Sinclair will have a hard time buying TV stations until outstanding character questions affirmed in an FCC administrative law judge ruling Tuesday (see 1903050022) are resolved, said broadcast attorneys and media brokers in interviews. ALJ Jane Halprin dismissed the agency's Sinclair/Tribune hearing designation order but said the allegations against Sinclair “reasonably warrant a thorough examination,” and should be considered when Sinclair is seeking commission approval for a license transfer or renewal.
An FCC proceeding on TV ratings isn’t likely to lead to agency action beyond its congressionally required report (see 1902260059) but could put public pressure on programmers, said attorneys and content-industry officials in interviews. Though the PN released last week seeks comment only on the ratings and ratings board, longtime rating system critic Parents Television Council wants the proceeding to lead to pressure on the programmers comprising the ratings board and possibly the FCC's dissolving the system. PTC’s influence is seen as a reason for the directive in the 2019 Consolidated Appropriations Act ordering the FCC to report to Congress by May 15.
Sinclair was involved in recent broadcast TV mergers and acquisitions “processes,” but the properties went to other buyers at prices higher than it wanted to pay, said CEO Chris Ripley on a Q4 call Wednesday. Sinclair didn’t comment on which deals he was referencing. Recent M&A includes Cox’s proposed sale of stations to investment fund Apollo and Nexstar’s proposed buy of former Sinclair dance partner Tribune. Since issues from the outstanding hearing designation order stemming from the failed Sinclair/Tribune remain unresolved (see 1901040047), it’s widely believed Sinclair buying TV stations could trigger unwanted FCC action on its licenses. That’s been seen as something Sinclair would seek to avoid, and the broadcaster has opposed efforts to bring that matter before the FCC before the 2020 license renewal period (see 1812110062). Ripley has said the HDO won't keep Sinclair out of M&A (see 1810180024). Q4 revenue rose 25 percent, compared with Q4 2017, Sinclair reported, reaching $893.3 million. Executives are bullish about the company’s outlook, touting activity with regional sports networks, expected political advertising sales gains and progress on ATSC 3.0. Sinclair and SpectrumCo hope to begin broadcasting 3.0 in 20-30 markets this year, Ripley said. That's delayed waiting for the FCC to create an application form (see 1902260046). Sinclair is open to doing more sports deals similar to its recent one with the Chicago Cubs (see 1902130019), Ripley said. Sports content is the highest rated and the “scarcest” content, Ripley said. “You can't create more sports, you can create more of almost any other genre.” The rapidly increasing field of 2020 presidential candidates “really bodes well for local broadcasters” on political ad dollars, said Chief Operating Officer Steven Marks. In the lead-up to the election, broadcasters “aren’t gonna be able to get out of the way of all the money” pouring in for political ads, he said.
First steps in the ATSC 3.0 switch could be delayed by lack of an FCC license application form for the new standard, said Spectrum Consortium President John Hane at America's Public Television Stations Summit Tuesday, responding to our questions. SpectrumCo has over a dozen markets that could begin to transition by late summer, but that's unlikely if the document isn't released in the next few months, Hane said.
America's Public Television Stations will seek an additional $50 million in federal funding for public television in 2019, and is aiming to secure a $100 million total increase over the next 10 years, said APTS President Patrick Butler at the group's Public Media Summit Monday. It will seek $100 million in additional funding from states, and a third tranche of $100 million from renting out spectrum through ATSC 3.0, Butler said.
The FCC has shifted stances in its draft repacking reimbursement order and proposes using FY 2019 reimbursement dollars to pay back low-power TV, translator and FM stations as well as using the $200 million from FY 2018. The draft order was released Friday along with the tentative agenda. It includes items on spectrum horizons and other 5G changes, a proposal for new 911 wireless location accuracy requirements, a draft order setting intermediate carrier standards for rural call completion and rules on reauthorization of broadcast satellite stations.
FCC Commissioner Jessica Rosenworcel’s call for restrictions on e-cigarette ads isn’t likely to lead to direct FCC action, said e-cigarette industry officials and broadcast and First Amendment attorneys in interviews (see 1902140063). Rosenworcel isn’t necessarily aiming for an FCC rule against such ads, said broadcast attorneys and an aide in her office. “All I’ve done is called for the idea that the FCC, FTC, and [Food and Drug Administration] should come together, look at what laws are on their books, and identify if there are things we can do,” Rosenworcel said in a news conference last week. Commissioner Brendan Carr has said he would oppose such a move.
The FCC will vote on a repacking reimbursement order for low-power TV, FM stations and TV translators at its March 15 commissioners’ meeting, an FCC official told us. A media modernization item on broadcast satellite stations is also expected to be on the agenda (see 1803220027), the officials said.
TV broadcasters and NAB apparently resolved differences over what should happen to the national ownership cap and asked FCC Chairman Ajit Pai to pursue the association's proposal (see 1811270062) to keep the current 50 percent cap for UHF stations and extend it to VHF's, said an ex parte filing. NAB President Gordon Smith and representatives from factions that previously offered differing national cap plans -- including Nexstar CEO Perry Sook and Graham Media CEO Emily Barr -- brought the consensus to Pai Feb. 11, said a filing posted Thursday in docket 17-318. Lack of industry consensus was making it difficult for the FCC to act (see 1811010041).
The FCC’s media modernization effort should be scrutinized for ignoring “foundational statutory obligations” and bypassing policies “truly in need of modernization,” said new Commissioner Geoffrey Starks in an extended statement at Thursday’s commissioners’ meeting. Starks and Commissioner Jessica Rosenworcel voted “concur” on a unanimously approved order eliminating redundant midterm equal employment opportunity reports (see 1901180043). They urged the FCC to restore long-stalled collection of employment data on diversity. The agency will issue an Further NPRM on broad EEO enforcement within 90 days, Chairman Ajit Pai said.