Feed aggregator

Audacy has started the long road to what it hopes is financial recovery by filing for reorganization in federal bankruptcy court.

On Sunday, just days after a Wall Street Journal report indicated that a filing was imminent, the second-largest radio owner in the United States (by revenue) announced a prepackaged Chapter 11 filing in U.S. Bankruptcy Court for the Southern District of Texas.

In doing so the company expects to take a big bite out of its total debt, reducing it by 80%, from a staggering $1.9 billion to $350 million, by “equitizing” the debt. As part of the voluntary bankruptcy filing, its debtholders will receive an ownership stake.

The company said it will “continue operating its business in the ordinary course without disruption to its advertisers, vendors, partners or employees.”

Audacy, which owns 230 radio stations in 46 markets, said it reached agreement with “a supermajority of its debtholders on a financial restructuring that will significantly deleverage Audacy’s balance sheet and further position Audacy for long-term growth.”

The company formerly known as Entercom acquired a great deal of debt when it acquired CBS Radio in 2017. But David Field, the chairman, president and CEO, said in an announcement that Audacy got caught up in the “perfect storm of macroeconomic challenges” that have troubled the entire broadcast industry. He sought to put a positive face on the development and on the company’s long-term outlook.

“Over the past few years, we have strategically transformed Audacy into a leading, scaled multi-platform audio content and entertainment company through our acquisition of CBS Radio and by building leading complementary positions in podcasting, audio networks, live events, digital marketing solutions and our direct-to-consumer streaming platform,” Field said in the press release.

Nevertheless the firm has been posting big losses over recent financial quarters. In November it said its operating loss for Q3 was $281.7 million. In Q2 it lost $135.3 million .

Audacy says it filed a proposed Plan of Reorganization that incorporates the terms of the reorganization and is subject to approval by the court.

“(The reorganization) will establish a robust capital structure that enables Audacy to capitalize on its strategic transformation into a scaled, leading multi-platform audio content and entertainment company,” it said in a statement.

The Philadelphia-based company expects the bankruptcy court to hold a confirmation hearing in February.

Audacy is the third of the top three U.S. commercial radio companies to go through a Chapter 11 process in the past seven years. iHeartMedia’s 15-month Chapter 11 proceeding concluded in May 2019. Cumulus, the third-largest radio company, emerged from a seven-month Chapter 11 process in June 2018.

Audacy says it will continue to operate in the usual manner during the process. The company’s stock will continue to trade over-the-counter under the symbol “AUDA” after it was delisted by the New York Stock Exchange in November.

“Audacy continues business as usual and does not expect any operational impact from the restructuring. Trade and other unsecured creditors will not be impaired,” the radio company said.

[Read the announcement.]

The post Audacy Files for Chapter 11 Bankruptcy appeared first on Radio World.

Audacy Inc., in an early Sunday announcement, confirmed that the company has reached an agreement with a supermajority of its debtholders on a financial restructuring that the publicly traded company says “will significantly deleverage Audacy’s balance sheet and further position Audacy for long-term growth.”

Among the key takeaways from the restructuring, which the United States Bankruptcy Court for the Southern District of Texas will be overseeing:

• The agreement is what Audacy calls “a very positive outcome to ongoing discussions Audacy initiated with its lenders last year.” The company headed by David Field and CFO Rich Schmaeling said the moves “will establish a robust capital structure that enables Audacy to capitalize on its strategic transformation into a scaled, leading multi-platform audio content and entertainment company.”

Additionally,

• Audacy and its debtholders will undertake a deleveraging transaction that will equitize approximately $1.6 billion of funded debt, a reduction of 80% from approximately $1.9 billion to approximately $350 million.

To implement the agreement, Audacy has commenced a prepackaged Chapter 11 process.

Such a move was anticipated, given reports last week across the media. This, Audacy says, “demonstrates debtholders’ strong support for Audacy’s future and will allow for a quicker and more streamlined process.”

As a debtor-in-possession, Audacy expects that the U.S. Bankruptcy Court will hold a confirmation hearing in February and to emerge from bankruptcy once it receives FCC approval.

Meanwhile, Audacy stresses that it is “business as usual” and does not expect any operational impact from the restructuring.

Trade and other unsecured creditors will not be impaired, Audacy said.

“Over the past few years, we have strategically transformed Audacy into a leading, scaled multi-platform audio content and entertainment company through our acquisition of CBS Radio and by building leading complementary positions in podcasting, audio networks, live events, digital marketing solutions and our direct-to-consumer streaming platform,” said Field, Chairman, President and CEO of Audacy. “While our transformation has enhanced our competitive position, the perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending. These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring. With our scaled leadership position, our uniquely differentiated premium audio content and a robust capital structure, we believe Audacy will emerge well positioned to continue its innovation and growth in the dynamic audio business.”

During the Chapter 11 process, some of Audacy’s existing lenders have committed to provide $57 million in debtor-in-possession financing, comprised of $32 million of a new term loan and a $25 million upsize of the company’s existing accounts receivables financing facility from $75 million to $100 million.

Subject to the Court’s approval, the DIP financing and Audacy’s cash from operations and available reserves is expected to enable Audacy to fulfill commitments to employees, advertisers, partners and vendors.

What’s the situation for Audacy stockholders? Not good. While Audacy common stock will continue to trade over-the-counter under the symbol “AUDA” through the pendency of the Chapter 11 process, the company confirms that all shares are expected to be canceled and receive no distribution as part of Audacy’s restructuring.

.

.

Public Notice announcing the comment and reply comment deadlines for the Cable Operator and DBS Provider Billing Practices NPRM, MB Docket No. 23-405.

.

The FCC has announced a tentative agenda for its January meeting, and on it is an item to enhance use of the Disaster Information Reporting System (DIRS), which might directly impact radio broadcasters.

In a notice released this week, the FCC says it will consider a mandate that would transition the current, voluntary outage reporting structure to a mandatory structure for certain communications providers.

The FCC typically activates DIRS to collect operational statuses and restoration information from communications providers during major disasters and subsequent recovery efforts. The web-based system is used by wireless, wireline, broadcast, cable, interconnected VoIP, and broadband service providers.

FCC Chairwoman Jessica Rosenworcel says in a press release that, in addition to the possibility of mandating DIRS reporting for certain communications providers, the FCC will consider proposals to expand reporting from other providers. 

“Fast and reliable reporting of communications outages during disasters can help emergency management personnel make smarter and faster decisions when they matter most. It can also offer valuable lessons to prevent service disruptions in the future,” Rosenworcel says.

DIRS filing has been voluntary since it was established in 2007, in response to the devastation caused by Hurricane Katrina. However, the FCC in 2021 considered a proposal that would have possibly mandated broadcasters to submit status reports following hurricanes and other natural disasters. While the focus of the proceeding was primarily on wireless networks and the 9-1-1 infrastructure, the FCC also examined DIRS participation by broadcasters. 

As the proceeding commenced, the commission admitted that making broadcaster reporting in DIRS mandatory would be a significant change. “We recognize that a proposed requirement to file in DIRS must be balanced against additional burdens on service providers, particularly as DIRS reports are filed in the midst of disasters and other emergencies,” it noted.

At the time, an excess of hurricanes and wildfires seemingly prompted the FCC to more closely examine the protocols it uses to gather information from broadcasters and others following a natural disaster. 

It appears now the commission is ready to follow through with new rules for using DIRS. The commission’s monthly meeting is scheduled for Thursday, Jan. 24.

[Sign Up for Radio World’s SmartBrief Newsletter]

FCC says in the notice — under an item listed as Improving Network Reliability, Resiliency and Transparency During Disasters — it will consider a Report and Order and Further Notice of Proposed Rulemaking to ensure participation in, and enhance the use of DIRS. 

The National Association of Broadcasters and state broadcasters’ associations told the FCC in comments during the proceeding that mandatory participation for broadcasters in DIRS was unnecessary. The groups argued mandatory reporting would possibly undercut the system and divert critical broadcast resources.

The NAB at one point told the FCC if it believed DIRS reporting should be mandatory, then perhaps the onus should be on the government to create and fund an automated system that identifies which broadcast stations are operating following a disaster.   

Meanwhile, the FCC’s Public Safety and Homeland Security Bureau recently launched a new version of DIRS.

The FCC decommissioned the old version of DIRS in December 2023 in favor of the new platform, which is accessible here. The new DIRS system has been modernized to enhance security and network features to better ensure the integrity of the system. The commission said in order to facilitate a smooth transition for users ahead of the 2024 disaster season, the agency will conduct a DIRS exercise on Jan. 16–18, 2024. The focus of the exercise will include the operation of DIRS and the mechanics of navigating the application.   

The new DIRS platform will also feature an Application Programming Interface, the FCC says.

Current DIRS users without an existing account in the FCC’s Commission Registration System (CORES) will need to create a CORES account prior to accessing DIRS. Current DIRS users with an existing CORES account will not need to create a new account. 

Detailed information on creating DIRS accounts, as well as using the system, can be found in the user’s guide, available online.

[See Our Business and Law Page]

The post FCC Appears Ready to Mandate DIRS Reporting by Radio Stations appeared first on Radio World.

A noncom FM radio station on Santa Catalina island in southern California will need to get its online public file straightened out if it wants to keep its license. 

The Audio Division of the FCC has renewed KCFH(FM) in Two Harbors, Calif., for one year instead of the usual eight. 

The station is licensed to Common Frequency Inc., which usually is in the news for helping other organizations launch community, LPFM and college radio stations but which is also is the licensee of five stations in California and Oregon. 

The short-term renewal of KCFH is granted on the condition that Common Frequency reconstruct several missing issues/program and donor lists. 

The commission also will be watching to see if the station stays on the air. It noted that KCFH had been off the air for more than half of its license term since Common Frequency acquired it in 2015. 

Santa Catalina, one of California’s Channel Islands, lies southwest of Los Angeles. It’s known for its wildlife, dive sites and Mt. Orizaba, its highest peak.

Even though the station had special temporary authorization for those silences, the commission says it “has repeatedly fallen short of that which would warrant routine license renewal” because of the extended periods of silence. The fact that KCFH has been on the air full-time for the last 10 months “does not offset its failure to broadcast during the majority of its stewardship.”

The FCC also took Common Frequency to task for certifying that it had met the public inspection file requirements. It said the station file is missing issues/programs lists for many quarters, and that others “were not timely and some were reconstructed almost two years past their due dates.” Further, lists for later quarters “appear to reflect programming aired only on two other stations operated by the same licensee” or describe segments of a single syndicated program.  

“Although there is insufficient evidence to support a finding that licensee’s false certification of public file compliance is due to any deliberate misrepresentation or lack of candor, the file’s deficiencies clearly demonstrate gross negligence and make it impossible for us to determine that the station met its obligation to provide public service programming for its community, even during the portion of the license term it was on air,” the Audio Division wrote.

“Moreover, we are concerned that licensee certified it had met the requirements when it clearly had not.”

So the FCC has issued an admonishment and a conditional short-term renewal. 

KCFH must bring its OPIF into compliance by March 1. “This limited, conditional renewal period will afford the commission an opportunity to review the station’s public service performance, as well as compliance with the act and the commission’s rules, and to take whatever corrective actions, if any, that may be warranted at that time.”

Under FCC rules, Common Frequency can challenge the conditional grant within 30 days. The organization did not immediately reply to an email inviting comment.

[See Our Business and Law Page]

The post Santa Catalina Noncom Gets One-Year License Renewal appeared first on Radio World.

Phil Lombardo, who served as NAB Joint Board Chairman, Broadcasters Foundation of America chair, and founded Citadel Communications, has passed away at 88. Under his leadership, the BFoA’s annual financial assistance grew from $60,000 to nearly $850,000. Lombardo served as chair for the BFoA for thirteen years.

Lombardo’s broadcasting career began at WBBM-TV as a production assistant. Rising through the ranks, he later moved to New York to take over Corinthian Broadcasting. After nine years, Lombardo resigned to start Citadel Communications in 1982. The last Citadel station was sold to Nexstar Media Group in 2023.

BFoA President Tim McCarthy told Radio Ink, “Phil was a legend in the industry, a tremendous businessman, but most importantly, he had an unparalleled commitment to broadcasters in need. He really, really cared.”

The BFoA named its annual celebrity golf tournament during the NAB Show in Las Vegas after Lombardo in 2010.

Upon stepping down from his role at the BFoA in 2016, Lombardo said, “It has been my great honor to give back to this industry that has been so good to me and to so many. Foundation recipients were hard-working broadcasters, committed to their stations and communities, and now destitute, often alone, and in need of our support. It has been the most rewarding endeavor of my career to serve our colleagues in need.”

— Reporting by Streamline Publishing’s Radio Ink

He joined Coastal Television Broadcasting Group in November 2021 as Chief Revenue Officer. Now he’s tacking on the title of President at the broadcast TV station owner.

Don Fisher officially became Coastal’s President/Chief Revenue Officer on January 1, 2024. The company says Fisher has played a significant role in Coastal’s leadership and revenue growth for its then-existing portfolio of stations in Alaska and Wyoming, as well as the stations added with the portfolio of former Waypoint stations in Meridian, Ms.; Jonesboro, Ark; Jackson, Tenn.; Lafayette, Ind.; and Elmira-Corning, N.Y.

Coastal Television Founder and CEO Bill Fielder shared, “I have worked with Don since May 2002 and his leadership and experience represent exactly those skills Coastal needs to help move us to our next level.  We are so proud he has agreed to immediately step into this leadership role.”

After nearly 40 years of service and leadership in local television, the VP/GM of Cox Media Group‘s flagship television station in Atlanta will be retiring at the end of the first quarter to accept “his calling” to lead the California Modesto Mission within the Church of Jesus Christ of Latter-Day Saints.

Ray Carter has worked as a producer, reporter, anchor and News Director. His first VP/GM role came at WPXI-11 in Pittsburgh. He then became a regional VP within CMG before taking the VP/GM role at WSB-2 in Atlanta in 2019.

“Ray is one of the most impactful leaders in our industry. He brought an overwhelmingly positive energy to our business and deep passion for people and community he serves,” said Cox Media Group President/CEO Dan York. “At the same time, he’s been an advocate for the value of local news and investigative journalism and the important impact of local broadcasting.”

Carter commented, “I’m proud of what we’ve been able to accomplish as a team and the difference we’ve made for those we serve in and around our communities. And let me be clear – this was absolutely always a team effort and a testament to what a group of people can do when they are focused on a shared purpose and reason for serving.”

Carter has served on the affiliate boards of ABC and NBC, and just completed a term as the Chairman of the Georgia Association of Broadcasters.

“Ray is a terrific leader and strong ambassador for CMG and our industry,” York added. “As importantly, he’s a genuine, authentic and outstanding person. He lives what he believes, believes what he lives, and he’s a shining example of what true servant leadership is all about.”

There was no news as of yet surrounding Carter’s successor.

It’s no secret that heritage MVPDs offering cable television service packages to customers continue to lose subscribers to streaming video services. But, just how many internet households have only a pay-TV service and don’t use a streaming platform?

Very, very few of them, a newly released study from Parks Associates finds.

 

Please Login to view this premium content. (Not a member? Join Today!)

The E.W. Scripps Company has placed 13 veteran print journalists across its local and national newsrooms as part of the second cohort of its Google-backed Journalism Journey Initiative, which aims to recruit mid-career journalists and managers in the industry and redeploy their reporting skills for video-driven reporting platforms.

Scripps launched the Journalism Journey Initiative, for which Google has made a multiyear financial commitment to Scripps to underwrite, with the first cohort of six journalists in 2023.

After a successful first year of the program, Scripps is expanding the program by funding an additional seven journalists for 2024, the company says.

“Year one of the Journalism Journey Initiative at Scripps saw the first group of journalists producing essential coverage, including reporting that led to changes in laws, exposed wrongdoing and went in depth on important local and national issues,” said Jim Iovino, program director for the Scripps Journalism Journey Initiative. “Their success is a testament to the incredible amount of expertise in local print newsrooms around the country and what can happen when video-driven newsrooms harness that talent to help tell stories that need to be told. It’s why Scripps has made the investment to expand the number of journalists we can help transition from print-to-video reporting. These 13 journalists have the fundamentals, and we’ll be giving them the tools they need to connect with their audiences and communities on visual-based platforms.”

The JJI program will provide extensive training and support, including mentoring, skill development and individual talent coaching. Journalists will be based out of Scripps’ local television stations across the country and national news network Scripps News.

Scripps’ Journalism Journey Initiative second journalist cohort (2024-2025):

• Jasmin Barmore is a neighborhood and community journalist whose work has made national headlines and was nominated for a Pulitzer Prize. Barmore most recently reported for The Detroit Free Press and holds bylines with The Detroit News, BET and The New York Times. She will be working for Scripps’ Detroit ABC affiliate, WXYZ.
• Manuelita Beck has 18 years of experience in digital transformation and content strategy. Beck was most recently the politics editor at The Philadelphia Inquirer. Previously, she spent seven years at Gannett in several editing and digital roles at the Arizona Republic, USA Today and IndyStar.com. A New Mexico native and Latina, Beck is an enrolled member of the Navajo Nation and is Tábąąhá (Water’s Edge Clan). Beck will work at KNXV, Scripps’ ABC affiliate in Phoenix.
• Maki Becker was born in Japan, grew up in California and has lived around the country, but Buffalo, New York, has become her hometown. Becker has been on The Buffalo News staff since 2005. She previously worked at the New York Daily News and The Charlotte Observer. She was also a stringer at the Los Angeles Times. Becker will work at WKBW, Scripps’ ABC affiliate in Buffalo.
• Keith BieryGolick has spent a decade reporting in Cincinnati. In 2018, he was part of a team of reporters that won a Pulitzer Prize for their examination of the region’s opioid epidemic. BieryGolick will work at WCPO, Scripps’ ABC affiliate in Cincinnati.
• Edward Celaya worked previously at the Arizona Daily Star. He started his career as an opinion and editorial writer, covered breaking news and helped develop the first full-time cannabis beat at a major newspaper in Arizona. Celaya will be joining the team at KGUN9, the Scripps ABC affiliate in Tucson, Arizona.
• Jennifer Glenfield previously worked for the Tampa Bay Times. As the senior video producer, Glenfield earned a Suncoast Regional Emmy for a digital video series focused on history and culture and was part of the multimedia teams on two Pulitzer Prize-winning investigations. She previously covered social justice issues with Univision’s Fusion Media Group. Glenfield will be joining Scripps News.
• Craig Harris will begin his 33rd year in journalism in 2024. He most recently was editor of the startup The Coronado News, which won two national awards for its investigation of the Tijuana sewage crisis. Harris has worked at seven daily newspapers, including USA TODAY and The Arizona Republic, where he was a two-time Polk Award winner and was among the lead writers when The Republic was twice a finalist for the Pulitzer Prize in breaking news. Harris will work at KGTV, Scripps’ ABC station in San Diego.
• Michelle Jarboe has written extensively about real estate and economic development. She previously worked as an enterprise reporter for Crain’s Cleveland Business. Before joining Crain’s, she covered real estate for The Plain Dealer newspaper in Cleveland for more than a decade. She will work at WEWS, Scripps’ ABC affiliate in Cleveland.
• Maria Morales comes from Baltimore Sun Media, where she was a senior content editor. She previously reported on race, culture and social justice issues for The Crisis Magazine and The Afro-American Newspaper. Her work has been published in The New York Times, Pittsburgh Post-Gazette, Los Angeles Business Journal, The Press-Enterprise and a host of magazines. Morales will work at WMAR, Scripps’ ABC affiliate in Baltimore.
• Steve Sebelius was most recently the politics and government editor for the Las Vegas Review-Journal, where he also wrote a weekly political column. He’s also been editor of Las Vegas CityLife, at the time the oldest alternative newsweekly in Las Vegas. Sebelius will work at KTNV, the Scripps ABC affiliate in Las Vegas.
• Taylor Stevens’ career has taken her from homeless camps in Phoenix, Arizona, to the banks of the Great Salt Lake and into southern Mexico to report on the immigration crisis. She recently spent a year and a half working as a freelancer with The Associated Press’ Global Investigations Team on a national project focused on policing practices. She will work as an investigative reporter at KSTU, Scripps’ FOX affiliate in her hometown of Salt Lake City.
• Kadia Tubman is the former managing editor for diversity, equity and inclusion for Insider’s global newsroom. Prior to joining Insider’s editorial leadership team, Tubman was a senior news editor guiding Insider’s breaking news coverage between New York, London and Los Angeles on weekends. Before Insider, she was a national politics reporter at Yahoo News and a Reuters journalist fellow at the University of Oxford. Tubman will join Scripps News.
• Harm Venhuizen most recently worked at The Associated Press, where he was a Report for America corps member covering Wisconsin state government with an emphasis on elections and voting rights. He previously reported on the U.S. military for Military Times. Venhuizen will continue covering Wisconsin politics for TMJ4 and WGBA, Scripps’ NBC affiliates in Milwaukee and Green Bay.

Cumulus Media’s news/talk station in north Texas, 820 WBAP(AM), has found a new home on the FM dial, simulcasting on an FM translator at 93.3 MHz

93.3 FM/KLIF(FM) was formerly programmed as Hot 93.3, an adult contemporary station.

With this new simulcast, WBAP will now be heard by FM listeners that don’t normally listen to AM radio, but who consume the news/talk format in the Dallas and Fort Worth markets, according to WBAP.

“We will carry our stations on a variety of signals and streaming to improve accessibility of this outstanding news and talk content to our listeners,” said Dan Bennett, regional vice president of Cumulus Dallas/Fort Worth and Houston, in a press release. “2024 will be a great year for news/talk.”

The change, made on Jan. 3, also includes several personnel changes and hires to support the additional signal. Learn more about those changes here.

“As we move into a critical election year, these talent moves and an FM frequency for WBAP speak to our commitment to spoken-word radio,” said Bennett

The Class A, clear-channel station broadcasts with 50 kW from a transmitter site in Mansfield, Texas. The AM first went on air in 1922.

WBAP joins the growing list of traditional AMs that have added an FM signal to expand their reach. In recent years, WINS in New York, KMOX in St. Louis, KDKA in Pittsburgh and KYW in Philly have done the same.

Submit business announcements to radioworld@futurenet.com.

The post WBAP in Texas Adds an FM Signal appeared first on Radio World.

Starting February 12, an extra hour of “Get Up DC” will be offered to viewers of the TEGNA-owned CBS affiliate serving the National Capital Region. This will result in a shift of “Great Day Washington” to a 30-minute slot in afternoons on WUSA-9 in Washington, D.C.

The early-morning local news program “Get Up DC” will return following the national two-hour CBS Mornings in the 9am hour, running until 10am. “We’re meeting our audience’s needs by adding an extra hour of news every morning to help prepare them for the day ahead,” said Michael Valentine, WUSA9’s VP/Station Manager.

“Get Up DC” anchors Wisdom Martin, Allison Seymour (who returned to the wake-up show in June 2023) and Annie Yu will also host the 9am hour for the soon-to-be-expanded show.

To accommodate the change, “Great Day Washington” will shift to 3pm as “Daily Blast Live” retains the 3:30pm 30-minute time slot. In recent weeks two episodes of “Daily Blast Live” have aired in the 3pm hour as “Inside Edition” relocated to 7pm.

“Great Day Washington” explores the region’s entertainment, food, travel and serves up “helpful information for our audience, including relevant sponsored segments,” Valentine says.

For investors seeking a stronger EchoStar Corp. following its merger with Dish, the team at S&P Global Ratings may have put a damper on what they’ve been wanting from the company.

A rating action taken by S&P on Friday suggests that combining Dish with EchoStar, whose primary operating subsidiary prior to the merger was Hughes, “does not solve its financial problems.” But, it does improve EchoStar’s liquidity position.

Please Login to view this premium content. (Not a member? Join Today!)

Omni Broadcasting has failed to convince the FCC to restore the license of WTKP(FM) in Port St. Joe, Fla.

The FCC staff had decided last summer that the license for WTKP had expired after an extended period of unauthorized operation.

Omni subsequently appealed by filing a petition for reconsideration. Omni had hoped to sell the station to Divine Word Communications and had applied last March to do so.

In December Albert Shuldiner, chief of the Media Bureau’s Audio Division, denied the petition.

The case began in 2015 when the station began using an alternate tower site during a landlord dispute. The case eventually involved a series of STAs, CPs and other applications. At one point FCC field inspectors observed the station operating from a third, unauthorized location 40 miles away, though Omni had not sought authorization to do so.

It all led the commission to rule last summer that in 2016–17 WTKP had failed to operate from an authorized site for at least a consecutive 12-month period, meriting automatic license expiration, and that it had failed to respond fully to the FCC’s questions about the situation. 

Omni appealed and listed at least nine reasons that the decision should be reversed. Among them was that it had  simply been trying to keep the station on the air; that its failure to provide certain documentation was not grounds for dismissal; that operation from a third site could have been licensed if it had asked for an STA; that it can’t afford full-time engineering staff or legal counsel, which led to the unauthorized operation; and that dismissal was counter to the commission’s policy to support minority-owned stations.

But Shuldiner wasn’t having any of it. 

“We are not persuaded by Omni’s attempts to excuse its actions,” he wrote, and laid out why he was rejecting each of the Omni arguments. 

Among other things, he wrote that the original ruling “correctly concluded that Omni had operated from an unauthorized location for more than 12 months resulting in expiration of the license. … Omni admits that it operated from the unauthorized Site C location for over one year … Omni also acknowledges that it failed to seek STA to operate from Site C. Our analysis need not go any further. The commission has consistently applied section 312(g) to cancel licenses when the station has operated from an unauthorized site for more than 12 months.”

But he said Omni also had failed to provide evidence that its operation at Site C was due to factors beyond its control. He said that applicants are solely responsible for complying with the rules, regardless of whether they are represented by counsel. And he wrote that “minority status alone does not warrant reinstatement under the equity and fairness provision” of the rules. 

The FCC summary of Omni’s appeal and Shuldiner’s further explanations is here.

[Related: “FCC Gives Birach AM Another Chance“]

The post No Luck for Omni Broadcasting in WTKP Appeal appeared first on Radio World.

Question: When the FCC considers a radio station’s application to move to a different location, what evidence would suffice to demonstrate that the proposed spot is a “licensable community”?

Is it enough that the area — let’s call it Horse Creek — is named on a map? That the licensee can show photos of a local elementary school, post office and fire station? That there is a Horse Creek Cattle Company Stone House and Ranch at the spot? 

This question isn’t just academic. The FCC has just rejected an application from KLLM(FM) in Wheatland, Wyo., owned by Michael Radio Co., to relocate its transmitter to a new site and change its community of license to Horse Creek, an unincorporated area closer to populous Laramie.

But White Park Broadcasting, which owns several stations of its own in Wyoming, filed an informal objection. It said Horse Creek is not a licensable community for allotment purposes.
Now the commission has agreed. It also issued a general public reminder to applicants regarding the types of online photos and other images often used as documentation in such cases.

The timeline

Michael Radio Co. originally had asked to change KLLM’s community of license to West Laramie, about 60 miles southwest of its current market of Wheatland. After the FCC sent a deficiency letter questioning whether West Laramie constituted a community for its allotment purposes, Michael amended its application to change to Laramie itself. But the FCC said retaining a fourth local service at Wheatland would be preferred over an 11th local service for Laramie.

In August Michael again amended the application, specifying Horse Creek, about 20 miles outside of Laramie.

It told the FCC that this move would provide a first local service there, and it provided materials to make its case that Horse Creek is a community.

According to the FCC summary, the evidence included a screenshot of the Wikipedia web page for Horse Creek; a topographical map marked Horse Creek; a photo of Clawson Elementary School; screenshots containing demographic information for the local Zip code; a photo titled “Horse Creek Post Office and Store;” screenshots of a Facebook page titled “Horse Creek; Wyoming”; a Google Maps photo of the Horse Creek Fire Station; a sign for the Horse Creek Campground in Shoshone National Forest; a screenshot of a Facebook page for the Horse Creek Honey food stand in Cheyenne; and Facebook and Google Maps photos of Horse Creek Cattle Company Stone House and Ranch (“described as a rental venue for weddings, business retreats and family vacations,” according to the commission summary).

A sign for the Horse Creek Campground in Shoshone National Forest was among the evidence submitted by the applicant.

But in its objection to the application, White Park argued that the elementary school is merely part of a regional school system serving all of Laramie County; that the fire station is not a local organization; and that the businesses bearing the “Horse Creek” name do not have physical locations in Horse Creek. 

It compared Horse Creek to West Laramie which, in 2010, the bureau ruled was not a licensable community. As White Park sees it, “There are absolutely no civic, cultural, religious, social or commercial entities in Horse Creek that serve to create any form of community.” It argued that if Horse Creek is deemed a community, “the commission will have eviscerated the allotment standards … and opened itself up to an unlimited number of allotment modification submissions.”

Michael defended its proposal by saying that incorporation is not a prerequisite for community status; that Horse Creek is a geographic location used by mapping, weather and real estate services; and that though Horse Creek provides no government services, its fire station and school are in the community, with Horse Creek addresses, and are intended for use by residents and businesses of Horse Creek. 

[See Our Business and Law Page]

The ruling

White Park prevailed.

“We find that Horse Creek is not a licensable community for allotment purposes,” Audio Division Chief Albert Shuldiner has ruled. 

His order walks the reader through the determination process.

“If a locale is not either incorporated or listed in the U.S. Census, the proponent of an allotment must show that it is a ‘geographically identifiable population grouping.’ The principal test for this is whether the ‘residents function as and conceive of themselves a community around which their interests coalesce.’”

He said this may be demonstrated by testimony of residents and/or other “indicia of community.” Factors that are frequently considered are whether the community is marked on a published map; whether it has a post office that offers residential service; whether it provides municipal services such as education, police and fire protection; whether it would more logically be considered part of another, more established, community; whether it supports commercial activity; and whether its name is used on businesses and other organizations. 

“The test to determine whether a specific location qualifies as a community … is a liberal one and takes into account the totality of the circumstances,” Shuldiner wrote.

Horse Creek is not incorporated or listed with the U.S. Census, and Michael didn’t provide statements from residents. So Shuldiner looked at map data, post office and Zip code information, governmental services and other parameters.

He agreed that Horse Creek is a physical place, based on the map data and the county fire authority. “Nonetheless, it is well established that a mere geographic location is insufficient to establish community status.”

While Michael claimed that there is a federal post office in Horse Creek, Shuldiner said that the post office closed in 2017 and that residents of Horse Creek now get their mail at a cluster box by vehicle from Cheyenne.  

“Although the 82061 Zip code area is designated as Horse Creek,” he continued, “this fact is of minimal value as an indicator of community status. As a routing tool used by the federal mail delivery system, a Zip code area may straddle towns, counties and even states.”

He noted that the elementary school and fire protection services are provided by a much larger county. In fact, “it appears that Horse Creek provides no governmental services at all.” And its minimal level of commercial activity does not support a finding of community status.

Taking all of that into account, Shuldiner rejected Michael’s application to change the stations community of license — “with no further opportunity for corrective amendment.”

Take care with pix

Shuldiner added: “We take this opportunity to caution applicants regarding the use of materials obtained exclusively from online sources.”

If an applicant to the Audio Division wants to use a website or information obtained online such as photographs, he said, it should make every reasonable effort to verify or authenticate the information provided.

This might include, for example, “making a site visit to the community it proposes to serve, obtaining a statement from an individual with personal knowledge of the facts alleged, or at the very least corroborating the information using another reliable online source. Importantly, any website used to support an application must be clearly identified with the site owner or publisher, title of the page, URL address, last date visited, and any other relevant information. If reviewing staff cannot identify or verify a submission, it will be excluded from our community status determination.”

Also, he said, petitioners and applicants must use the most recent 2020 U.S. Census data available when determining a community’s population in addition to the population served and overlap of service areas to communities and Urbanized Areas.

[Read the order.]

The post Sorry, KLLM … No Horse Creek for You appeared first on Radio World.

It was regarded by some Inside the Beltway pundits and industry observers as the Christmas lump of coal from FCC Chairwoman Jessica Rosenworcel and her Democrat colleagues at the Commission. Under a federal court order, the 2018 Quadrennial Order finally arrived, on a party-line 3-2 vote that tightened television industry local ownership rules while keeping the FCC’s radio rules intact.

While this was hardly a surprise and the 2022 Quadrennial Order is still far from completion, the NAB has expressed its disappointment, saying the FCC has missed an opportunity to update “outdated, decades-old rules.”

In its member newsletter distributed Friday (1/5), the NAB noted how broadcasters were “deeply disappointed, though not surprised, that the FCC missed the opportunity to update the decades-old rules that hurt local stations’ ability to provide diverse and essential content to our communities” with the December 26 release of its 2018 Quadrennial Order.

At issue were the local radio rules, and the both the local TV rule and dual network rule.

The FCC made no changes to the long-standing numerical limits on the ownership of AM and FM stations in local markets.

The FCC also retained without change the current dual network rule, which prohibits combinations among the ABC, CBS, Fox and NBC networks.

The FCC retained the local TV ownership restrictions, which prohibit ownership of more than two full-power commercial TV stations in any local market and the ownership of more than one top-four rated full-power commercial TV station in any local market.

But, to the frustration of many across the broadcast media landscape, the FCC tightened the top-four rule to prohibit a broadcaster from acquiring a network affiliation and placing it on a low power TV or Class A station or on a multicast programming stream, if the broadcaster would be otherwise prevented by the top-four restriction from placing that affiliation on a separate full power station.

This latter act could result in a lawsuit from the NAB and television broadcasting companies, some in Washington suggest, which would block the enactment of this new rule. If that were to occur, however, it could further delay the 2022 Quadrennial Order, already 12 months late.

While NAB’s team led by Rick Kaplan continues to examine the details “of this lengthy order,” the association tells its members, “It is clear that the FCC fails to grasp the deep challenges local broadcasters face in the wake of unprecedented competition with Big Tech behemoths.”

And, the NAB reiterated its statement that broadcast stations remain “a critical source of information in every community across the country.” Plus, the NAB noted, “It takes significant resources to provide up-to-the minute news, emergency journalism and other services. No other medium has the responsibility, the ability or incentive to serve the public’s needs. To continue offering free, over-the-air service, broadcasters must be able to compete on a level playing field.”

 

Add another secular-to-religious radio station transaction to the long list of deals that have seen the conversion of commercially licensed properties to non-commercial facilities focused on spreading the word of God through songs of worship.

 

Please Login to view this premium content. (Not a member? Join Today!)