Newsmax backed some TV station owners' request that the FCC increase the national cap to 50 percent from 39 percent while nixing the "outdated" UHF discount, though the media outlet "maintains its position that Congress clearly intended to prohibit a single broadcast television licensee from reaching more than 39 percent of the national audience." If the cap is lifted, the company wants ownership above 50 percent grandfathered only if it existed before an April 21, 2017, order restoring the UHF discount and station groups not to be allowed "to evade the National Ownership Cap through contractual services agreements with a television station to which the ownership group is not a licensee." A "reasonable" cap "is essential to ensuring localism," Newsmax said Tuesday in docket 17-318. "If station groups find localism too constraining on their business plans, they can simply relinquish their spectrum rights and offer their content on any number of new and unregulated platforms or they can become national cable channels and seek carriage without the benefit of retransmission consent rights." Newsmax continues (see 1805180074) to have concerns about Sinclair buying Tribune, though the news outlet's media ownership plan isn't targeting the acquirer, said John Simpson of Capitol Resources, a consultant to Newsmax and the person who made the FCC filing. But the deal may be the only pending transaction that would be affected by the cap, he told us Wednesday. "We should set a cap, everyone should abide by that cap, and we shouldn’t let certain folks, because of when their merger was announced … have an advantage over everyone else" because the deal "was announced when the national ownership cap was in limbo," said Simpson. "If it was anybody else, I think Newsmax would have the same position." Hearst Television and others operating 306 TV stations total sought the 50 percent cap, no UHF discount and grandfathering (see 1805170033). Hearst and Sinclair declined to comment Wednesday. Separately posted to docket 17-179 Wednesday, Sinclair responded to a May 21 letter from Media Bureau Chief Michelle Carey (see 1805220063). "The responses and supporting documents submitted this afternoon contain Highly Confidential Information and were submitted under seal pursuant to the Protective Order," said a cover letter of the public filing, which contained many redactions.
In what some called an unusual move, FCC Commissioner Mike O'Rielly used the agency's blog Friday to defend each of the commission's media regulations under Chairman Ajit Pai against criticism that such actions are benefiting Sinclair. Recounting a trip last week to the Pearl TV-led ATSC 3.0 model-market project in Phoenix (see 1805090082), O'Rielly fleshed out his view that the Pai-led commission isn't trying to help only Sinclair, but broadcasters overall when circumstances dictate.
Sprint and T-Mobile agreed to combine in a deal that would see the resulting wireless carrier take the T-Mobile name and be under some of that company's leadership. Foes of consolidation are likely to oppose the deal at the FCC and perhaps at DOJ, too, they told us Sunday immediately after the transaction was disclosed. The companies said in a statement that joining would help them roll out 5G: "Neither company standing alone can create a nationwide 5G network with the breadth and depth required to fuel the next wave of mobile Internet innovation in the U.S. and answer competitive challenges from abroad."
Broadcasters and allies asked the FCC to leave as-is rules for the ATSC 3.0 switch, denying pay-TV requests to change requirements in what stations contend is a bid to alter retransmission consent and intellectual property precedent. American Television Alliance and NCTA petitions for reconsideration are seen unlikely to lead to changes to rules OK'd 3-2 allowing what stations call next-generation TV (see 1803060053). Meredith Corp. and Pearl TV were the only replies to the recon petitions in docket 16-142 Friday afternoon, with a filing later coming from NAB plus one from public broadcast groups. Also posted Friday, WTA reported telling Media Bureau officials it supports the ATVA and NCTA requests and the commission should at least "continue to monitor the market to make sure the transition is voluntary for distributors." NAB called the petitions for recons "airings of grievances," with it and Pearl saying no new concerns were raised. Broadcasters said the agency responded to opposition to a five-year sunset of simulcasting, concerns about allowing low-power TV flash cuts and to other criticism. NCTA asks the regulator to require reasonable and nondiscriminatory licensing of patents associated, NAB noted. The FCC didn't require such RAND licensing for 1.0 and the latest order noted ATSC requires such practices and the agency will "'monitor how the marketplace handles patent royalties for essential patents,'" the broadcaster association said. The 3.0 order "shows how a light regulatory touch can support innovation," said Pearl, with members including Cox Media Group, E.W. Scripps, Graham Media, Hearst Television, Meredith, Nexstar, Raycom and Tegna. Petitioners try to "lure the Government into increased regulation," and "re-hash arguments," the consortium said. On LPTV, it said of the rules, "rather than limiting them from participating in ATSC 3.0 altogether, it instead makes them excellent candidates for early transition as so-called 'lighthouse stations.'" Meredith said the switchover including for LPTV "is one of a handful of economic terms that will be decided in an arms’ length" retrans negotiations. With petitioner replies to opposition due April 23, NCTA declined additional comment, and ATVA declined to comment.
The latest FCC media deregulation got a 5-0 vote, and Friday was taken off the agenda (see 1803270052) for Tuesday's commissioners' meeting. Members without issuing their own written public comment changed rules to require only DTV stations that sold fee-based or provided supplementary services to file Form 2100, Schedule G. The order may be the only media-related item for the meeting to get a vote on circulation, said agency officials. Still on the agenda is a draft NPRM to no longer make cable operators keep at local offices listings of the pay-TV channels each system delivers. That item might also get a 5-0 vote, said officials. A Media Bureau representative declined to comment. "In conjunction with our Modernization of Media Regulation Initiative, parties have urged us to amend this provision because it imposes pointless burdens on a substantial number of broadcasters," said the DTV form order. "This action advances our efforts to modernize our regulations and eliminate outdated or unnecessary rules." Commissioners at last week's NAB Show sought further media deregulation (see 1804100028).
LAS VEGAS -- DOJ appears to be taking a close look at whether music licensing consent decrees are still needed, including those requiring ASCAP and BMI to license their entire music catalogs, an NAB Show panel was told Tuesday. Speakers also offered a mixed outlook for copyright revamp legislation that passed a House panel earlier that day (see 1804110060). Speakers allied with broadcast interests noted Antitrust Division Chief Makan Delrahim said those pacts may not be necessary. And the 2nd U.S. Circuit Court of Appeals upheld a lower court overturning DOJ under then-President Barack Obama deciding the music licensing settlements should remain in force without major changes (see 1712190052).
LAS VEGAS -- Amid "disruption" by technology, owners of radio and TV stations and newspapers are eyeing overcoming challenges with smart speakers and new management strategies, executives told the NAB Show. Cox Media Group and Hubbard Radio are focusing on content for smart speakers, their executives said Monday. That people can listen to radio stations on smart speakers at home is helping the medium's return to households, those executives said. A day later, Edison Research Vice President Megan Lazovick recommended radio be more aggressive in such efforts.
LAS VEGAS -- Life for wireless mic operators may grow more complex once TV stations reshuffle frequencies, an engineer at a maker of mic systems said at the NAB Show. Spectrum for such transmissions may grow more scarce and there may be more competing uses, these and other comments Tuesday suggested.
Cable operators should take a page from the likes of Spotify by continuing to improve their user interfaces so UIs are a one-stop shop for a wide array of video content, the ex-CEO of TiVo advised smaller and mid-sized companies. Tom Rogers, now executive chairman of the WinView "second-screen interactive TV" provider, said it's "not too late" for operators to further include content companies in their UIs. Cable operators like Comcast “fought, they resisted, the streaming content companies for being part of their user interface,” he said Wednesday at an American Cable Association conference. Comcast disagreed, other panelists said operators are focusing their efforts on this, and another panel's moderator called cable "the original disrupter."
Comcast Chief Diversity Officer David Cohen has an offer for American Cable Association members, he said in Q&A following FCC Chairman Ajit Pai (see 1803210053): Any cable operator that wants to "steal" elements of the company's low-cost broadband program for the poor can do so. "We’ve offered to whitelist any and all of this intellectual property and work with anyone in the industry," he said of Internet Essentials. The program began 5-1/2 years ago and serves about 1 million families.