FCC Auction 98 ended Thursday after 10 bidding days and 51 rounds, generating just over $4 million and selling 102 FM radio construction permits (CPs) out of 131 that were up for bid, the auctions website said. The amount of money generated and the level of participation were at the levels largely expected by the radio industry, several attorney experts said. Though the numbers for this auction were down from previous ones, that decline is consistent with the quality of the permits offered in auction 98, they said.
Monty Tayloe
Monty Tayloe, Associate Editor, covers broadcasting and the Federal Communications Commission for Communications Daily. He joined Warren Communications News in 2013, after spending 10 years covering crime and local politics for Virginia regional newspapers and a turn in television as a communications assistant for the PBS NewsHour. He’s a Virginia native who graduated Fork Union Military Academy and the College of William and Mary. You can follow Tayloe on Twitter: @MontyTayloe .
Sinclair sees $2 billion worth of “substantial opportunities” in relinquishing some of its licenses in the incentive auction, CEO David Amy said on an earnings call Wednesday. Amy has expressed interest in the incentive auction before (see 1506250060), though a Sinlclair executive subsequently said it wouldn't be actively participating (see 1507230064). The $2 billion number was arrived at using the median numbers for specific Sinclair stations provided in the Greenhill estimates of auction prices, Chief Financial Officer Christopher Ripley said. “The ultimate outcome will depend on the many auction variables which are unclear at this time,” Amy said. Ripley said Sinclair's view of the auction hasn't changed, but there's an industry view that the company won't participate. “So that's one of the reasons we put that statement in the earnings release here or call today, just to give some people a little bit more specifics around what the upside is for Sinclair,” Ripley said. The earnings could even be improved with channel sharing, Ripley said. Sinclair is in “active discussions” on channel sharing, he said.
With a Sept. 4 congressional deadline, the FCC Downloadable Security Technical Advisory Committee has focused on two proposals for technology neutral downloadable security, but remains far from unified, it was revealed at DSTAC's meeting Tuesday. DSTAC efforts coalesced around two rival plans: a pay TV-backed proposal that would use security based on HTML 5 and downloadable apps, and a “virtual head end” system based on link protection backed by members of the Consumer Video Choice Coalition, which includes Public Knowledge and TiVo. The DSTAC doesn't have to choose a winner between the two systems -- its final report will contain both proposals, Chairwoman Cheryl Tritt said. A final draft of the report outlining the proposals will be produced for a vote at the DSTAC's final meeting Aug. 28. The working group reports that will form the basis of the DSTAC's final product are available on the DSTAC homepage.
The Telecommunications Industry Association is increasing lobbying and outreach efforts as it adds major new members, said industry officials in interviews Monday. That lobbying and outreach is meant to keep ahead of industry convergence and “the IP revolution," CEO Scott Belcher said. AT&T and Comcast were announced as among new TIA members. Belcher pointed to the companies' membership as a sign that TIA’s new focus on being vocal is paying dividends.
The comment periods for the FCC’s proposal to preserve a vacant channel in the incentive auction for unlicensed use and wireless microphones were indefinitely suspended, the Media Bureau said in an order Wednesday. The delay followed requests for a three-week extension by both NAB and the LPTV Spectrum Rights Coalition. Instead of three weeks, the Media Bureau order announced a “brief suspension” of undefined length, intended to allow the parties to file comments after the FCC enacts the upcoming Auction Procedures public notice, which could include plans to repack TV stations in the duplex gap. “The Commission’s decision on final auction procedures may impact the availability of television channels for use by such devices in certain areas,” the order said. The delay also will allow the FCC to determine new comment deadlines, the order said.
AT&T's decision that 2016 and future specifications for Android smartphones will include activated FM chips is a boon to radio broadcasters, said NAB and broadcast attorneys Tuesday. AT&T's agreement to activate the chips is “a tipping point” in the effort to get the chips activated in all smart phones, Emmis Communications CEO Jeff Smulyan said. Emmis and NAB are behind NextRadio, an app designed to take advantage of activated FM chips by allowing smartphones to display interactive content and targeted ads that are tied to broadcast radio content. AT&T's move to activate the chips “marks a new beginning in mobile technology,” NAB President Gordon Smith said in a statement.
Broadcasters planning to take advantage of the capabilities of the upcoming ATSC 3.0 technological shift to lease spectrum to wireless carriers would be better served by participating in the TV incentive auction, said Incentive Auction Task Force Vice Chairman Howard Symons during a webinar Thursday. Largely about the incentive auction, the webinar, hosted by Broadcasting and Cable, also touched on the new broadcast standard and repacking.
The Copyright Royalty Board should reduce the rates noncommercial broadcasters pay in online music royalties, said the National Religious Broadcasters Noncommercial Music License Committee during closing argument Tuesday in the CRB proceeding on streaming music royalty rates (14-CRB-0001-WR [2016-2020]). SoundExchange, which represents artists and record labels, has argued that the noncommercial streaming rates shouldn't change. In June filings, Wiley Rein attorney Karyn Ablin pointed to superior deals made by College Broadcasters Inc. and NPR as evidence that the rate should change.
A ruling on the rates streaming music services will pay for music licensing is expected in December, after closing arguments in the case (14-CRB-0001-WR (2016-2020)) were held before the Copyright Royalty Board Tuesday. The hearing included long stretches of closed session, where the room was shut to outside parties because confidential information was under discussion, according to CRB staff.
A judge’s ruling that streaming TV service FilmOn is eligible for a compulsory copyright license could potentially lead to a circuit split and an eventual cert petition to the Supreme Court, attorneys told us Friday.