Bert is excited about the number of channels he can watch in the Baltimore and
Washington DC broadcast multiplexes. But is the future of broadcasting about
"the five hundred channel universe?
Not likely, as appointment TV is increasingly driven by events and big name
shows.
But it appears that there is a big future in broadcast multiplexes via
consolidation.
Of those 50 + channels Bert can watch, many are duplicates, as he can access
signals from two adjacent markets. And many are just filling up space in an
attempt to wring out a few extra commercial dollars from the market.
With the upcoming spectrum auction, it is highly likely that many existing
stations will join forces, putting their primary networks into shared
multiplexes, while returning spectrum to grab a share of the auction proceeds.
Now FCC Chairman Wheeler told a NAB broadcaster audience that the FCC is
loosening up the rules for channel sharing, which is likely to help the
broadcast industry consolidate and share a bigger chunk of the auction proceeds.
More evidence that OTA broadcasting is an oligopoly...
Regards
Craig
http://www.broadcastingcable.com/news/washington/nab-fccs-wheeler-piles-praise-broadcasting/139925
NAB: FCC's Wheeler Piles on Praise for Broadcasting
Related: NAB Show 2015 Complete Coverage
FCC chairman Tom Wheeler came not to bury broadcasters but to praise them,
calling them indispensable for the future as well as the past. In a NAB Show
speech that attempted to hit all the right notes, the chairman talked about
protecting broadcasting from ISP gatekeepers, praised them as the go-to
industry for news and information, and said he wanted to better accommodate
broadcaster participation in the incentive auction.
Confirming a report in B&C, that accommodation includes modifying the auction
framework to make it easier to share channels.
"To provide even more channel sharing flexibility," he told the crowd. "I just
circulated a new set of rules that will allow full power and Class A stations
to select channel sharing partners both before and after the conclusion of the
auction."
"Parties would also be able to enter into channel sharing agreements for fixed
terms. We like channel sharing so much, in fact, that we’re proposing to allow
channel sharing between stations regardless of whether they participate in the
auction next year or not—although those that decide to channel share outside of
the auction context will not be able to collect auction proceeds."
Preston Padden, executive director of the Expanding Opportunities for
Broadcasters Coalition, which petitioned the FCC for those channel sharing
changes, was understandably pleased by Wheeler's announcement of the new rules.
“By greatly liberalizing the channel sharing rules Chairman Wheeler, the
Commissioners and the FCC Staff demonstrate once again that they are
wonderfully responsive to constructive broadcaster input into the auction
rules," Padden told B&C.
But that was not the only goody in Wheeler's bag. He also signaled he thought
the FCC would be able to increase allowable foreign ownership in broadcast
stations above 25%, something broadcasters have said could provide new sources
of capital. The chairman even gave "my friend" (and also often vocal critic)
minority commissioner Michael O'Rielly credit for backing that initiative. He
also cited his just-announced plans to wrap up an AM radio aid package.
While broadcasters will welcome more channel sharing flexibility, NAB and
Sinclair still have a pending lawsuit over other issues. Wheeler downplayed
that, calling it a "bump in the road" and saying that "we are hopeful that the
court will dispose of that suit in a way that will allow both of us to move
forward."
"A possible bump in the road is a certain lawsuit challenging our rules. But
we are hopeful that the court will dispose of that suit in a way that will
allow both of us to move forward."
Wheeler was clearly pleased with the National Association of Broadcasters
increasing focus on members who have a fiduciary responsibility to consider
participating in the auction.
"Not surprisingly, broadcaster interest has gathered significant momentum," he
said, "In addition to the hundreds of broadcasters of all sizes that have
privately expressed interest in the auction, Fox, ION, Tribune, and Univision
have publicly expressed their interest in participating. I am pleased that, as
part of our outreach, we’ve already talked with broadcasters representing
nearly half of the stations eligible for the auction."
Broadcasters and cable operators have been in a pitched battle over
retransmission consent, and Wheeler played on that to try and enlist their
support for his network neutrality rules.
"The Open Internet order safeguards an increasingly important distribution
channel for your most important product – local news and information," he said.
"It assures that your use of the Internet will be free from the risk of
discrimination or hold up by a gatekeeper. Again, I liken this to the concept
behind must carry – updated for the 21st century."
"I know broadcasters have always been concerned about gatekeepers," Wheeler
said. "The must carry rules are a manifestation of that concern. It was that
kind of sensitivity that has led us to focus on maintaining an open Internet.
And now that we have produced an Open Internet Order, I hope that you will see
in it something important to maintaining your service to the American public,
as well as your ability to expand that capability in a continually evolving
network environment."
He suggested broadcasters might want to use their powerful medium to make that
point. "I hope this means that you as individual broadcasters, as well as
through NAB, can support what we have done and help explain its importance to
the principles upon which broadcasting has always been based."
Again and again, Wheeler spoke glowingly of broadcasters and broadcasting,
including the following:
"There can be no question; the public interest is served by a healthy
broadcasting industry with robust reach. Broadcasting is an important part of
our future just as it has been an indispensable part of our past," he said.
"From a historical perspective, over-the-air broadcasting has contributed
immeasurably to providing our uniquely diverse society with a sense of
community, with a sense of shared experience."
"Local TV and radio broadcasters are still the most important source of
breaking news in our cities and neighborhoods. Broadcasters are the first place
we turn in times of emergency."
"Broadcasters also play a critical role in local economies, connecting people
to businesses and commerce like few other mediums can."
"Broadcast TV delivers our most highly watched programming, and events like the
Oscars and Super Bowl still draw huge audiences – providing the moments we come
together to discuss at the water cooler and, now, on Twitter."
Wheeler closed with a pitch for the incentive auction, again calling it a
voluntary once-in-a-lifetime opportunity.
"The auction will be successful only if you are informed and have confidence in
the rules and the process," he said. "That’s why we’re on the road meeting
face-to-face with broadcasters and why we will continue to be available for
your questions. We welcome your input and your involvement in the process of
crafting the rules and policies. We want an auction that is good for consumers
and competition – and that ensures a strong and vibrant broadcast industry."
"Disruptive technologies demand that broadcasters and the FCC re-imagine many
policies and practices. If each of us successfully addresses the opportunities
inherent in the open Internet and the incentive auction, the end result will be
a vibrant over-the-air broadcasting industry well able to fulfill its historic
localism mission and a more competitive multichannel programming marketplace
working for the benefit of American consumers."
