Radio Broadcast Agreement

Radio Broadcast Agreement

At the Town Hall meeting in January 2014, FCC Chairman Tom Wheeler announced his intention to take a closer look at the use of agreements in the LMA and Shell COMPANIEs, and said that there were some references in some recent decisions where we said we would do things differently in the future when it comes to these so-called shell companies. Later that month, it was reported that the FCC had frozen all ongoing acquisitions related to the use of shell companies, allowing the Commission to discuss policy changes. Among the transactions affected by this decision was the purchase of Sinclair/Allbritton mentioned above. [84] [85] The increased use of sharing agreements by media companies to create consolidated “virtual” duopoly was the subject of controversy between 2009 and 2014, particularly when the company purchased the facilities and assets of a television channel, but sold the licence to a third-party company linked to “Shell”, which then entered into agreements with the owner of the facilities on the operation of the channel in its name. Activists argued that the channels were using these agreements as a loophole in the FCC`s ownership rules, reducing the number of local media in a market by aggregating or consolidating news programs, and further perforating channel owners in negotiations over the broadcasting agreement with local subscription television operators. Station operators have argued that these sharing agreements allow for optimized and cost-effective operation that could be beneficial to the continued operation of lower-rated and/or financially low stations, particularly in smaller markets. [3] In a 2005 Canadian litigation Rogers Media and Newcap Broadcasting entered into a joint sale agreement for CHNO-FM in Sudbury, Ontario, standing up, but community interests and the lobby group Friends of Canadian Broadcasting provided the Canadian Broadcasting and Broadcasting Commission with essential evidence that it was in practice a de facto LMA that went well beyond advertising sales in program production and news gathering. MMAs in Canada cannot be implemented without the CRTC`s approval and in early 2005 the CRTC ordered an end to the agreement. [133] Following the approval of Sinclair`s purchase of Allbritton, Commissioner Ajit Pai criticized the FCC`s new guidelines and his approval of Sinclair`s proposal to close stations to comply with them. He described the three Allbritton stations as “victims” of the “crackdowns” against joint sales contracts and told WCIV: “Clearly, the Commission considers that it is better for this station to come out of the business than the fact that Howard Stirk Holdings owns the chain and participates in a joint sales contract with Sinclair. I disagree. That`s how I bet Charleston consumers would make the bet.

[82] In September 2014, Sinclair backtracked on its original plans and agreed to sell the licensed assets of WCIV, WCFT and WJSU to Howard Stirk Holdings for US$50,000 each and leased them until FCC approval. Unlike the other Howard Stirk Holdings stations, they are operated and programmed independently, and Sinclair has not entered into agreements on the operation of the stations on behalf of HSH. [110] [111] [112] [113] Due to restrictions imposed at the time by the FCC (which prevented joint ownership of several radio stations), local radio marketing agreements, in which a small transmitter would sell all of its airtime to a third party on time purchases, were widespread between the 1970s and the early 1990s. [4] These alliances have given larger emitters the opportunity to expand their reach, and smaller issuers to obtain a stable current. [4] In 1992, the FCC authorized broadcasters to own multiple radio stations in a single market. As a result of these changes, local marketing agreements for radio were largely cancelled, because broadcasters were able to directly purchase another channel rather than lend it – triggering a wave of mass consolidation in the r


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