17 years ago(!), I left a budding career in radio journalism out of disgust with the trajectory the industry was taking. The break-point came when the National Association of Broadcasters and National Public Radio teamed up in Congress to conduct a disinformation campaign designed to eviscerate the FCC’s then-newly proposed LPFM radio service.
However, A few months before I actually quit my job, I acquired all the components necessary to start an unlicensed microbroadcast station. “System P” was a 40-watt frequency-agile FM rig that used a portable military surplus antenna mast to conduct tactical broadcasts from a wide variety of locations. You could often hear the station in Madison, Wisconsin, primarily on evenings and weekends; but since the station was mobile much fun was had taking it to peoples’ homes and public events around the country to give the public a more substantive appreciation of the ease by which it could make “the public airwaves” very real.
Another key element of System P was to provide a last-mile node for what was then quite an experiemental webcast-activism scene (today commonly known as “livestreaming”). These often manifested in Independent Media Centers during times of protest, most notably against corporate global trade deals. Activists would converge on a city to fill the streets in order to disrupt the negotiation of these agreements, and the media coverage would invariably skew toward painting the activists as violent thugs and police/other security forces as the guardians of order. But when activists gained the ability to counteract this narrative – oftentimes by live reports from the streets directly – the discursive dynamic around these events changed. Continue reading “Nodes of Resistance: Sampling the Haitian Diaspora via FM+Internet”
How many ways can you keep debt at bay? Does non-payment sound like a viable option? Perhaps not if you’re just a mere flesh-and-blood human, but the corporate beast’s a special class.
Over at iHeartMedia, $250 million of the company’s $20+ billion debt came due last Thursday (December 15). In a surprise move, the company announced two days before that it would only be paying back just $192.9 million of these notes and foregoing the rest.
The reason? This debt constitutes money that various subsidiaries of iHeartMedia owe to each other. In addition, these particular debt instruments contain a provision that, should the total debt held between these entities fall below $500 million, it would trigger a “springing lien.” This is a fancy term for extra payments owed to debtors as an incentive for giving the conglomerate a nice line of credit.
By witholding $57.1 million of these payments, iHeartMedia’s total debt in this instance doesn’t fall below the threshold, and thus the company can avoid making the bonus-payments to creditors. To stymie any objection to this ploy, iHeart went to the friendly Bexar County, Texas courts and filed a flurry of paperwork last Monday (to give you an idea of how complex its debt structure is, there 11 petitions in all, involving six
Clear Channel iHeart subsidiaries), asking a judge to declare this practice kosher. Continue reading “iHeartMedia, Cumulus Go Debt-Offensive”
Borrow $1,000 from the bank, and the bank owns you. Borrow $100 million, and you own the bank. This seems to be the mantra for end-of-year finance-maneuverings in the U.S. radio sector. Three companies in particular are making plays:
Clear Channel iHeartMedia: After beating back a default-notice earlier this year by some creditors to whom the company owes more than $20 billion in debt, run up in the post-1996 consolidation and acquisition-frenzy, another lawsuit filed in Delaware accusing iHeart of playing fast-and-loose with debt-swapping between subsidiaries has been dismissed.
This has emboldened the company to seek a further renegotiation of a portion of its debt-payments. In a statement released late last month, iHeart announced that it’s asked some investors for the flexibility to “amend their terms,” according to the Tom Taylor Now newsletter. If iHeart gets consent, it may attempt to revise the interest rates on these debt-notes, or swap the notes down the road for other debt instruments at more manageable terms. One anonymous watcher tells Tom that if the company is successful, iHeart’s “debt wall,” or the point where the company ceases to be able to make adequate payments on what it owes, might be pushed back “until at least 2018, maybe 2019.” Continue reading “Radio Stocks Spice Books for Year's End”
The closure of Tessera Technologies’ purchase of DTS Inc., the owners of iBiquity’s HD Radio system for just one short year, is set for sometime in December, and the combined companies will adopt a new name and stock symbol on NASDAQ in the new year. But just how much did the HD system itself drive its sale twice in 14 months, and what are the prospects for its future development?
Turns out, not very much on both counts: buried at the bottom of a story published by iHeartMedia-owned Inside Radio in early November was this gem: “DTS had been in sale mode since June 2014 when it was first approached with a $29-$32 per share buyout offer that proved to be too low for the board’s approval. But it set into motion the process that ultimately led financial advisors to shop the company. Tessera first appeared on the radar in August 2015 — two months before DTS bought the HD Radio business from iBiquity — and those discussions continued for months [emphasis added].”
In other words, DTS had put itself up for sale before negotiations began to acquire the United States’ troubled digital radio broadcast platform. And in fact, two months before DTS actually bought iBiquity and the HD system, it had already received acquisition-inquiries from Tessera. At the time, DTS’ board of directors considered the sale-price per-share too low…but what better way to bump that up to a more lucrative level then to acquire some additional intellectual property for the corporate portfolio? Continue reading “HD Radio's Next Bling Things”
The United States is still trying to come to grips that it has elected a proto-fascist as its next chief executive. With the Republican Party in firm control of the legislature and the ability to shape the judiciary for the next several decades, lobbyists of all stripes are drooling at the prospects of a bona-fide kleptocracy.
Of all the things expected to be decimated in the Trump era, media and communications policy are among them. Others have already written about the potential for a GOP-run Trump FCC to undo several years’ worth of media reform efforts, such as network neutrality, media ownership limits, and many other things. We still don’t know who Trump may nominate to chair the Commission, though there’s talk that one of the two sitting GOP Commissioners may get the nod.
Neither will be good: Ajit Pai is a trenchant disciple of neoliberal economic theory, and pretty much sees all regulation as bad regulation; Mike O’Rielly, who helped write the Telecommunications Act of 1996 (though tellingly does not crow about it), is pretty much the same. But O’Rielly’s crusade to eliminate unlicensed broadcasting from the nation’s airwaves has gotten a significant boost with this election. Continue reading “A Trump FCC and Pirate Radio: Prepare for Struggle”
Revisiting a subject from three years ago: the health of U.S. radio by the FCC’s broadcast station totals. Published quarterly, these figures over time show the relative growth of station-classes, and trends especially over the last couple of years are quite eye-opening.
What sparked my interest was a celebratory missive from FCC Media Bureau Chief Bill Lake released last week. Having completed two filing-windows this year allowing AM radio stations to acquire FM translators, Lake says they’ve been a “resounding success” – nearly 1,100 translators changed hands, and the FCC has already signed off on the vast majority of these deals.
The chart above tells the tale, tracking station-counts over the last 25 years. As of this year, FM translator and booster stations now comprise the largest segment of licensed radio stations in the country, both in raw numbers and percentage. Continue reading “Translators Now Constitute the Largest Number of U.S. Radio Stations”
Sad but true: last Friday, the FCC finally responded to my appeal of its denial of my Freedom of Information Act request involving a case in which the agency declared Workers Independent News to not be news.
The dismissal was fairly perfunctory. What I was primarily asking for was the other 5,600+ pages of documentation the agency collected regarding correspondence (both internal and external) and deliberations on the WLS/WIN case (it only released 88 heavily-redacted pages). My primary objective was to discover the identity of the complainant who kicked off this sordid saga, as well as the identities of FCC staff who took the complaint and turned it into libel by official writ. Never before in the history of U.S. broadcast regulation has the FCC made a content determination on the legitimacy of a news organization. Continue reading “FCC to WIN: You're Not News, Get Over It”
Though not by much, and certainly not along the lines of what we saw at the beginning of this decade. August was a busy month for FCC field agents, who conducted nearly three dozen enforcement actions against fewer than half as many stations. The state-leader this year so far is Florida – while New York still leads the all-time pack enforcement action-wise – and the FCC’s flexed its muscle in only seven states, compared to 10 in 2015.
Some of the cases are fairly curious, such as a $15,000 Notice of Apparent Liability issued against a Florida man who first started broadcasting without a license way back in 2013. One visit that year, followed by four visits last year (and a change in frequency), finally compelled the FCC to bring the threat of a fiscal penalty to bear.
Then there’s the case of an Alabama man who first hit the FCC’s radar in 2015; after being warned he voluntarily surrendered his transmitter via mail, only to get a new one and move to a new channel. When contacted again by the federales, he expressed the wish that he could be legal but no application windows for LPFMs are in the works, so his “hands were tied.” Not a good enough excuse to avoid a $15,000 NAL…but then again, it remains to be seen whether the FCC will formalize these as actual forfeitures, much less be able to collect on them. Continue reading “Anti-Pirate Activity Rebounds from 2015 Nadir”
Last month the Pew Research Center published a short report on the growth of the LPFM radio service, following the conclusion of a 10-year legislative battle to expand it back to near the scope originally hoped by the FCC when it was first proposed in 1999-2000.
According to the report, since the passage of the Local Community Radio Act in 2011 and subequent filing windows for new LPFM construction permits, the number of licensed stations has nearly doubled, to more than 1,500 nationwide (including U.S territories and protectorates). Most states have more than 20 LPFM licensees, while California, Florida, and Texas clock in with the most (100+). Continue reading “LPFM Expands…But Translators Still Dominate FM Crumbs”
It came as a surprise to attendees of last week’s NAB Radio Show in Nashville: just a day before the CEO of DTS, the company who bought HD Radio proprietor iBiquity just last year, was to be a featured guest at a convention luncheon, his company was acquired by Tessera Technologies in an $850 million deal.
Who is Tessera? Founded in New York back in 1990, the company initially began as a designer and manufacturer of semiconductor chipsets, including memory modules. It went public on the NASDAQ stock exchange in 2003; five years later it acquired FotoNation, a company devoted to image analysis. Continue reading “HD Radio: Sold…Again”