JSAs

The agenda is out, and the FCC’s likely action on its Quadrennial Review of the multiple ownership rules now seems to be much clearer. And the decision seems likely to follow the rumors circulating in Washington for weeks, with new regulatory wrinkles added to those previously suggested. Among the hot topics: JSAs, SSAs and retransmission consent agreements.

Disregarding all the changes that have roiled the television industry over the four decades since the FCC adopted its ban on owning two TV stations in the same market, FCC Chairman Tom Wheeler now believes that it is absolutely imperative that the FCC buck up the old rule by closing loopholes that broadcasters have been using to get around it.

If a majority of the commission supports his proposal, joint sales agreements and joint TV station retransmission consent negotiations will be banned, effective immediately.

The National Association of Black Owned Broadcasters suggests that rather than outlawing all JSAs and SSA, the FCC should let stations restructure them to guarantee that the operated stations would eventually be transferred to a minority owner or otherwise serve the public interest. If so, they would be given a waiver to operate for some longer period of time, say five years.

Justice’s 18-page filing in support of the FCC’s proposal to kill JSAs is a bloated document that has a slap-dash quality and is notably short on substance. What’s worse, it references comments it made in a similar FCC proceeding in 1997, saying they continue to make a lot of sense. 1997?! That’s 17 years ago. I would say that anything written about media markets in 1997 is totally irrelevant today.

Despite speed bumps from the FCC (plans to kill JSAs and SSAs) and Aereo, many industry observers think the station trading market will heat up, with speculation that possible players include not only the usual suspects (Sinclair and Nexstar) but also Post-Newsweek, LIN, Meredith, Media General, Raycom and Sunbeam.

“The Department [of Justice] believes it is appropriate for the commission’s ownership ‘attribution’ rules to treat any two stations participating in a JSA (or agreement similar in substance to a JSA) as under common ownership,” said DOJ’s antitrust division in a Feb. 20 filing.

In ex parte remarks, it suggests any changes should be made in concert with a broader consideration of broadcast ownership rules.

FCC Commissioner Michael O’Rielly on JSAs and SSAs: “I think it is fair to say that the media marketplace is far more competitive than it was decades ago when the FCC’s media ownership rules were established, or in 2002 … or 2006 when they were last reviewed. That is why I would be perplexed and deeply concerned by a push to abruptly switch gears and tighten the rules as part of a media ownership proceeding. Such a move would conflict with the spirit, intent and wording of the statute. It would also likely harm the public interest if fewer stations could offer local news, especially in smaller communities.”