Stations Unclear About Underwriting, Ads on HD Multicast Channels
There’s confusion among stations about whether the FCC experimental authorization under which they operate HD Radio multicast channels allows them to air underwriting messages and ads, according to public broadcasting and other officials we interviewed. The Commission’s experimental authorization doesn’t bar ads on the multicast channels, said one commercial broadcasting source. The HD Radio Alliance has said it will offer commercial-free programs at least for now.
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“The unofficial guidance we got from the FCC is that we are not sure” about stations airing underwriting messages on their secondary or multicast channels, a public radio official said. He knows of no public station airing such messages now, the official said, adding that public broadcasters expect the FCC to allow stations to do underwriting on the multicast channels. “Ultimately they [FCC] are going to decide in our favor that we have permission” to do ads on the multicast channels, the commercial broadcasting source said. “There is no issue of whether broadcasters can air commercials on the HD radio multicast,” the source said, adding he didn’t see why there should be a problem with commercial stations replicating their advertising model on the multicast channels. An FCC official couldn’t confirm or deny whether stations had approached the Commission on the subject and whether the Commission had provided any guidance on the issue.
Underwriting and ads on the multicast channel is an issue the FCC staff “hasn’t really settled on yet,” the public broadcasting official said. Conditions under experimental authorization for multicast broadcasting leave open the question of “appropriateness” of underwriting for public radio and ads for commercial radio on the multicast channels, he added: “It is an issue for the Commission to at least look at in some way.”
Meanwhile, public radio officials, commercial broadcasters and HD radio manufacturers said they expect an FCC multicasting order to pass muster with the addition of a Republican commissioner soon. The draft order put in circulation by Chmn. Martin in Oct. was stalled because one Democratic commissioner stood firm on commercial broadcasters’ public interest obligations, with his fellow Democrat’s backing, according industry sources (CD Nov 3 p3). “We continue to hear from the working level staff in the Media Bureau that they are fine tuning the draft report and order,” said one public radio official: “They certainly haven’t forgotten about it.” However, there’s no indication of any consensus or agreement among the commissioners, he added: “It’s just a matter of getting to a point where the common sense notions of the chairman at least on multicasting can be decided by themselves without being encumbered with some other things.”
Commercial broadcasters are waiting for a 5th commissioner to get the multicasting order approved just like many other pending issues at the FCC, said a source. With a 3-2 Republican majority, “we are expecting that [multicasting order] to go through fairly quickly,” said a HD radio manufacturing executive. According to conversations he has had with FCC officials and other industry partners, he said, it’s very clear that everyone at the Commission is for multicasting: “The only thing that has looked to hold it up was the idea that it may be used as a bargaining chip as one political party angles for something unrelated.”
Chmn. Martin had an item on multicasting on which he couldn’t come to consensus with the other commissioners, the FCC official acknowledged: “At this point whether there is an item or not has not been decided,” the official said. However, issues raised in the 2004 NPRM will be “addressed in some form or fashion in an [upcoming] item,” the official added.