The FCC’s Enforcement Bureau is regularly making waves in the agency’s Daily Digest now, issuing slews of warning-letters to unlicensed broadcasters nearly every week. Interestingly, these letters are typically grouped by location: one week it’s a passel of pirates “caught” broadcasting in the New York metropolitan area, the next a bunch of folks in South Florida, etc.
The agency, and radio industry, have long described the enforcement process as “whack-a-mole” in reference to the carny game where you score points bashing plastic rodents with a mallet, who pop up and disappear often before you can bring the hammer down. It’s an apt description…but the agency’s most recent enforcement-activites vividly demonstrate just how devoid the process is of deterrent value.
In an update to the Enforcement Action Database earlier this month, I highlighted the case of Kacy Rankine. He’s a New Jersey-based unlicensed broadcaster who first appeared on the FCC’s radar way back in 2005. That year he received a slew of station-visits and warning-letters from the federales, but to no avail, so the FCC ended up fining him $10,000 in 2007.
It’s highly unlikely that fine was ever paid, because Rankine was noticed again this year (a full decade later) running another station in another New Jersey community. The FCC, which apparently doesn’t keep a logically comprehensive record of its own regarding prior enforcement actions and lacks a semblance of institutional memory on this issue, simply restarted the enforcement process with Rankine, issuing him a warning letter last month. Continue reading “FCC Whacks Zombie-Moles”
Month: September 2017
Big-Fish Radio Capital Shaky in 2017
The second fiscal quarter’s come and gone, so it’s worth reviewing how the first half of the year’s played out for radio’s big-fish investment-games:
Clear Channel iHeartMedia: The #1 radio conglomerate in the country just extended its long-term debt refinancing offer to reluctant bondholders for the twelfth time. While going through those motions a key coalition of creditors — who hold more than 10% of iHeart’s $20+ billion debt – have been mulling over the implications of tipping the company into Chapter 11 bankruptcy.
Apparently, they’ve devised a plan by which if they’re given 49% of the company’s equity and more favorable debt-repayment terms, they’ll keep the debt-refinance shuffle going. After missing a full payment in 2016 the company ponied up on schedule this summer toward debt due in 2021. More than $8 billion comes due in 2019. Continue reading “Big-Fish Radio Capital Shaky in 2017”
Paper Tiger Apes Big Bad Wolf
The FCC’s taking a cue from the Three Little Pigs, huffing and puffing about the work it’s doing to combat the “problem” of pirate radio. Just in time for the National Association of Broadcasters’ annual Radio Show in Austin, the FCC’s gone on an enforcement spree of sorts over the last month or two.
With 158 enforcement actions on the books at the end of August, the agency is now on pace to meet or exceed the number of actions it took against unlicensed stations in 2016. For the eight years we’ve experienced of this decade so far, 2017’s enforcement-trajectory seems on target to rank as third or fourth-busiest.
Field agents have traveled far beyond the most popularly-recognized East Coast “hotspots” this summer. Arkansas gets on the board for the first time in the history of our Enforcement Action Database, while the closure of the Seattle FCC field office made it San Francisco and Los Angeles-based agents’ responsibility to visit Alaska in pursuit of a Baptist church – the first time since 2013 that the FCC’s made waves there. (Alaska is the 36th most active U.S. state/territory for pirate radio, just behind FCC Chairman Ajit Pai’s home state of Kansas.) Continue reading “Paper Tiger Apes Big Bad Wolf”