Paper Tiger Roars in 2017 – To What End?

There are still a few pirate radio enforcement-cases from 2017 that the FCC has yet to release, but by and large the numbers from last year are in and they most definitely show an uptick in the number of enforcement actions against unlicensed broadcasters. As of today, there were 383 enforcement-actions across 18 states, compared to 207 actions in 2016 covering just nine states. For the second year running, Florida tops the list of states with the most anti-pirate enforcement, followed by Massachusetts and New York.

FCC Anti-Pirate Enforcement Actions Enforcement Actions by Year, 1997-20182017 ranks as the fifth-busiest year for enforcement activity in the 20-year history of the Enforcement Action Database, eclipsed only by a tear the FCC’s Enforcement Bureau went on during the end of President Bush II’s second term and Obama’s first term, when a proposed expansion of LPFM was being debated. Of the activity logged last year, the vast majority were station-visits (201, or 52%) or Notices of Unlicensed Operation (aka warning letters, 168, or 44%). The remaining 4% of enforcement actions included Notices of Apparent Liability (aka pre-fines, of which there were four) and Forfeiture Orders (nine).

In 2016, the FCC’s Enforcement Bureau issued nine NALs and five Forfeiture Orders, so on balance there’s no real movement or improvement in the agency’s escalation-protocol beyond initial contact(s). Read More

Cumulus Goes Chapter 11; How Long for iHeart?

Bloated with more than $2 billion dollars in debt racked up in the wake of the late 90s-early 00s radio station consolidation orgy, Cumulus Media has finally taken the plunge into Chapter 11 bankruptcy reorganization. The path from there to here began when Cumulus hired Mary Berner as the CEO in 2015 – primarily for her prowess in shepherding Reader’s Digest through the Chapter 11 process back in 2009, when that company carried a nearly identical amount of debt.

Things got real back in September, when the Wall Street Journal reported that the company had begun negotiations with creditors who hold “big chunks” of the company’s debt. This was prompted in part by the company’s pending delisting from the NASDAQ stock exchange after CMLS shares trended below $1 and stayed there; the company’s net equity had previously fallen below the NASDAQ minimum, which is also a delistable event.

Then Cumulus intentionally skipped a $23 million interest-payment on its debt that was due November 1. It told the Securities and Exchange Commission it did this “in support of the Company’s efforts to develop and implement a restructuring that will allow the Company to continue its operational and financial momentum,” and noted that the missed payment would trigger a default after 30 days.

In a memo to staff, CEO Berner was frank about the fact that “we can’t fully turn the company around until we reduce our excessive debt-load,” and that skipping the payment would incentivize creditors to compromise to avoid default. Read More

Historical Context for the Imminent Demise of Network Neutrality

On December 14, the Federal Communications Commission will vote 3-2 along party lines to obliterate the regulations that preserve the principle of network neutrality in the United States. Many have written more eloquently than I can on the policy implications; some excellent examples reside here, here, and here.

But the spectacularly misnamed “Restoring Internet Freedom” Order represents much more than a big wet kiss to internet service providers, giving them carte blanche to engage in data-discrimination dependent on content-creators’ – and your – ability to pay to send and receive. It functionally removes the FCC from having any role to play in making sure that ISPs don’t balkanize the online world to extract maximum revenue, pushing that responsibility into the lap of the Federal Trade Commission – though one Commissioner has already gone on record saying the FTC doesn’t have the legal authority or technical expertise to handle it.

As added bonuses, the Order also preempts any and all state laws that might seek to preserve the principle of network neutrality going forward, and allows ISPs to play fast and loose with the disclosures they must make regarding what you actually get when you pay for broadband service. Read More

Workers Independent News: 2001-2017

It was a crisp but comfortable fall day in 2000 when I was invited to the University of Wisconsin-Madison’s Memorial Union Terrace for a beer-summit about an interesting project-proposal. I was preparing to leave my career in commercial radio journalism out of disgust with the industry’s post-Telecom Act trajectory and had applied to the UW to start a master’s program in hopes of learning more about what had gone wrong with my chosen vocation, so the timing of this meeting was fortuitous.

It was the brainchild of then-UW School for Workers professor Frank Emspak: drawing on decades of experience in the labor movement and as an activist more broadly, Frank was worried that the voices of working people were being squeezed out of our media conversations, especially as business news increasingly focused on corporate executives and stock-prices, and our media outlets themselves were increasingly subject to the whims of finance capital. What if there were a news outlet run by workers, for workers, that put what passed for “business news” in the proper economic context?

A couple pitchers later, the four of us around that Terrace table had sketched out the framework for what would become Workers Independent News: the first national, labor-centric radio news program to be launched in the United States in several decades. We produced daily newscasts, feature stories, and other content from a DIY newsroom/studio in Madison and utilized our website for distribution — in effect launching a podcast long before podcasts became cool. Dry-runs of the production process began in late 2000, and WIN was officially launched in early 2001. Read More

FCC Decimation of Public-Interest Media Regulation Reaches Fever Pitch

Last month the Federal Communications Commission voted to remove the requirement that radio and television broadcasters have an actual physical presence in the communities to which they are licensed, opening the door to more station consolidation, automation, and syndication.

This month, the agency went on quite a tear: it repealed regulations that prohibit a single company from owning the major radio/TV stations and newspaper in a single market. This comes on the heels of the reinstatement of a regulation that encourages the merger of Sinclair and Tribune Broadcasting to proceed.

Furthermore, the Commission sowed the seeds for the eventual collapse of a program designed to subsidize broadband access for the poorest among us. And it endorsed the adoption of a new digital TV broadcast standard which will allow stations to customize programming to individual viewers, a la your Facebook feed. It will also require you to buy a new TV or conversion-box, similar to what was required during television’s initial analog/digital transition. (Incidentally, one of the strongest proponents of and investors in this new technology is Sinclair.)

Next month, as an extra-special Christmas present to the public interest, the Commission will vote to repeal the regulations that preserve network neutrality, and has opened the door to doing away with rules that require the cable industry to report yearly on industry competition and pricing trends. Read More