The FCC Media Bureau agreed to $13,500 settlement from KM Television over multiple public file violations by its KWKB Iowa City, said a consent decree released Thursday. KM agreed to a compliance plan to avoid future public file violations, and the bureau agreed to grant KWKB’s pending license application.
FCC Chairman Ajit Pai “would be acting in direct defiance of the FCC’s ownership rules” if he allowed a transaction between Sinclair and Tribune, said Free Press Senior Counsel Jessica Gonzalez in a statement Wednesday evening. A merged company would reach 69.4 percent of U.S. households, and top the current 39 percent cap by a “wide margin” even if the UHF discount were restored, Free Press said. “Sinclair executives have already told investors that they’re confident Pai will bend existing ownership limits to usher in a new era of media consolidation,” Free Press said. “The reported Sinclair-Tribune Media negotiation indicates that the industry is already moving in that direction.” Sinclair didn’t comment. A report said Sinclair might buy Tribune (see 1703010074).
The FCC should eliminate limits on radio station ownership, in its reconsideration of media ownership rules, said a letter from radio broadcasters posted Thursday in docket 14-50 and including Connoisseur Media, Alpha Media and Roberts Communications. They want the FCC to eliminate AM and FM subcaps, because “any technical and marketplace dynamics that may once have differentiated AM and FM stations no longer exist,” they said. “On reconsideration, the Commission should find that the subcaps do not protect competition in local radio markets in light of today’s marketplace dynamics and eliminate the subcaps.” The FCC can do this because it already has an extensive record on eliminating the caps, the broadcasters said. “An agency is free to modify its decision based on the evidence amassed throughout the entire rulemaking.”
Sinclair, which bought the Tennis Channel one year ago, bought Tennis Media, owner of Tennis magazine and Tennis.com, for $8 million cash plus an additional $6 million earn-out potential, it said in a news release Wednesday. Sinclair CEO Chris Ripley said the deal is part of "enhancing Tennis Channel's role as the undisputed tennis-media hub, and this combination ... along with the Tennis Channel Plus subscription service, will lead to efficiencies that maximize all four platforms." Sinclair said since buying Tennis Channel (see 1603020017), distribution has jumped from 37 million homes to close to 50 million and agreements are in place to reach 60 million homes this year.
The FCC should grant a temporary waiver of the newspaper cross-ownership rule to Fox so it can continue owning the New York Post and two TV stations in New York and New Jersey while the agency considers petitions for reconsideration of media ownership rules, said Fox Television Stations in a waiver request posted in docket 07-260 Wednesday. Under existing rules, Fox had until Wednesday to come into compliance with the NBCO rule or file a new waiver request, it said. “Grant of the requested relief will allow the newly reconstituted Commission time to consider the status of the NBCO rule as part of the pending 2014 Quadrennial Review reconsideration proceeding without disrupting the highly competitive New York media marketplace or impairing the viability of diverse sources of information in that market." The FCC is seen as likely to relax ownership rules under Chairman Ajit Pai (see 1702160064). The broadcaster also argued its combination is legal even under the existing NBCO rules.
Nexstar is "already having M&A discussions," Wells Fargo analyst Marci Ryvicker emailed investors Tuesday. "It sounds like NXST is ready to transact NOW -- despite the recent close of the[Media General] deal." Though Nexstar hasn't reveled how Q1 is going, she said she believes the quarter is "probably down." Nexstar management described Q1 as ''more peppy'' than Q4, she said. Nexstar is in discussions with virtual multichannel video programming distributors, Ryvicker said. "Discussions are ongoing with both the networks and the distributors themselves, but no agreement has been signed yet."
The FCC should allow TV stations to use repacking reimbursement funds to compensate FM broadcasters for costs incurred during the repacking process, NAB Associate General Counsel Patrick McFadden said in a blog post Monday. Since radio stations often use the same towers as TV stations, repacking work could disrupt radio stations' operations or require them to set up temporary facilities, McFadden said. NAB has asked the FCC to include compensation for such a situation in the catalog of reimbursable expenses, but the agency said such reimbursement wasn't part of the legislation authorizing the auction, McFadden said. A repacking plan that doesn't consider the collateral effects on FM stations "risks depriving" listeners of their local radio stations, McFadden said. "A balanced, reasonable repacking plan will treat all stakeholders fairly, including all affected broadcast stations, whether they are repacked or not." The FCC didn't comment.
The FCC released the final ATSC 3.0 NPRM, which was approved Thursday by a unanimous vote. The item seeks comment on a proposed voluntary transition plan for broadcasters to move to transmitting in the new standard (see 1702230060).
Bayou City Broadcasting closed on its $40 million buy of Fox affiliate KADN-TV Lafayette, Louisiana, and low-power TV NBC affiliate KLAF-LD Lafayette from Nexstar Broadcasting, according to FCC online records and a news release from the National Association of Black-Owned Broadcasters. The stations are divestitures connected to Nexstar buying Media General (see 1605270060). “Even though constituting 14% of the total population, African Americans own only 12 full power commercial television stations out of the 1300 full power commercial television stations in the United States,” said NABOB: The broadcaster “has no joint sales agreements, shared service agreements, financing agreements, or any other ‘sidecar’ agreements with any group station owners.” The group called the company "a standalone operation.”
The FCC Media Bureau granted a request from Australian-owned Frontier Media to be allowed to increase its ownership of 29 Alaska and Texas radio stations to 100 percent, said an order and ruling in Friday's Daily Digest. Australians Richard and Sharon Burns owned 20 percent of the stations, but the deal approved Thursday allows them to own 100 percent. Frontier’s request was unopposed, and the bureau found it to be in the public interest. Granting the petition would “increase the likelihood of continued service to small communities by authorizing investment by individuals who are ready, willing, and able to operate the stations,” and “facilitate foreign investment in the U.S. broadcast radio market” among other positives, the order said. It requires Frontier obtain prior commission approval for any change in its ownership “before any individual foreign investor" or “group that is not specifically approved by this Declaratory Ruling acquires a direct or indirect voting or equity interest in Frontier.”