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“The Eve Of Media Madness”: Sinclair-Tribune Deal Nears Key FCC Crossroads

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As a group of Democratic Senators urged a federal investigation of the FCC’s revie..

By admin , in Money , at November 15, 2017

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As a group of Democratic Senators urged a federal investigation of the FCC’s review of Sinclair’s pending acquisition of Tribune Media, former regulator Michael Copps warned of tomorrow’s pivotal FCC meeting, “We are on the eve of media madness.” Ties between the regulatory agency and President Trump are at the center of the fight.

A letter signed by 15 Democratic Senators expressed “strong concerns that the FCC’s ongoing review of the proposed merger of Sinclair Broadcasting and Tribune Media may be tainted by a series of actions and events that raise questions about the independence and impartiality” of the body.

Tomorrow morning in Washington, the FCC’s open meeting stands to have dramatic consequences for local broadcasting as well as digital advertisers. Most of the agenda items are proposed updates to decades-old media ownership rules, which broadcasters say are out of date, for example limits on “cross-ownership” of newspapers and radio and TV properties within the same market.

The result of all of the changes could be a glide path for Sinclair Broadcast Group’s pending acquisition of Tribune Media, a $4 billion deal that would make Sinclair, already the No. 1 local broadcaster, an even bigger behemoth, with stations covering 72% of U.S. households. In addition to the already mammoth scale of such a company, the sharp-elbowed provocations of Sinclair have only raised more hackles. The company has a pronounced tilt to the right, hiring conservative commentators such as former Trump advisor Boris Epshtyn to deliver opinion segments that Sinclair’s 230-plus stations are told are “must-run” pieces of video.

Copps called the FCC meeting “the nadir of the FCC’s credibility as a protector of the public interest.” He added, “We shouldn’t just be focused on one merger. There are going to be a lot more after that. It’s a flashing green light, greener than any before it.”

The ex-commissioner made the comments during a conference call for the press, on which he was joined by Karl Frisch, executive director of Allied Progress, and Craig Aaron, president and CEO of Free Press. Activist groups have vowed to bring lawsuits over the merger and on the call reiterated that option but said any legal offensive would depend on how the FCC meeting unfolds.

Prior to the Senate’s letter, two Democratic Congressmen on Monday brought forward similar charges to the Senators’, further suggesting an untoward degree of co-ordination between the Pai-led FCC and the Trump Administration. Reports of meetings and communications between the White House and Republican FCC members, they wrote, “raised serious concerns about whether Chairman Pai’s actions comply with the FCC’s mandate to be independent.”

Many industry voices have been cheering for the deal. Gordon Smith, president of the National Association of Broadcasters trade group said in a statement that the NAB and “scores of broadcasters” support the rule changes. The shift, he said, has “industry-wide implications with a profound impact that is broader than any one company. For decades, the broadcast industry has asked the FCC to modernize its media ownership rules.”

Another aspect of the rules changes scheduled to be addressed Thursday is “next-generation TV,” which also goes by the geekier moniker ATSC 3.0. Promoted by broadcasters as a critical competitive asset as they battle tech and entertainment giants for consumer’s attention, the standards will introduce greater capacity for data and channel bandwidth, enhancing the viewing experience and also allowing for more sophisticated forms of communication. Of course, advertising is also part of what could change, raising alarms about privacy. Sinclair is one of the loudest champions of ATSC 3.0.

Aaron of Free Press said the swift and sweeping moves of the FCC “should be a national scandal” given Sinclair’s commitment to advancing a pro-Trump agenda. “Putting politics aside,” he went on, “the FCC is fulfilling a longstanding media wish list. … They want to sell this as some sort of Hail Mary for local journalism.”

Copps said the FCC is “marching to the drumbeat of Wall Street expectations and public interest be damned.”

While local broadcasting and digital advertising will dominate the meeting, the larger message the FCC is sending about consolidation should not be overlooked, the activists agreed. With AT&T-Time Warner and potential deals involving Fox, Disney and a host of others likely, “everyone thinks they have to join the arms race,” Frisch said.

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