Price Colman

Now that its Allbritton purchase is done, Sinclair CEO David Smith says he’s eager to start taking on Fox News Channel and MSNBC with NewsChannel 8.

[Commentary] Gannett's move to split into two companies -- one encompassing broadcasting and digital, the other publishing -- is the latest move in a trend reflecting current economic and regulatory realities.

Newspapers have taken it on the chin with the advent of the Internet and the shift of classified advertising, once a newspaper mainstay, to the digital platform.

The split will allow Gannett to avoid Federal Communications Commission newspaper-broadcast cross-ownership restrictions, enabling it to take advantage of acquisition opportunities in each sector.

"There will be fewer regulatory obstacles in two consolidating industries," Gannett CEO Gracia Martore noted, adding that, "Both companies will continue to collaborate on cross-platform sales."

Local TV broadcasters have shifted into high gear with digital advertising efforts, driving an estimated all-time high of nearly $3 billion in new ad revenue for stations in 2014, according to new research commissioned by the Television Bureau of Advertising.

Media General and LIN Media will sell or swap stations in five markets to clear the way for their $1.6 million merger. The five markets are Birmingham and Mobile (AL); Providence (RI); Savannah (GA); and Green Bay (WI).

The station divestitures are required under rules the Federal Communications Commission recently toughened prohibiting a station group from owning more than one station in a market.

David Smith, CEO-president of Sinclair Broadcast Group, sees congressional and/or court action required to rebalance the regulatory environment so that broadcasters can effectively compete with broadband, telephone and cable companies.

In the meantime, Smith said, uncertainty surrounding the regulatory environment is making it tough on broadcasters. Noting that the National Association of Broadcasters recently sent a cease-and-desist order to the Federal Communications Commission over its plan to scrutinize shared service agreements on a case-by-case basis, Smith wondered what's next.

"What, if anything, is the NAB going to do in the legal context?" he asked. "You've got Commissioner Pai standing up making some pretty bold statements -- [in effect] will someone please sue the FCC because they're violating the law. It may be reasonable to assume it will end up in some venue with a judge making the determination. If it's found to be illegal, then what do we do?”

Sinclair is following the FCC’s new marching orders on JSAs, selling three stations so that it can close on its $985 million acquisition of Allbritton. Smith said he views adoption of a new broadcast standard -- ATSC 3.0 -- as an essential tool to maintain competitiveness.

"We need to be everywhere 24 hours a day, 365 on every device," Smith declared, acknowledging details remain to be worked out. "Anything less than that is not good for the industry."