Monday, March 31, 2014

FCC Cracking Down on Joint Service Agreements

This from the tip can't help but wonder what Nexstar/Mission Broadcasting thinks about this.

The Federal Communications Commission voted Monday to bar companies from controlling two or more TV stations in the same local market by using a single advertising sales staff.

The commission voted 3-2 to support Chairman Tom Wheeler's proposal to crack down on joint ad sales agreements between TV stations, which have proliferated in part because of a wave of consolidation in the broadcast industry. There are 128 joint-sales agreements in place around the country, according to Patrick Communications, a telecom brokerage firm in Maryland.

As a result of the vote, any station handling more than 15% of ad sales for another station will be considered the owner of both going forward, similar to how the FCC's rules treat radio stations. Stations will have two years to unwind the agreements or secure a waiver from the FCC.


At 9:10 AM, April 01, 2014, Anonymous Anonymous said...

I believe KLRT and KARK have separate sales teams don't they? I know they have separate sales areas.

At 9:57 AM, April 01, 2014, Anonymous Anonymous said...

It's too little and too late. The FCC is just a dinosaur trying to stay relevant – Not unlike the TV stations they presume to govern.

At 11:30 AM, April 01, 2014, Anonymous Anonymous said...

It may never happen---but the FCC's next target should be station groups that require a single bare-bones news staff to provide local news programming for more than 2 stations. At the top of that target list—Nexstar and Sinclair. It may sound like something out of ancient history--but I don't think that any right-minded FCC commissioner or station owner of TV’s “Golden Age” could have envisioned the damage done to television and radio news by today’s multi-station owners. Nexstar, Sinclar and their imitators have crushed most of the "good intentions" included in the original FCC regulations. Deregulation—de facto or otherwise-- can free an industry or shackle a profession. The outcome depends on all involved--not just the owners and managers who fail to do the “right thing. Are you a shareholder? Are the only important lines those at the bottom of your IRA or 401K? Other than the sociopaths among them, how do you think the GM investors and managers at feel today?

At 10:19 PM, April 02, 2014, Anonymous Anonymous said...

Thanks to deregulation and the laxity of ownership rules... broadcasting is made up of monopolies like Nexstar. They own too many stations, have leveraged themselves into non-payable debt.
Broadcasting is sitting on a huge bubble and when it bursts...the industry will morph into oblivion.

At 11:37 PM, April 02, 2014, Anonymous Anonymous said...

The FCC has let broadcasting in general get out of hand in the past 30 years.

The glory days of broadcasting are over. TV has done everything radio has done and things have come full circle.

Automation will replace most people in TV stations as it has replaced people in radio. Computer-run programming will and is working for TV.

Just wait and see. If you are not into technology or engineering (maintenance)you will be replaced.

It's a management dream and it will happen sooner than you think.


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