In a presentation to the Federal Communications Commission’s Media Bureau, Connoisseur Media’s legal team called current radio ownership rules “anachronistic.”
That meeting, along with another from Beasley Media Group, took place last week, as major radio groups continue to put the full-court press on the FCC to remove local ownership restrictions.
Beasley urged the commission to either lift or “substantially revise” local ownership rules, while Connoisseur continued to call for eliminating the caps entirely.
Connoisseur’s legal team met with the bureau on July 15, while Beasley Media CEO Caroline Beasley and other company executives met with FCC Commissioner Olivia Trusty and her senior legal advisor, Marcus Maher, a day later.
The meetings are part of the the current FCC quadrennial rule review, which focuses partly on the Local Radio Rule that limits an owner to up to eight stations in the largest markets, with no more than five on either the AM or FM band.
The cap shrinks as market size decreases.
Both Connoisseur and Beasley each argued to the commission that when the current caps were decided, as part of the Telecommunications Act in 1996, big tech and other digital media forms were not around.
As a result, they don’t have to conform to the same rules radio companies do, the companies said.
An “anachronistic” rule
Connoisseur’s legal representation of David Oxenford and Jennifer Tatel of Wilkinson Barker Knauer, LLP, provided a slide deck used in the meeting to highlight its comments alongside those of other radio broadcasters.
In the meeting, the legal team advocated for Connoisseur and several other radio groups.
According to its notice of ex parte communication filed with the commission, Connoisseur emphasized, as it has in the past, that over-the-air radio is not an isolated market and competes directly with digital media for local audiences and advertisers.
“Only by achieving scale and securing a stable economic base can over-the-air radio provide the local service that the Commission seeks from all broadcasters,” its legal representation wrote.
Connoisseur grew sizably last year with its acquisition of Alpha Media’s stations. It operates approximately 216 stations in 47 markets, according to its website.
As our Paul McLane had reported in June, Jeff Warshaw, the company’s CEO, met with FCC Chairman Brendan Carr to urge for the removal of local ownership restrictions.
Unfair playing field
Beasley similarly stressed the need to revise local restrictions, as CEO Caroline Beasley had already done last month.
In its ex parte filing, Beasley highlighted growing competition from streaming, podcasts, satellite radio, social media and large digital advertising companies that are not subject to comparable ownership limits.
“As a result, the current rules impair broadcasters’ ability to achieve necessary scale, compete effectively for audiences and advertising revenue, and continue providing local programming and emergency information to their communities,” Beasley wrote.
During the meeting, Beasley also discussed the “significant migration” of advertising revenue to digital platforms with Trusty and Maher.
Beasley’s notice was signed by Chris Ornelas, executive vice president and general counsel.
The company owns 49 radio station across the U.S., according to Wikipedia.
You can read the public comments for the 2022 Quadrennial Review here, enter 22-459 in the Proceedings field.
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