The FCC is considered likely to grant requests from stations in Puerto Rico and the U.S. Virgin Islands for permission to move to their post-auction channel assignments early (see 1711150038), Gray Miller broadcast attorney Todd Gray told us. Two more TV stations in Puerto Rico joined the group of 15 stations in Puerto Rico and one in the U.S. Virgin Islands requesting the relief Friday, according to a letter in docket 16-306.
Cumulus Media’s restructuring will be a boon to the industry, and a similar restructuring of fellow radio behemoth iHeartMedia is expected soon, analysts, brokers and attorneys told us Thursday. Cumulus filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York Wednesday, as expected (see 1708090069). It was telegraphed when Cumulus missed a debt payment at the start of November (see 1711030002).
Social media helped to make America meaner and coarser, said FCC Chairman Ajit Pai at The Media Institute Wednesday, saying Americans need to decide if social media is a net benefit to the country. “I don’t have an answer,” said Pai, conceding his use of social media also helped to make him a better public servant: "This unprecedented medium for collaboration and connecting people feels like it’s dividing us.”
A paragraph in the FCC’s draft Blue Alerts order set for the December agenda gives the nod to a change in the way emergency alerts are handled that could have effects beyond the order's creation of a single BLU emergency alert system (EAS) code for law enforcement officers in danger. “We encourage EAS manufacturers and EAS Participants to take technical steps to facilitate the delivery of IPAWS [Integrated Public Alert Warning System]-based EAS Blue Alerts to the public where an alert is first delivered to an EAS Participant via broadcast,” the draft order said, giving EAS participants permission to favor the internet-based, more-information rich common alerting protocol (CAP) alerts over the more simple alerts transmitted by the legacy “daisy-chain” system.
A draft NPRM on the national broadcast ownership cap contains no tentative conclusions, seeks comment on broad questions about altering the cap and is seen as unlikely to lead to concrete agency action, FCC and industry officials said in interviews Tuesday. Both FCC Democrats issued statements Tuesday opposing proposed alterations to the cap, and Commissioner Mike O’Rielly appeared to reaffirm his previous comments that the agency doesn’t have authority to alter the cap, though expressing support for the NPRM. “While I have outlined my thoughts on the authority to alter the cap and UHF discount, I support the Commission asking these questions and look forward to seeing the issue be litigated out,” he said.
Thursday’s FCC vote to relax broadcast ownership rules is likely to spur TV dealmaking (see 1711160054) when it becomes clearer how the rules will fare in court, analysts and attorneys said in interviews. Uncertainty about how the FCC will apply its new standard for top-four duopolies and DOJ's views on big combinations in the same market are seen affecting deals. Transactions likely will wait at least until it becomes clear whether courts will stay the effectiveness of the changes, said BIA/Kelsey Chief Economist Mark Fratrik.
The FCC approved its ATSC 3.0 order 3-2 Thursday over the objections of Democrats, as expected (see 1711140053). Commissioners Jessica Rosenworcel and Mignon Clyburn were highly critical of 3.0's transition plan order, which was little changed from what circulated last month. The plan is “cavalier” about possible consequences for consumers and MVPDs, Rosenworcel said. “Not ready for prime time,” said Clyburn. The order intentionally doesn't address every aspect of the new standard, Commissioner Mike O’Rielly said. “Many questions remain,” he conceded. “This won’t be the last time we address ATSC 3.0,” he said.
FCC relaxation of media ownership rules is an industry “holiday wish list” and won’t survive a legal challenge, said Commissioner Mignon Clyburn in her dissent on the order, which was approved on a 3-2 party-line vote Thursday, as expected (see 1711150054). “I vociferously dissent and look forward to the day when the court issues a decision to right this sad wrong,” Clyburn said. Commissioner Mike O’Rielly said he had no doubt the new standard will end up back before the 3rd U.S. Circuit Court of Appeals. That court would be “hard pressed” to find the moves aren’t supported in the record, he said. O’Rielly said he hopes the FCC will appeal if the 3rd Circuit again strikes down rules.
The FCC is expected to eliminate or relax numerous media ownership rules Thursday on a party-line 3-2 vote, industry and agency officials told us. That's despite calls Wednesday by Democratic senators for the Inspector General (IG) to investigate Chairman Ajit Pai for a possible quid pro quo relationship with Sinclair Broadcast and for Pai to recuse himself from both the media ownership and ATSC 3.0 items (see 1711140053) since they would benefit Sinclair. The FCC’s impartiality in review of Sinclair buying Tribune “may be tainted,” said 12 senators, including Tom Udall, D-N.M., Elizabeth Warren, D-Mass., Maria Cantwell, D-Wash, Bernie Sanders, I-Vt., Richard Durbin, D-Ill., and Ed Markey, D-Mass.
The FCC’s draft ATSC 3.0 order is expected to be approved 3-2 on a party-line vote, and the few changes since it was circulated last month will largely favor broadcasters, industry and eighth-floor officials told us. MVPD groups lobbied hard for changes to the 3.0 transition plan, but broadcast and pay-TV officials said the final version would include few changes favoring their positions. Sinclair executives, meanwhile, downplayed privacy concerns with 3.0 (see 1711140046).