Connoisseur Media CEO Jeff Warshaw called the FCC’s embedded rule dumb and said it needed fixing…so the FCC fixed it. The embedded rule only affects two markets, New York and Washington, DC, however it’s important enough to Warshaw that he’s been providing the FCC with data and meeting with FCC staff to try to get this rule changed. And, he operates in one of those markets, Long Island. The embedded market rule lumps stations in a market like Long Island in with New York City.
The Commission voted to give broadcasters in these markets a presumptive waiver. Without it, broadcasters in the two embedded markets would have to comply with the FCC’s ownership limits in both markets and that might prevent them from purchasing stations. The Commission agreed with Warshaw’s argument that embedded market stations, like stations in any other market, compete principally in the market where they are located, and owners of those stations should not be prevented by the FCC’s ownership rules from owning stations in other embedded markets.
After the vote Warshaw was very thankful. “We thank Commissioners O’Rielly and Carr for their statements on the issue at today’s meeting and for the support of their offices in reaching today’s decision. We appreciate the new policy of the Chairman making FCC orders available for review in advance of the meeting at which they are to be considered. This allowed us to demonstrate why this outcome was the correct one, based on the evidence we had supplied and the further statements in support of our arguments from Nielsen and BIA, to whom we are grateful for their help in insuring that the record accurately reflected their practices.”
Warshaw says he views this change as an important one but as a start for the radio industry generally to address the ownership rules. “The Commission today took actions making the ownership rules that apply to TV and newspapers more closely reflect the realities of today’s media marketplace. We look forward to the opportunity to actively participate in the discussion of how the rules relating to radio ownership can be changed to reflect the current media marketplace, as we believe that the radio industry today faces as much, if not more, change and disruption than do television and newspapers. But, for today, we are very appreciative of the relief that the FCC has granted, and we look forward to engaging on additional reforms soon.”
