[opendtv] Re: Weird local caps rules fallout - Sinclair buys Allbriton stations

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 25 Jul 2014 07:10:47 -0400

> On Jul 24, 2014, at 9:07 PM, "Manfredi, Albert E" 
> <albert.e.manfredi@xxxxxxxxxx> wrote:
> 
> 
> Now Sinclair is the affiliate of two major TV networks and a smaller one, in 
> the same market. Say ABC, Fox, and My Network TV. It simply multicasts the 
> content of the previous Allbritton station on one of its two stations. So, to 
> force the point, perhaps ABC and Fox, transmitted as two subchannels of the 
> same station.

An interesting hypothesis, however, this has not happened as a result of the 
Allbriton deal. The FCC forced the divesture of certain stations and the 
termination of some LMAs in Birmingham and Charleston, as terms for approval of 
the deal. In each case Sinclair winds up with a major network and a second tier 
network on a single multiplex, and another station with a second tier network. 
They do not control two major networks in either market.

Quoting the FCC:
> "Our local TV ownership rule does not restrict the use of multicast 
> capability to form dual affiliations, and in the recently released 2014 
> Quadrennial Review FNPRM & Report and Order, the Commission tentatively 
> concluded that the record did not support changing the ownership rule to 
> restrict such arrangements. Given these facts, we do not find that the 
> multicasting proposal put forth by Sinclair would disserve the public 
> interest."
> 
> Totally weird, right? But it does reduce the amount of RF spectrum needed for 
> TV, in that market.

Multicasts carry a major network and lesser networks in MANY markets. We have 
two such multiplexes here in Gainesville. There are a few very small markets 
where a station has two major networks in a multiplex - Bangor and Presque Isle 
in Maine are examples. 

But Bert raises some interesting issue here with respect to the upcoming 
spectrum consolidation and auctions. In order for the FCC to recover the 
desired amount of spectrum, it will be necessary for many networks to 
consolidate into a single multiplex, or simply go dark. The FCC further 
complicated the situation by cracking down on LMAs, which have been used as an 
end run around the ownership caps.

Clearly something has to give. What is really important here seems to be the 
desire to keep multiple "voices" in every market. Keeping four voices in 
smaller markets is going to be difficult as FOTA broadcasting continues to 
wither in today's highly competitive environment. Add to this the reality that 
the local aspect of the major networks is becoming meaningless to MVPD 
subscribers who rarely watch local news, choosing instead the 24/7 news 
channels or the Internet.

A century ago most markets had multiple voices in the newspaper business - only 
a handful of large markets have multiple daily newspapers today. Consolidation 
in the number of TV voices in a market is inevitable from an economic 
perspective.

Regards
Craig 
 
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