From the nomination of Anna Gomez as the fifth FCC Commissioner to the impact of ownership caps on minority broadcasters, 2023 has been a year of both new and continued legal and regulatory challenges. Broadcast attorney Frank Montero and a panel featuring Larry Walke from the NAB, Justin Sasso from the Colorado Broadcasters Association, and Richard Lara from the Spanish Broadcasting System discussed the issues of the first six months and more at Hispanic Radio Conference.
All panelists expressed optimism about Anna Gomez’s confirmation. With extensive experience in Washington, having worked in various political roles without controversy, Gomez is expected to navigate the confirmation process smoothly. While some of her viewpoints are yet to be known, the consensus is that she needs to understand the challenges that broadcasters face from big tech.
Lara emphasized that what benefits Hispanic radio also benefits the entire radio industry. As a minority company, SBS believes that regulation can help level the playing field for minority owners to compete with larger companies. They view any regulation that supports minority ownership as favorable.
Walke discussed the ongoing efforts of the NAB to address ownership caps. The 2018 Quadrennial review remains incomplete, while the 2022 review is underway. One potential solution suggested was lifting the cap on FM stations, allowing for AM and FM consolidation. However, it is crucial to ensure that such a move does not result in the disappearance of AM radio altogether. Sasso added that eliminating AM caps could revitalize the band and bring new opportunities.
Lara then expressed his concern about any encroachment on over-the-air radio, even though SBS does not own AM stations. He emphasized the importance of preserving AM radio as any threat to its viability could eventually affect FM radio as well. The potential removal of AM from the dashboard of vehicles could pose a significant challenge to the industry.
Walke highlighted the difficulties faced by broadcasters in monetizing OTA radio compared to streaming audio, particularly for automakers. Access to capital was identified as a significant hurdle for minority owners. The panel discussed the potential return of the diversity tax certificate, which would provide incentives to large companies that sell stations to minority owners. Access to capital becomes even more critical with the possibility of federal interest rate hikes.
Finally, there was a question from the audience about the legality of cannabis advertising. Despite its legalization in many states, the federal government still considers it an illegal controlled substance. As a result, advertising cannabis over the airwaves is prohibited at the federal level, creating challenges for radio stations.
