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

Industry Mulls Second FM-HD Power Increase

When HD Radio was under development and policy-discussions on the technology were in their infancy, proponents of the system bragged about all of the game-changing features it would have. This included audio quality that sounded better than CD and the ability to broadcast a plethora of digital data beyond audio itself.

They also told us that digital radio signals would be more robust and easier to receive than their analog counterparts. This was a critical assertion, because HD Radio works by shoehorning digital signals onto the existing AM and FM bands, right next to analog ones, and thus to avoid interference the HD signal can only be broadcast at just a fraction of a station’s analog power output. But proponents said that was okay: HD Radio only needed a fraction of the power to kick ass and blow minds. Read More