O’Rielly Talks Tough on Pirates to Senate

Keeping in line with the Trump administration’s penchant for dehumanization, FCC Commissioner Mike O’Rielly used some of his time testifying in front of the U.S. Senate Commerce Committee last week to hype his signature issue: going to war on unlicensed broadcasting.

Calling them “squatters” who “are infecting the radio band,” O’Rielly whipped out all the now-familiar canards: that pirate radio “stations” (his quotes, not mine) somehow harm “consumer services” (whatever those might be), “emergency communications” (lacking any meaningful evidence that this is a tangible problem), and “the financial stability of licensed radio stations” (nah, that’s Wall Street’s fault). He references a claim from the Massachusetts Broadcasting Association that it’s identified some two dozen pirate stations “operating in one of their markets” (most likely the Boston metro area) and the numbers are growing. Read More

Radio Industry’s Money-Flings

The money-shuffle has intensified in the radio industry as of late:

Clear Channel iHeartMedia: Still saddled with more than $20 billion in debt – of which more than $8 billion comes due in 2019 – the company’s going to great lengths to shuffle revenue between its subsidiaries to keep on top of its obligations. The latest move involves iHeart’s outdoor billboard division, one of the more financially solvent of the bunch, turning over nearly 90% of its latest quarterly dividends to the parent company.

In addition, iHeart filed papers with the Securities and Exchange Commission recently regarding the potential for its outdoor division to acquire the intellectual property to the words “Clear” and “Channel.” This sounds like the corporate version of scrounging for change in couch cushions; no word on how much those two words, separately or in conjunction, might actually fetch.

iHeart’s recent debt-exchange, for which it traded notes due in 2018 for paper payable in 2021, was classified by Moody’s Investor Services as a combination “distressed exchange (DE) and a Default due, in part, to the extension of the maturity date beyond its initial terms and the company’s very high leverage levels,” further observing that “the company will remain poorly positioned to withstand an economic recession or any material weakness in terrestrial radio in the future.” Read More

Now They Tell Us: FCC, Congress Rethinking Enforcement Drawdown?

Radio World revealed earlier this month that the acting chief of the Enforcement Bureau, Michael Carowitz, held a videoconference with members of the Bureau’s field-agent staff. The call revealed that the FCC’s downsizing of its enforcement resources has begun, with 11 field offices closed over the last several months (Anchorage, AK; Buffalo, NY; Detroit, MI; Houston, TX; Kansas City, MO; Norfolk, VA; Philadelphia, PA; San Diego, CA; Seattle, WA; Tampa, FL; and San Juan, PR) and 14 remaining open.

At present, that leaves just 34 field agents covering the entire country – this includes one of two roving “Tiger Teams” of agents organized to backstop the decimated staff in-residence. That’s almost a cut of half from the prior force of 60 that spanned the nation. It’s also important to keep in mind that these agents are responsible for enforcing all FCC regulations, not just the broadcast license requirement. Read More

FCC Anti-Pirate Enforcement in 2016: Symbolic Inflationism Ahoy


A surprising uptick in the Enforcement Action Database for 2016: 201 total actions were logged last year, which is up from the prior two years. Furthermore, the frequency of threats of fines and actual fines against unlicensed broadcasters also rose: 9 NALs issued for a total of $155,000, and 5 forfeitures handed out for a total of $65,000. We haven’t seen numbers this large since 2014.

It gives some statistical credence to recently-former FCC Chair Tom Wheeler’s assertion that, despite the agency’s admittance that its license-enforcement protocol is effectively broken, it hasn’t ceded the field entirely. Unfortunately, statistics can be fudged, and the FCC’s done that well in the last year. Read More

Digital Radio: Norway and U.S. Pursue Different Paths, Yet Share Uncertainties

There’ve been some interesting developments in the digital radio realm over the last couple of months. The one that’s gotten the most press is Norway’s decision to begin shutting down its FM radio stations in favor of its DAB/DAB+ digital radio network. This has been a long time in coming, first proposed in 2015 by the Norwegian government and with buy-in from the country’s national broadcasters. That’s an important point, because the FM-shutdown, as reported in various press outlets, insinuates that all FM broadcasting in Norway is being silenced immediately.

Not true: the shutdown of stations that began this month, and continues incrementally throughout this year, only affects the country’s national broadcasters; local FM stations have at least another five years on the air before they, too, may be asked to cede the analog airwaves. A lot can happen in those years…at present, the popular sentiment in Norway about the FM shutdown is running 2-to-1 against it, especially as the analog stations disappear, their coverage areas are not served by DAB/DAB+ to the same extent as they were with plain ol’ FM, and Norwegians find themselves forced to buy digital receivers to stay engaged with radio.

It comes as no surprise that American journalists, seeing themselves at the center of the universe, would pose the question: could such an analog/digital shutdown happen here? If they were more knowledgeable about the digital radio technologies that exist they’d know the answer is no, as the U.S. has elected to use its own homegrown and proprietary digital radio technology, whose adoption is entirely voluntary. There’s also the fact that Norway only has a population of five million people — equivalent to the state of Wisconsin – and navigating a shutdown in a nation with 64 times the residents means an entirely different transition-mechanmism, which hasn’t even been seriously consered by any constituency here. Read More