Broadcasters Warm to Prospect of Schumer's Growing Senate Power

“From a broadcast perspective, he is always willing to listen,” New York State Broadcasters Association President David Donovan told us. “He does not agree with us on everything, but he is willing to look at the facts and make a decision.” Schumer would be a “great” Senate leader and ensure “a fair hearing” whatever the issue, Donovan predicted.

At a February NAB State Leadership Conference meeting in Washington, Schumer “said that he believed that Joint Sales Agreements, especially in smaller television markets, were beneficial to the public interest,” said David Oxenford, a broadcast attorney at Wilkinson Barker, in a blog post. “He said that he has sent a letter to FCC Chairman Tom Wheeler urging him to grant waivers to allow such agreements to continue. Coming from a Senator of the same political party as the Chairman, that call may have more impact than those that have previously gone to the FCC.”

“He had 600 broadcasters on their feet because he was speaking our language to some degree,” NAB Executive Vice President Dennis Wharton told us of the event. “He’s certainly someone you want in your corner.” At the NAB event, Schumer defended the need for tax deductions on advertising expenses and emphasized local TV’s refuge for objective journalism, Wharton said. He judged Schumer “razor-sharp smart” and “certainly his own man.” To see Schumer rise in leadership is “important,” Wharton said, dubbing Schumer “an effective advocate” even if he and broadcasters may not always be entirely aligned.

Last year, Schumer quietly partnered with Sens. Roy Blunt, R-Mo., and Barbara Mikulski, D-Md., to secure a provision in December’s FY 2015 omnibus funding package compelling the FCC to “outline the process and factors it will use in evaluating waiver requests regarding the recently promulgated rules addressing Joint Sales Agreements,” based on amendment text that Blunt had offered and withdrawn earlier (see 1412100041). Schumer led a letter to the FCC last June criticizing the FCC’s policies toward those agreements.

Donovan called Schumer “omnipresent” throughout New York. He cited letters Schumer sent to Secretaries of State Hillary Clinton and John Kerry “asking them to address potential issues with the Canadian government concerning Canadian TV channels and the TV incentive auction.” Schumer has outlined his goal for local TV and radio stations to be able to keep providing local news. “In this regard, he has noted that the FCC’s ownership regulations should not be implemented so to undermine this important policy,” Donovan said. “He has opposed attempts to limit the deductibility of advertising. Senator Schumer has also expressed concern over the increasing number of illegal pirate radio stations in New York City.” Donovan made personal donations to Schumer in 2012, 2013 and 2014. Schumer “has been a strong voice helping to protect the coverage areas of NY television stations during the incentive auction process,” the New York State Broadcasters Association said in naming Schumer the 2014 New Yorker of the Year. “He has also recognized the importance of retransmission consent to the television industry.”

Reid may not have been as out front on broadcaster issues because of David Krone, his adviser and former chief of staff, one broadcast industry attorney speculated. Krone spent years as an executive for Comcast and NCTA. But Wharton said Reid has been “a stand-up guy for broadcasters” over the years, suggesting lawmakers in politically “rough and tumble” states like New York and Nevada realize the significance of broadcasters and the “megaphone” they provide.

Schumer often has delved into telecom and media policy, such as in his strong advocacy for Communications Act Title II reclassification of broadband during the FCC’s net neutrality proceeding. Schumer stood alongside Sens. Al Franken, D-Minn., Ed Markey, D-Mass., and Bernie Sanders, I-Vt., pushing for Title II in July (see 1407160036), the same season that Reid’s Krone was privately telling Wheeler that he was lobbying the White House to “back off” Title II (see 1503170057). Schumer also championed legislation in the last Congress targeting cellphone theft. First elected in 1998 and in the midst of his third term, Schumer is a ranking member of the Rules Committee and sits on Finance, Banking and Judiciary.

Industry money already has flowed to Schumer in his current leadership position. In the 2013-14 election cycle, Comcast’s political action committee was tied for top contributor to Schumer’s leadership PAC with its $30,000 offering, according to the Center for Responsive Politics, and between individual and PAC donations, Comcast gave $71,600 during that cycle. Time Warner Cable’s PAC gave $25,000 to the leadership PAC. Comcast CEO Brian Roberts and Executive Vice President David Cohen each gave Schumer donations of $2,400 during his 2010 campaign. In 2009 Schumer received donations from Time Warner Cable executives, including Glenn Britt and Rachel Welch. During the last election cycle, the communications and electronics sector gave Schumer $90,100. That included $10,000 from Dish; $5,500 from CTIA; $5,000 from AT&T; $4,500 from Verizon; $3,500 from T-Mobile; $3,000 from Motorola; $2,500 each from Sprint and Windstream; and $1,000 each from CenturyLink, NAB, PCIA, USTelecom and Viacom.

Video issues are widely expected to remain controversial throughout this Congress and beyond. Sen. John Thune, R-S.D., introduced a broadcast a la carte bill known as Local Choice last Congress that prompted intense lobbying backlash from broadcasters. Thune, now chairman of the Commerce Committee, has said he wants to revisit Local Choice, as have several pay-TV industry stakeholders.