Big-Fish Radio Capital Shaky in 2017

The second fiscal quarter’s come and gone, so it’s worth reviewing how the first half of the year’s played out for radio’s big-fish investment-games:

Clear Channel iHeartMedia: The #1 radio conglomerate in the country just extended its long-term debt refinancing offer to reluctant bondholders for the twelfth time. While going through those motions a key coalition of creditors — who hold more than 10% of iHeart’s $20+ billion debt – have been mulling over the implications of tipping the company into Chapter 11 bankruptcy.

Apparently, they’ve devised a plan by which if they’re given 49% of the company’s equity and more favorable debt-repayment terms, they’ll keep the debt-refinance shuffle going. After missing a full payment in 2016 the company ponied up on schedule this summer toward debt due in 2021. More than $8 billion comes due in 2019. Read More

Paper Tiger Apes Big Bad Wolf

The FCC’s taking a cue from the Three Little Pigs, huffing and puffing about the work it’s doing to combat the “problem” of pirate radio. Just in time for the National Association of Broadcasters’ annual Radio Show in Austin, the FCC’s gone on an enforcement spree of sorts over the last month or two.

With 158 enforcement actions on the books at the end of August, the agency is now on pace to meet or exceed the number of actions it took against unlicensed stations in 2016. For the eight years we’ve experienced of this decade so far, 2017’s enforcement-trajectory seems on target to rank as third or fourth-busiest.

States visited by the FCC hunting radio pirates, 2017Field agents have traveled far beyond the most popularly-recognized East Coast “hotspots” this summer. Arkansas gets on the board for the first time in the history of our Enforcement Action Database, while the closure of the Seattle FCC field office made it San Francisco and Los Angeles-based agents’ responsibility to visit Alaska in pursuit of a Baptist church – the first time since 2013 that the FCC’s made waves there. (Alaska is the 36th most active U.S. state/territory for pirate radio, just behind FCC Chairman Ajit Pai’s home state of Kansas.) Read More

Right-Wing Pirates: Hateful but Rare

The events of the last month in the United States should leave no question that a fascist, white-supermacist element is on the resurgence here. Spurred on by nationalist and hate-denialist sites like Breitbart, the Daily Caller, and other notable right-wing media conglomerates such as News Corp. (FOX News), Sinclair, and Salem, this despicable ideology has its own well-developed media ecosystem now.

Although much of this media-behavior’s out in the open presently, it’s cropped up throughout our history on broadcast stations that, by law, should not exist. I’ve written about some of these here, including ostansible pro-German prankster-stations during World Wars One and Two, and the curious case of Reverend Carl McIntire who, after creating a loose syndicated radio-version of the FOX News Channel in the 1950-60s, lost the licenses to his Pennsylvania radio stations in 1970. Read More

FCC’s Trumpist Trajectory Intensifies

The rotten hubris that is the Trump administraton is in full bloom at the FCC. It began when its leadership refused to defend core communications principles like free speech and press and flourished when they swore fealty to hypercapitalism and preemptively demonized those who may oppose their policy agenda. Now the dirty tricks have arrived. It’s all so far outside the already-troublesome norm of how media policy is made as to be head-spinning.

Let’s begin with the agency’s effort to repeal network neutrality regulations. An issue that’s overly complicated in most news coverage, the nation turns to John Oliver to make sense of it. He’s done this twice now – most recently in May, and as before his coverage inspired millions to visit the FCC’s public-comment site and make their thoughts known on the issue.

The first time, the public response in favor of net neutrality was so overwhelming that it crashed the FCC’s servers. This time, the system went down again…but the FCC claims that it was due to a malicious attack of unknown origin. According to (now-gone) Chief Information Officer David Bray, as Oliver’s latest segment went to air, “the FCC was subject to multiple distributed denial-of-service attacks (DDos). These were deliberate attempts by external actors to bombard the FCC’s comment system with a high amount of traffic. . .[they] were not attempting to file comments themselves; rather they made it difficult for legitimate commenters to access and file with the FCC.” Read More

FCC and Pirates: Going Through the Motions Faster

Signifying what the industry trades call a “crackdown” and added “pressure” on unlicensed broadcasters, the FCC’s Enforcment Bureau has stepped up its issuance of warning-letters, primarily to pirate stations in New York and New Jersey. Of the 94 enforcement actions against unlicensed broadcasters this year, 52 of them have taken place in these two states. Enforcement activity also includes two Notices of Apparent Liability and seven Forfeiture Orders, for cases that originated in 2015-16. Overall, however, the pace of enforcement actions is running behind the totals of a year ago.

This is not necessarily an expansion of enforcement duties. NYC-based field agents especially are now doing what they call “follow-up investigations” – in a nutshell, agents now re-visit unlicensed stations they’ve already contacted. If they are still on the air, they issue yet another warning letter to the operator (or, in the case of one New Jersey-based pirate, to the owner of the property where the station is housed, who was not in on the first-round contact). “Follow-up investigations” typically occur within 1-3 months of initial contact with the offending station. But if stations aren’t fazed by the first FCC nastygram they get, what are the odds the second one will change their ways? Read More