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2017 STAR AWARDS

SAVE THE DATE

Image result for Parrot on beach 

The 2017 STAR Awards will be held on

August 19th at the Columbia Conference

Center (same venue as 2016!)

This year SCBA will transport you to

“Margaritaville” so find your flip flops,

flowered shirts, dresses and straw hats

and join us for an evening of fun

and celebration!  

   

      

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CommLawCenter

New Post: You Can't Have One Without the Other: FCC Restores

UHF Discount to National Cap

Posted April 20, 2017

By Scott R. Flick

While the great American songwriter Sammy Cahn felt it was Love and Marriage that were inseparable (as they "go together like a horse and carriage"), the FCC today found the UHF Discount just as inseparable from its 39% National TV Ownership Cap.  By a 2-1 party-line vote, the FCC this morning restored the UHF Discount, reversing a decision of the Wheeler FCC released just seven months ago.  The FCC indicated that it would consider the future of the UHF Discount in a comprehensive review of its broadcast ownership rules commencing later this year.

Most rules aimed at preserving competition focus on a competitor's market share as the trigger for restricting further growth.  Oddly, the National TV Ownership Cap instead focuses exclusively on a television broadcaster's mere geographic presence as being the danger.  Using that logic, you would expect Sears to be able to easily crush Amazon since Sears has far more locations than Amazon.  However, if you were ever to make that argument in public, the laughter would be long and loud.

Those unfamiliar with the Cap might assume a 39% limit means an entity is restricted to having no more than a 39% nationwide share of either advertising revenue or viewers (depending on which "market" the government thinks is the relevant one).  That is certainly the way a regulatory cap works in most industries.  In fact, before a court tossed it out for other reasons, the FCC's own national cable cap rule prohibited ownership of cable systems having more than 30% of all U.S. subscribers.

In contrast, the National TV Ownership Cap just totals the households in each TV market served by a broadcaster (regardless of whether those viewers actually watch or can even receive the station at issue) and yells "Stop!" when the total market population reaches 39% of national TV households.  Even if a broadcaster's stations have a less than a 1% audience/ad revenue share in each of those markets, it is still treated as a competitive behemoth whose growth must be halted.

In the real world, a station's over-the-air signal often doesn't cover all the households in its market, meaning that the Cap is not just measuring the wrong thing, but is doing so inaccurately by attributing all TV households in a market to that station.  Unlike the Cap itself, the UHF Discount acknowledges the illogic of this, and counts only half the TV households in a UHF market toward the Cap in an effort to approximate real world coverage.  Even if the digital transition had actually eliminated the disparity between VHF and UHF coverage (look here for a contrary argument), it doesn't change the fact that the approach upon which the UHF Discount is based—trying to assess actual signal reach—is far more logical than the treatment of VHF stations under the Cap, which arbitrarily counts all TV households in a geographic market.

So if you are willing to overlook the flawed premise of the Cap itself—that geographic presence rather than actual market share is what is relevant—then the method of counting households under the UHF Discount is actually far more defensible than the arbitrary treatment applied to VHF stations by the Cap.  If the treatment of UHF and VHF stations needs to be conformed, the answer would not be to eliminate the UHF Discount, but to instead conform the treatment of VHF stations and make a similar assessment of their actual population coverage.

There are certainly those who would vigorously challenge that conclusion, and they would likely present two arguments to support their case.  The first is that the Cap is intended not merely to preserve competition, but also to preserve Americans' access to diverse content.  The second is that cable and satellite carriage now relays a station's signal to all corners of its market, making it reasonable to attribute all households in that market to the station.  However, these two arguments cancel each other out.

Even with cord-cutting, well over 80% of TV households are cable/satellite subscribers.  That sounds like a point in favor of the "you should count all households" approach, right?  But in those pay-TV households, retransmitted broadcast channels are surrounded by hundreds of other program streams.  As a result, these households have available a level of program diversity that was unimaginable when the National Cap rule was first created in 1985.  That in turn dilutes the potential influence of any one program source, eliminating the need for broadcast ownership restrictions with regard to these households.

It is therefore only in non-cable/satellite households that the Cap could theoretically serve its claimed purpose.  However, if the concern underlying the Cap is a broadcaster having influence over viewers in households lacking a multitude of competing program sources, less than 20% of all U.S. TV households would even be at risk of that (and that assumes we are talking about a broadcaster with a TV station in every market in the country).  While the Cap currently limits a broadcaster to having this influence in markets containing 39% of TV households, it has become physically impossible have such influence in even 20% of TV households.  And of course, all of this overlooks Internet video sources, which are likely heavily utilized in non-cable/satellite households since many are cord-cutters now relying on Internet video services.

Whether or not the UHF Discount is in place won't alter any of this.  It's not the UHF Discount that has outlived it usefulness, but the Cap itself.  The UHF Discount merely reduces the damage caused by a now outdated Cap.

Still, there are those who disagree with the FCC's stated goal of reviewing the Cap and the UHF Discount together, arguing that if there is no longer a UHF/VHF disparity, the FCC should ignore the forest and focus on just that one tree.  However, Chairman Pai correctly noted that, in eliminating the UHF Discount, the "Commission vote[d] to substantially tighten the national audience reach cap," and the FCC's action would "substantially change the impact of the national cap."  The notion that one can be eliminated without affecting the other is indeed a fiction.  By eliminating the UHF Discount without assessing whether the Cap as modified by that action was in the public interest, the FCC failed to meet its most fundamental statutory mandate.  Today, the FCC rectified that error.

So the FCC will now move on to a more unified and comprehensive review of its broadcast ownership rules.  In that review, it will have to recognize that the UHF Discount is just as inseparable from the current Cap as Sammy Cahn's lyrical horse and carriage.  It might also conclude that, like the horse and carriage, the National Cap has become a relic of another time.

More Recent Posts from Comm Law Center

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CommLawCenter

New Post: FCC Announces Auction Results and Sets TV Repack Deadlines

Posted April 13, 2017

By Scott R. Flick, Lauren Lynch Flick and Joseph A. Cohen

To use a metaphor those headed to Vegas for the NAB Show will appreciate, two of the three wheels on the Spectrum Repack slot machine had stopped spinning, and all eyes have since been anxiously watching that third and final wheel.  The first stopped spinning on January 13, 2017 when the Reverse Auction concluded.  The second stopped on March 30, 2017 when the Assignment Phase of the Forward Auction came to an end.  The third wheel stopped this afternoon with the release of the FCC's long-awaited Incentive Auction Closing and Channel Reassignment Public Notice.  That Public Notice formally marks the end of the Incentive Auction, and publicly reveals which stations got cherries and which stations got lemons in the auction and repack.

According to the FCC, there were 175 TV stations that sold spectrum in the auction for just over $10 Billion in total.  Of these 175, 30 are moving to a VHF channel and 133 have indicated that they will be channel sharing with a station that did not sell spectrum in the auction.  That suggests only twelve stations nationwide sold their spectrum with the intent to go dark permanently.

For those stations that did not sell spectrum in the auction, the FCC indicates that 957 of them are being involuntarily moved to new channels.  As a result, the Spectrum Repack looks like it will be every bit as complex and all-encompassing as many had feared.

In that regard, the Public Notice also locks in the deadlines broadcasters must meet for the 39-month Spectrum Repack, officially launching the rush to secure equipment and services needed by each repacked TV station to build out new transmitting facilities. The FCC had addressed in general terms many of the repack deadlines in various notices and webinars, but nearly all were geared to the release date of the Public Notice.  As a result, while we generally knew how long the FCC was allotting for various steps of the repack, they all remained moving targets until today's release of the Public Notice.

With the Public Notice now in hand, we have assembled below the key deadlines.

Continue reading →

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Labels Hit Capitol Hill; Ask Congress to Support Local Radio
Last week, the Fair Play Fair Pay Act was reintroduced by Rep. Jerrold Nadler (NY-08) to impose a performance tax on local radio stations. And this week, artists and record label representatives will be on Capitol Hill asking members of Congress to weigh in on royalties. Let's remind Congress, and our listeners, that radio is the perfect partner for artists. Imposing a tax on local radio would upend this successful relationship that's been working well for nearly a century.
Read More >>

Click here to read entire newsletter.

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Pai’s FCC Sends Paper

Correspondence File Rules Packing

                                                                                          

Commercial broadcasters soon will not need to keep paper copies of viewer and listener correspondence about station operations in their public inspection files. The FCC voted 3-0 on Tuesday to eliminate the requirements at its first public meeting under new Chairman Ajit Pai. The Order also resolves a security issue for stations because they will no longer be required to keep their main studio open for anyone who walks in off the street who asks to see the public file, which will now be entirely available online. Read more…

 

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SCBA's Job Bank
The Internet is the most efficient and effective recruiting tool today!  Stations, post your job openings on the Job Bank and view resumes for all job categories.  Interested in a broadcast career?  Learn about the types of broadcast jobs available and post your resume.  SCBA Job Bank postings are for Equal Opportunity Employers.  Post Jobs

PEP Update

SCBA member stations are in partnership with governmental agencies to deliver public education messages throughout the state.  Many SCBA programs and services are made possible by proceeds from the PEP program.  Stations air PEP spots in the best times available and as often as possible.  Read More

Tips for Non-Profit Organizations

For local radio and television stations across South Carolina, community service is more than a passing concern.  It is a way of doing business.  Every day in South Carolina, from the biggest cities to the smallest towns and everywhere in between, broadcasters are going to bat for community charities, educating residents about important local issues, and delivering lifesaving information and relief in times of crisis or disaster.  Non-profit groups across the state know they can turn to their local radio and television stations for a helping hand.  The tradition of community service by South Carolina broadcasters is unmatched by any other industry and one that we pledge to uphold in the years ahead.  If you want to gain exposure for your charitable organization, school or other civic group, SCBA provides these guidelines for working with the media. Read More

 



 

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