That’s the “burning question” for a group of panelists appearing at Forecast 2022, who were posed with the following scenario: assuming Jessica Rosenworcel is confirmed as the official Chairwoman of the FCC, how will it effect something like multiple ownership?
BIA Advisory Services SVP/Chief Economist Dr. Mark Fratrik isn’t bullish on a Rosenworcel-led Commission leading a relaxation of ownership rules, regardless of how important and needed it is. “What’s high on their agenda is ‘net neutrality’ and things related to broadband issues,” Fratrik says.
Bob Mc Allan, CEO of Press Communication LLC and PMCM TV LLC, was more downtrodden in his prospects for regulatory relief from the Commission — short a new President in January 2025. “I don’t think we have a prayer of getting the relief that we really need,” McAllan said.
But, he suggested that the FCC “could throw us a bone” by allowing radio station owners to own an additional FM station. That could help an owner like Mc Allan, who operates in Monmouth-Ocean, N.J., and competes against big New York City-based AMs and FMs.
Justin Nielson, Senior Research Analyst/Broadcast Media at Kagan, believes a subcap raise to six FMs and no AMs “could get the market moving,” with respect to dealmaking. But, it would also lead to consolidation and some licensees to exit the industry — leading to less diversity, something Rosenworcel and Starks have been vocal about.
Also on the panel is Justin Sasso, President/CEO of the Colorado Broadcasters Association. He commented that many members were asked about subcaps. “Everyone wants them raised among CBA members,” he said. “In smaller and medium sized markets, owners cannot expand or look at another market near them.”
What is most concerning to Sasso is the chances that deregulation will lead some to get out of the business. Sasso is one of them. He has a standalone AM to the north of Denver, competing against stations from Colorado’s biggest market.
The panel also touched on the topic of ZoneCasting, from GeoBroadcast Solutions. While it could be of big benefit in some markets, Mc Allan views it as a significant threat to his business. Why? New York stations could use it to siphon more listeners, and dollars, away from his Monmouth-Ocean properties.
For Sasso, the very concept of ZoneCasting flies in the face of what AM and FM have always been designed to do. “We are a one-to-many broadcaster business, and that fundamentally cannot be allowed to change.”
