NJBA Weekly Newsletter, Friday, December 21, 2007

FCC Wants to Re-regulate Radio Back 20 Years

In response to pressure from the FCC, some members of Congress are looking to impose regulations killed 20 years ago in the name of localism. The regulations, if passed, will place new, heavy reporting burdens on radio stations and generate more paper work for the commission. These regulations were discarded by the FCC because the Commission declared that the increasing competition for listeners would cause stations to be as local and serve their communities in order to be competitive. Now, with more outlets including streaming audio, the internet, satellite radio and Multichannel HD radio, the competition is more intense than at the time the FCC declared the rules were no longer needed. Furthermore, nearly everyone in the Communications community was caught off guard and truly surprised by the FCC’s action. Broadcasters, State Associations and the NAB are all gearing up to fight this to the death.  The comment period will start after the proposed regulations appear in the Federal Register.  We will keep you informed.

Bad News Radio Week Continues

Both the Senate and the House have seen new legislation introduced which will require radio stations to pay a performance tax to the record companies for the playing of records over the air. In the house, the bill was introduced by the Congressmen to the stars, California’s Howard Herman and Darrell Issa. Radio has always enjoyed a special relationship with the record companies, promoting records and artists over the air in exchange for playing new records. Now, most of the record companies are located outside of the US, and the measure would take several billion dollars out of the pockets of local broadcasters and send it overseas. The effect would cause local stations to have less money for local service to their listeners. Phil Roberts, President/CEO, has already asked New Jersey Senators Lautenberg and Menendez to not co-sponsor this bill and to vote no if it comes to the Senate Floor. In addition, Our House members are being urged to oppose this legislation. Shortly, NJBA will be calling on our members and their listeners to help defeat this bill.

 Movers & Shakers`

Mega Congrats are in order for NJBA Past President Dan Finn. Dan was just promoted by Greater Media from Vice President/Regional General Manager to Senior Vice President/Regional General Manager for the Greater Media New Jersey properties. In announcing the promotion, GMI’s President/CEO Peter Smyth said, “Dan is a major contributor to the success of Greater Media’s New Jersey based radio operation. It is a privilege to have him on our team”.

Bill Sauer joins Principle Broadcasting Network as President/CEO. The company owns radio stations in Boston, Dallas and Long Island. Previously, Bill was the VP for Millennium Radio Group and was responsible for the companies shore stations.  Good luck Bill! 

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