Standard General’s proposed concessions aren’t enough to prevent higher retransmission consent rates or collusion between Standard and Cox Media Group owner Apollo Global Management, said comments filed in docket 22-162 in response to the FCC’s request for feedback.
Broadcasters largely support a proposal to allow higher digital FM power levels, though some are cautious about possible interference, according to comments posted last week in docket 22-405 on a petition for rulemaking from NAB and Xperi (see 2210270061). The petition asked the agency to amend its rules on in-band/on-channel (IBOC) digital audio broadcasting to adopt an updated formula to determine digital FM power levels for stations. “Comprehensive interference protection for existing, incumbent analog stations must be adopted as part of any potential rule changes to digital FM power levels,” said broadcaster Howard Toole. Commenters also supported a 2019 request from NAB, Xperi and NPR to permanently authorize FM radio stations to utilize IBOC with asymmetric sideband power levels.
Nexstar and Charter settled their legal battle over a retransmission consent agreement for Mission Broadcasting’s WPIX New York, according to a filing Monday in the superior court of Delaware. Nexstar reached a settlement in a related court proceeding with Comcast in the U.S. District Court for Southern New York last month (see 2212200057). Both breach of contract cases began after Nexstar sought to apply clauses to WPIX’s retransmission consent contracts after Mission acquired WPIX. Nexstar operates all of Mission's stations through sharing arrangements. In Monday’s filing, Nexstar and Charter asked the court to stay the proceeding in anticipation of the companies requesting a voluntary dismissal in the wake of the settlement. Nexstar and Charter didn’t comment on the terms of the settlement.
Tech Freedom, the Campaign Legal Center (CLC) and others disagree whether a Federal Election Commission proposal to broaden the definition of internet political advertising is an assault on free speech or a needed update to political ad regulation, according to comments posted this week in docket REG-2023-01. The new definition would potentially include payments to social media influencers -- such as cable and broadcast hosts -- and other indirect online promotion.
The FCC’s proposed updates to its foreign-sponsored content rules would exceed the agency’s authority, increase burdens for broadcasters, and are unnecessary, said NAB, Gray Television, network affiliate groups, and the Multicultural Media, Telecom and Internet Council in comments this week in docket 20-299. Enacting “unnecessary, burdensome regulations” to “protect against something that from all indications has never happened does not reflect a sound approach to rulemaking,” said the affiliate groups. If such rules are enacted, the agency should carve out exceptions for advertising and religious and local programming, as well as grandfather existing agreements, the broadcasters said.
The FCC’s biennial 2022 Communications Marketplace Report’s video competition section lists the quadrennial review and ATSC 3.0 as focuses of FCC broadcast policy for the next two years and chronicles rising competition for broadcasters from online media, but it doesn’t indicate upcoming changes to the agency’s definition of the broadcast marketplace or MVPDs. “While the report is thorough in its coverage, it seems to miss some core dynamics of the local media advertising marketplace,” said BIA Advisory Services Managing Director Rick Ducey. “Local media are competing for all media spending. TV and radio stations don’t just compete with other stations, they compete with all other local ad-supported media.”
A Gray Television petition asking the courts to set aside the FCC’s $518,000 forfeiture order against the company (see 2211010077) suggests it's targeting agency policy rather than simply seeking to overturn the fine, attorneys told us. “The Commission’s Order is erroneous and improper for several reasons,” said Gray’s petition for review in the 11th U.S. Circuit Court of Appeals (docket 22-14274) last week.
Standard General continues to battle retransmission consent concerns about its proposed buy of Tegna, according to releases and FCC filings this week. Standard Thursday touted a retrans deal with Comcast as evidence of its willingness to comply with conditions on the transaction (see 2212190063), while MVPD Dish sent the FCC a completely redacted retrans letter from Cox Media Group – owned by deal participant Apollo Global Management -- in response to Cox’s denial (see 2212130061) it had sought to include Tegna stations in retrans negotiations. An FCC comment period on Standard’s proposed conditions is set to end in late January, just weeks before a Feb. 22 milestone in the Standard/Tegna merger agreement that would allow Tegna to choose to exit the deal.
With six business days left in 2022, the FCC has started its 2022 quadrennial review even as its 2018 review remains unfinished. FCC officials told us a vote on a draft QR order or NPRM isn't likely soon without five commissioners. Before Thursday's QR public notice establishing docket 22-459, multiple 10th-floor officials said there had been no mention of a QR proposal from the chairwoman’s office in months.
Action on Standard General’s proposed buy of Tegna isn’t expected soon, and recent concessions by Standard founder Soohyung Kim aren’t moving deal opponents, said industry attorneys and groups. “The reality is that the proposed investment increases the parties’ incentive and ability to collude in ways unaddressed by Standard General’s offer," said the American Television Alliance in a release Monday. Standard’s deal for Tegna was filed in February 2022, and the arrangement is now under the effects of a “ticking fee” clause in the merger agreement, which raises the price the longer the deal isn’t approved by regulators (see 2210280062). The “purchase price is increasing every day,” said Kim in a statement Friday.