Michael Malone

Federal Communications Commissioners Michael O’Rielly, Brendan Carr, and Geoffrey Starks, spoke at a panel at the 2019 National Association of Broadcasters Commissioner show. Commissioner Carr emphasized the importance of getting out and about to see how ownership groups operate. He said ownership rules were scripted when the morning paper and evening newscast represented the extent of local news voices. "The market you all compete in today is vastly different,” he said, singling out Pandora, Spotify, and the “Silicon Valley giants” as prominent competitors to local TV.

Gray Television has entered into definitive agreements to transfer six TV stations to new owners. Gray retained the brokerage arm of the Minority Media and Telecommunications Council (MMTC) to find owners for the stations that it has acquired in multi-station deals, but cannot technically own.

Gray will provide services to the stations, which include markets in North Dakota, Colorado, Nebraska and Louisiana.

Federal Communications Commission Chairman Tom Wheeler praised the move: “We applaud the commitment of MMTC and Gray Television to find buyers for each of the six Gray stations that would increase diversity of ownership and programming in each of these markets. Such actions demonstrate how our rules can actively promote both competition and diversity, keep stations on the air, and serve the public interest.”

If digital networks are following a similar course as cable decades ago, as many believe, they may have to come up with the type of compelling original programming that enabled HBO, USA, TBS and other blue chip cablers to stand out. Digital networks raked in around $183 million in 2013, according to BIA/Kelsey. While producing engaging shows on a digital network’s tight budget has myriad challenges, channels such as Bounce TV, Tuff TV and LATV feel it’s the right way to progress. Successful networks have a mix of programming, believes Jonathan Katz, chief operating officer at Bounce TV, and originals are a key part of that.

Sinclair Broadcast Group’s $985 million deal to acquire Allbritton has, at long last, closed, according to insiders in both companies. Sinclair and Allbritton agreed to the deal July 29, 2013, but regulatory issues held up the approval process.

Broadcasters are increasingly focused on enterprise reporting, which means local officials intent on malfeasance may have a tougher go of it.

Industry watchers offer a number of reasons for the I-team influxes: The recession is well behind us, and stations are flush with election money; amid a prolonged distaste for dysfunction in Washington, consumers demand greater accountability from their local politicians; and newspapers, long the local municipal watchdog, are increasingly ill-equipped to play that role.

The urgently scheduled Fox station owners meeting ran from early morning to around 2 pm local time in Dallas, included 68 owners and high level managers representing 168 Fox affiliates, and was very productive, said Jeff Rosser, Fox affiliates board chairman.

While issues stemming from Fox’s affiliation agreements were a major impetus in the meeting being arranged, Rosser said a “wide variety” of points were covered, including the ongoing legislative challenges in Washington. “It ended up being a very productive, very positive meeting,” he said. “We hope to meet some positive results to the challenges we face.”

Gannett has agreed to acquire six Texas stations from London Broadcasting for $215 million.

The stations are KCEN Waco-Temple-Bryan, KYTX Tyler-Longview, KIII Corpus Christi, KBMT and subchannel KJAC in Beaumont-Port Arthur, KXVA Abilene-Sweetwater and KIDY San Angelo. They are a mix of NBC, CBS, ABC and Fox affiliates.

The deal is subject to regulatory approval and is expected to close this summer. The London stations are expected to generate revenue of approximately $50 million in 2014, while the transaction is also expected to provide Gannett with what it called “certain tax efficiencies” related to the sale of KMOV St. Louis. Including expected synergies and the anticipated tax benefit, the purchase price implies a 6.7x average 2014/2015 EBITDA multiple.

David Smith, Sinclair Broadcast Group president and CEO, voiced his interest in mobilizing broadcasters to petition elected officials to support hopes for a change in ownership limits.

Smith called the 39% US households cap “kind of ridiculous.” People receive content from the phone company, cable and broadcast, he said, yet only broadcast is subject to stiff restrictions.

“The reality is, the phone company reaches 100%, the satellite guys reach 100% and the cable guys do whatever they want to do, and broadcasters are constrained,” said Smith. We think it’s completely lopsided in terms of the ownership cap.” Smith urged broadcasters to use their local democracies to make change.

Federal Communications Commissioners Mignon Clyburn and Ajit Pai dropped in on the Fox affiliates board meeting April 7, educating the broadcast group leaders on how to better communicate their vitality to Washington.

Each had the floor for at least half an hour, said Jeff Rosser, board chairman. “We asked both, what is it broadcasters need to do to demonstrate the great value that free, over-the-air broadcasting brings to communities they serve,” said Rosser. “They said we need to come in -- that their doors are open and they’d like to spend more time with us.”

Rosser, group VP at Raycom, called Commissioner Pai “a friend to broadcast,” while the relationship with Commissioner Clyburn is more a work in progress. The pair had been invited to the Vegas meeting by the Fox affiliates board, which felt that all of those with joint sales arrangements were being penalized for those which skirted closer to running afoul of the rules.