Media Bureau Loosens Restrictions on Broadcasters During Pandemic

Broadcasters airing free commercials during the COVID-19 pandemic don’t have to factor them into their lowest unit rate for political advertisements, said guidance from the FCC Media Bureau in Thursday's Daily Digest. MB also issued a public notice about COVID-19-related waivers for the percentage of content allowed under sharing agreements. It responds to questions from NAB and broadcasters about the effects of airing free spots for advertisers affected by the pandemic, the bureau said. “Because of current financial difficulties arising from the coronavirus (COVID-19) pandemic, many commercial customers are canceling their advertising contracts,” the lowest unit rate PN said. “To fill excess inventory and build goodwill, broadcasters are seeking to air free advertisements for merchants.” Those free ads don’t need to be factored into lowest unit rate calculations “provided the free time is not associated with an existing commercial contract for paid time or otherwise considered bonus spots,” the bureau said. “We anticipate that this guidance is applicable only to the current period and not necessarily applicable when more ordinary conditions are restored.” Local ownership rules limit to 15% the amount of programming one station can provide for another though local marketing agreements or shared service agreements, but that limit can be waived during the pandemic, MB said. During the COVID-19 national emergency “individual licensees may request temporary waivers of the Local Television Ownership Rule to provide more news coverage.”