HD Radio’s Next Bling Things

The closure of Tessera Technologies’ purchase of DTS Inc., the owners of iBiquity’s HD Radio system for just one short year, is set for sometime in December, and the combined companies will adopt a new name and stock symbol on NASDAQ in the new year. But just how much did the HD system itself drive its sale twice in 14 months, and what are the prospects for its future development?

Turns out, not very much on both counts: buried at the bottom of a story published by iHeartMedia-owned Inside Radio in early November was this gem: “DTS had been in sale mode since June 2014 when it was first approached with a $29-$32 per share buyout offer that proved to be too low for the board’s approval. But it set into motion the process that ultimately led financial advisors to shop the company. Tessera first appeared on the radar in August 2015 — two months before DTS bought the HD Radio business from iBiquity — and those discussions continued for months [emphasis added].”

In other words, DTS had put itself up for sale before negotiations began to acquire the United States’ troubled digital radio broadcast platform. And in fact, two months before DTS actually bought iBiquity and the HD system, it had already received acquisition-inquiries from Tessera. At the time, DTS’ board of directors considered the sale-price per-share too low…but what better way to bump that up to a more lucrative level then to acquire some additional intellectual property for the corporate portfolio? Read More

A Trump FCC and Pirate Radio: Prepare for Struggle

The United States is still trying to come to grips that it has elected a proto-fascist as its next chief executive. With the Republican Party in firm control of the legislature and the ability to shape the judiciary for the next several decades, lobbyists of all stripes are drooling at the prospects of a bona-fide kleptocracy.

Of all the things expected to be decimated in the Trump era, media and communications policy are among them. Others have already written about the potential for a GOP-run Trump FCC to undo several years’ worth of media reform efforts, such as network neutrality, media ownership limits, and many other things. We still don’t know who Trump may nominate to chair the Commission, though there’s talk that one of the two sitting GOP Commissioners may get the nod.

Neither will be good: Ajit Pai is a trenchant disciple of neoliberal economic theory, and pretty much sees all regulation as bad regulation; Mike O’Rielly, who helped write the Telecommunications Act of 1996 (though tellingly does not crow about it), is pretty much the same. But O’Rielly’s crusade to eliminate unlicensed broadcasting from the nation’s airwaves has gotten a significant boost with this election. Read More

Translators Now Constitute the Largest Number of U.S. Radio Stations

Revisiting a subject from three years ago: the health of U.S. radio by the FCC’s broadcast station totals. Published quarterly, these figures over time show the relative growth of station-classes, and trends especially over the last couple of years are quite eye-opening.

What sparked my interest was a celebratory missive from FCC Media Bureau Chief Bill Lake released last week. Having completed two filing-windows this year allowing AM radio stations to acquire FM translators, Lake says they’ve been a “resounding success” – nearly 1,100 translators changed hands, and the FCC has already signed off on the vast majority of these deals.

FCC Broadcast Station Totals, 1992-2016

The chart above tells the tale, tracking station-counts over the last 25 years. As of this year, FM translator and booster stations now comprise the largest segment of licensed radio stations in the country, both in raw numbers and percentage. Read More

FCC to WIN: You’re Not News, Get Over It

Sad but true: last Friday, the FCC finally responded to my appeal of its denial of my Freedom of Information Act request involving a case in which the agency declared Workers Independent News to not be news.

The dismissal was fairly perfunctory. What I was primarily asking for was the other 5,600+ pages of documentation the agency collected regarding correspondence (both internal and external) and deliberations on the WLS/WIN case (it only released 88 heavily-redacted pages). My primary objective was to discover the identity of the complainant who kicked off this sordid saga, as well as the identities of FCC staff who took the complaint and turned it into libel by official writ. Never before in the history of U.S. broadcast regulation has the FCC made a content determination on the legitimacy of a news organization. Read More

Anti-Pirate Activity Rebounds from 2015 Nadir

FCC Anti-pirate Enforcement Actions in 2016 by stateThough not by much, and certainly not along the lines of what we saw at the beginning of this decade. August was a busy month for FCC field agents, who conducted nearly three dozen enforcement actions against fewer than half as many stations. The state-leader this year so far is Florida – while New York still leads the all-time pack enforcement action-wise – and the FCC’s flexed its muscle in only seven states, compared to 10 in 2015.

Some of the cases are fairly curious, such as a $15,000 Notice of Apparent Liability issued against a Florida man who first started broadcasting without a license way back in 2013. One visit that year, followed by four visits last year (and a change in frequency), finally compelled the FCC to bring the threat of a fiscal penalty to bear.

Then there’s the case of an Alabama man who first hit the FCC’s radar in 2015; after being warned he voluntarily surrendered his transmitter via mail, only to get a new one and move to a new channel. When contacted again by the federales, he expressed the wish that he could be legal but no application windows for LPFMs are in the works, so his “hands were tied.” Not a good enough excuse to avoid a $15,000 NAL…but then again, it remains to be seen whether the FCC will formalize these as actual forfeitures, much less be able to collect on them. Read More