative approval since early 2023 (see 2401050065). CTA and other opponents of the measure argue it should go through a normal legislative process.
TV broadcast executives were dismissive of the planned ESPN/Warner Bros. Discovery/Fox sports streaming venture (see 240207000), largely confident about 2024 political advertising and predicted a looming shakeup on broadcaster compensation from streaming services during Q4 earnings calls for Nexstar, Gray, Sinclair, Tegna and E.W. Scripps. “I can’t see why analysts or investors would see this as a killer app,” Scripps CEO Adam Symson said of the joint venture. Said Nexstar Chief Operating Officer Michael Baird, “We have more questions than answers about this proposed product, including assurance that it will actually launch.”