Wheeler Proposes No Change To Ownership Rules

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    A fact sheet (READ IT HERE) on the FCC’s ownership rules has been circulated by FCC Chairman Wheeler that will finally address the Commission’s responsibility to review media ownership regulations. Called the Quadrennial Review, the Commission is late in addressing this issue by several years. Wheeler’s fact sheet, for the most part, leaves the current rules in place. Many in the radio industry were hopeful the Commission would loosen up the regulations, claiming the way consumers take in media has so drastically changed in recent years that change was needed in order for radio and TV to compete. Here is what Wheeler has on his fact sheet for radio…

    On the local radio ownership rule, Wheeler says the Commission will retain the existing rule with minor clarifications to assist the Media Bureau in processing license assignment/transfer applications. (For example, the item adopts a new Puerto Rico market definition based on Commission precedent, and also clarifies the grandfathering rules applicable to community of license changes.) Regarding the Radio/Television Cross-Ownership Rule, Wheeler says the Commission will retain the existing rule with a modification to address the transition to digital television broadcasting.

    Wheeler writes that while advances have changed the ways in which many consumers access entertainment, news, and informational programming, traditional media outlets remain of vital importance to their local communities. “Our analysis indicates that the ownership restrictions remain necessary in the public interest, though the realities of the media marketplace require some targeted modifications of a number of the rules.”

    Here is the Local Radio Ownership Rule:
    The number of radio stations in a radio market that may be commonly owned is tiered, depending on the total number of full-power commercial and noncommercial radio stations in the market:
    – 45 or more radio stations: an entity can own no more than eight commercial radio stations, no more than five of which may be in the same service (AM or FM).
    – 30-44 radio stations: an entity can own no more than seven commercial radio stations, no more than four of which may be in the same service.
    – 15-29 radio stations: one entity can own no more than six commercial radio stations, no more than four of which may be in the same service.
    – Less than 15 radio stations: one entity can own up to five commercial radio stations, no more than three of which may be in the same service, provided, however that an entity cannot own more than 50 percent of the radio stations in the market. Despite the latter provision, the rules do allow common ownership of an AM and an FM station in the same market.

    And here is the Radio/TV Cross-Ownership Rule:
    The number of commercial radio and television stations an entity may own in the same market is tiered, with the amount of common ownership permitted depending on compliance with the local TV and radio ownership rules and the number of independently owned media voices (television and radio stations, cable systems, and newspapers) that would remain in the relevant market if the stations at issue are commonly owned:
    – Regardless of market size: up to two TV stations and one radio station.
    – If at least 10 independently owned media voices remain: up to two TV stations and four radio stations.
    – If at least 20 independently owned media voices remain: up to two TV stations and six radio stations, or one TV station and seven radio stations.

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