Speaking at the 2017 Hispanic Radio Conference in Fort Lauderdale, FCC Commissioner Michael O’Rielly advocated for a rule modernization that is sure to get broadcast media companies talking. He wants to get rid of the FCC’s current subcap rules for AM/FM ownership and he brought that topic up again this week in Las Vegas.
At an invitation-only breakfast presented by Garvey Schubert Barer, co-sponsored by the RAB, and held at the Las Vegas Country Club as the 2018 NAB Show officially got underway across the street, O’Rielly revealed that he wants a Notice of Proposed Rulemaking (NPRM) on loosening the Commission’s local ownership limits in front of all by the fall.
This would, in his mind, allow radio station owners to better compete against digital media companies for ad dollars.
O’Rielly’s comments were delivered to a room full of industry luminaries, including Ginny Morris, CEO of Hubbard Radio, and Jeff Smulyan, CEO of Emmis Communications. Media broker Glenn Serafin sat across from WBEB-FM 101.1 in Philadelphia owner Jerry Lee.
O’Rielly calls the current limits “harmful,” and with “significant challenges today” for radio against Google, Apple, Facebook, Amazon, and Netflix in the race for ad dollars, allowing a company to own more stations in a market will help — not hurt — the industry.
Today, ownership restrictions are based on a sliding scale that varies by the size of the market. In a radio market with 45 or more stations, an entity may own up to eight radio stations, no more than five of which may be in the same service (AM or FM). In a radio market with between 30 and 44 radio stations, an entity may own up to seven radio stations, no more than four of which may be in the same service. In a radio market hosting between 15 and 29 radio stations, an entity may own up to six radio stations, no more than four of which may be in the same service. Lastly, in a radio market with 14 or fewer radio stations, an entity may own up to five radio stations, no more than three of which may be in the same service, as long as the entity does not own more than 50% of all radio stations in that market.
O’Rielly has advocated for this since March 2017, when he appeared at the Radio Ink Hispanic Radio Conference. On Sunday, at the GSB breakfast, Smulyan asked if others at the FCC are on board with removing the subcaps. “The Chair is very much open to it,” O’Rielly told Smulyan.
Of course, with a 3-2 GOP majority and all of the Republicans in lock-step on agency “modernization,” a loosening of the current rules appears to be inevitable.
In response to a query by Radio Ink if any negative impact on diversity of station ownership and fewer radio broadcasting companies would be seen from a subcap loosening or elimination, O’Rielly would only say that “all of that needs to be tied up.”
Here we go again! When They loosened up the ownership rules, what happened? Clear Channel bought most of the Local Radio stations, and they grew to own thousands of Radio Venues in the Nation killing the Local spirit of radio to later on became bankrupt! Same shit happened with CUMULUS! localism, creativity, and job opportunities were killed by this FCC stupidities when they loosened up the Ownership Rules on the 1990’s! And now what? They want more of the same shit?
If Radio wants to compete with Digital and Social Media, They need to to the opposite! There are things that social media can not do against radio like for example, be in job place when you are working, be in your car when you are driving! Only with local talents, content, Diversity, and Strategies, the Radio industry will compete against those new challenges.
*Commercial Radio already owns the Most Powerful FM and AM radio stations!
*They own all the Translators with no hight limitations, so many of them are in top of high mountains, and *they cover the same terrain then full power FM radio stations!
*They own the most powerful AM radio stations in the nation!
*Many of the translators are used by the same companies to even broadcast more shit using those licensed translators clearly violating the FCC ownership rules!
*Their stupid and failed IBIQUITY technology its an insult to the Broadcasting industry. Its a technology full of interference to adjacent channels, and the broadcaster its obligated to pay for incredible royalties and patent copy rights, and the FCC sided with them to promote and implement this evil technology!
And what they have done with all this leverage? They bankrupted the industry!!! and Yet, they want more!!
Dissolving the ownership rules will kill jobs, will create an even bigger monster, and it will be a total harm to small broadcasters who dream to ever owning a radio venue in a decent radio market.
The answer to fight the Digital World its not allowing owner groups to own even more radio stations. The answer relies in the opposite: Allow more competition, more content creators, more owners who can give better prices and content at a better price! Allow the people, the younger generations to have a reason why in the hell to turn in to radio instead of PANDORA, SPOTIFY, Youtube, Or FACEBOOK!!
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Joel Nava
Professional Radio Strategist and Consultant!