All five FCC Commissioners spent more than three hours on Capitol Hill last week being questioned by the House Energy and Commerce Committee during an “oversight hearing,” which is a fancy way of saying “let members of Congress score political points by grandstanding on the FCC-related issues they care about the most.” While the hearing itself was mostly dominated by subjects such as the agency’s upcoming spectrum auctions and proposals to detach set-top TV boxes from the grip of cable service providers, two Congressfolk raised the issue of pirate radio with the Commissioners.
First was Rep. Frank Pallone (D-NJ), who’s been a very vocal supporter of increased enforcement efforts against pirate stations in the New York City metropolitan area. He announced that he plans to draft legislation to asssist in these efforts and lobbed Commissioner Michael O’Rielly a softball question on the state of pirate radio enforcement: in effect, “what should this bill include?”
O’Rielly said that “getting at the money part” of pirate radio was paramount. Many entities advertise on pirate stations; he mentioned concert and club promoters and political campaigns (?) in particular. However, O’Rielly also noted that he did not want such legislation to penalize those who may “inadvertently” assist unlicensed broadcast operations, such as landlords who may not know they’re renting space to a pirate station. Continue reading “Congress to Target Pirate Advertisers (and Others?)”
Month: March 2016
"The Documents Are Not Available"
On Thursday, February 25th — one day before the Radio Preservation Task Force‘s inaugural conference — I traveled to Washington, D.C. to meet up with friend and colleague, Dr. Christopher Terry, who was also attending the conference. Like me, Dr. Terry is a media law and policy scholar who hails from Wisconsin. And also like me, Dr. Terry has been watching with interest the FCC’s foray into definining journalism on the public airwaves.
In his classes, Dr. Terry uses the Commission’s $44,000 fine against WLS-AM for airing newscasts produced by Workers Independent News as a teaching point to explore the FCC’s regulation of sponsored content. In prior posts, I’ve explained how Workers Independent News purchases airtime on selected commercial radio stations to air its newscasts and features. The FCC case stemmed from WLS-AM’s failure to run the required disclaimer that WIN had paid for its own airtime in a small fraction of broadcasts.
But when the FCC decided to sock WLS with such a stiff fine, it made WIN’s legitimacy as a news organization key to its rationale. Unprecedented in the history of U.S. broadcast regulation, the FCC effectively declared Workers Independent News to not be news, thereby justifying such a large forefiture.
Shortly after the FCC’s 2014 decision, I filed a Freedom of Information Act request with the agency for all documents related to its decisionmaking process in the WLS case. Last November, FCC attorneys reported back that they had identified several thousand pages of material…but released less than 90 redacted pages. Among them was the original complaint that kicked off the FCC’s inquiry, which defamed Workers Independent News as an activist organization masquerading as a news outlet. It was on this allegation that the FCC seemed to rest its case. Continue reading “"The Documents Are Not Available"”
iHeartMedia's Debt Dance Intensifies
The nation’s #1 radio broadcast conglomerate stands another step closer to defaulting on nearly $21 billion of IOUs racked up during its consolidation and conglomeration spree of the last twenty years. For those just tuning in, iHeartMedia owes nearly $1.4 billion in debt payments between now and 2018, with nearly $200 million of that due this year.
The company announced a curious plan in late 2015 to ask some of its debt-holders to swap existing debt for stock, the idea being to try and retire the pressing debt first and keep the fiscal ship afloat. In practice, iHeart began shifting some of its assets into a subsidiary named Broader Media, which is effectively a subsidiary holding company within iHeart itself. Those who agreed to swap their debt in iHeart would get paid back in Broader Media equity. Continue reading “iHeartMedia's Debt Dance Intensifies”
Paper Tiger Warns: Don't Do Business With Pirates
With unlicensed broadcast operations taking place with impunity in several of the nation’s largest media markets, and facing near-emasculation in the field, the Federal Communications Commission is taking a new tack to try and ameliorate the “pirate problem.”
A letter co-signed by all five Commissioners was mailed out last week to several local government and industry trade groups, including the U.S. Conference of Mayors, National Association of Chiefs of Police, Association of National Advertisers, and National Association of Realtors, among several others.
This letter seeks to inform the recipients about who pirate stations are and asks that they avoid doing business with them. The letter claims that unlicensed broadcasters “can cause harmful interference to licensed radio broadcasters serving their communities, thereby starving stations of their ability to reach their listening audiences and obtain necessary advertising revenues.” It also claims that pirate stations have the potential to interfere with public-safety radio systems.
The tone is slightly admonishing: the recipients are informed that they “may be unknowingly or unintentionally providing aid to pirate stations. . .including buying advertising on such stations to housing the physical stations themselves.” The Commissioners hint that this may expose them to “potential FCC enforcement or other legal actions,” and cautions that being in business with a pirate station may also “sully the reputations of those businesses with the licensed broadcast community and other professional organizations” – sort of a “Scarlet P” approach. Continue reading “Paper Tiger Warns: Don't Do Business With Pirates”