DOJ Could Check Radio Expansion if Subcaps Eliminated, Radio Executives Say
DOJ antitrust thresholds would act as a check on radio groups expanding if the FCC eliminated the AM/FM subcap rules, said Beasley Media CEO Caroline Beasley and Urban One CEO Alfred Liggins on a panel at the National Association of…
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Black Owned Broadcasters Broadcast Management Conference Thursday. DOJ limits on broadcasters expanding too much in any market would stop “wholesale” consolidation of radio owners maneuvering to acquire more FM stations after subcap elimination, Liggins said. That makes elimination of the subcaps “not as scary” as it might appear to AM broadcasters, he said. Beasley and Liggins support elimination or relaxation of the subcaps, though Liggins -- who is black -- conceded that the loosening of the rule would “not be great for minority ownership.” Consolidation would be a boost to the radio industry, Liggins said. NABOB President Jim Winston said that eliminating subcaps would soon lead to the demise of the AM radio industry, with large companies likely jettisoning such stations, manufacturers ceasing to make the equipment, and AM engineers unable to find work. Proponents of AM should seek to elevate the band’s sound rather than keep rules in place that limit companies’ growth, Beasley said. Broadcasting needs the ability to consolidate, said Tegna CEO Dave Lougee. Broadcasters face more competition than they once did and must concentrate on content and specifically live and local content, Lougee said. There’s “not a great market for non-day and date specific content,” Lougee said. “What’s on the air needs to be live,” Lougee said. “That doesn’t mean it needs to be news.” Restructuring of debt-burdened iHeartMedia and Cumulus is unlikely to lead to many spun-off stations, Liggins said. Management of iHeart wants to keep “scale” and instead of offloading stations, would likely seek to grow if ownership rules are relaxed, Liggins said. Cumulus could seek some transactions, but they are likely to be station swaps that allow it to consolidate its reach to certain markets, Liggins said.