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

Future Enforcement: Questions of Money and Will

The House Subcommittee on Communications and Technology had members of the FCC in for three hours of grilling a couple of weeks ago under the rubric of “continued oversight,” which is a fancy way of saying “giving members a chance to grandstand on pet issues.”

Subjects like the FCC’s plans to repurpose DTV spectrum for wireless broadband, reform communications subsidy programs, and the protection of net neutrality got the most attention, but questions of the FCC’s enforcement capabilities and how pirate radio fits into the mix did arise. Read More

Prepping for a Pirate Crackdown

Even though the FCC’s Enforcement Bureau is in the throes of a major downsizing – newly-released documents indicate the Bureau will cut 44 jobs, or more than 40% of its workforce – it’s also committed itself to do something about the proliferation of unlicensed broadcasting. That said, a before-and-after summary of personnel cuts doesn’t really show a lot of refocused muscle on the ground: for example, New York’s field office will see a net increase of one agent (from 4 to 5), while the “tiger teams” being created to backstop the field offices consist of no more than three or four.

Since pirate radio’s become a plaything of FCC Commissioner Mike O’Rielly, and the broadcast lobby is chomping at the bit for a war on pirates, I would not be surprised if the agency, working in concert with groups like the NAB and New York State Broadcasters Association, attempt to sweep at least NYC this year in some “show of force.” Whatever the rhetoric may be, paper-tiger mode remains in full effect — and there’s a lot unlicensed broadcasters can do to prepare for whatever may come, both tactically and strategically. Read More