Monty Tayloe

The FCC will begin accepting applications Tuesday for TV stations to transition to ATSC 3.0, said a Media Bureau public notice Thursday. Though the commission’s ATSC 3.0 order was approved in November 2017, broadcasters have been waiting for the agency to create a form and process in the FCC’s license management system (LMS) for the transition.

Grant Bryan Broadcasting’s petition for the FCC to allow AM stations to voluntarily transition to all-digital HD radio, commented NAB, posted Friday in RM-11836. “We agree with the Petitioner that all-digital AM service will allow broadcasters to provide substantially improved sound quality that could help AM stations to retain and attract listeners in the increasingly competitive audio marketplace.” There's broad support for the proposal among broadcasters, NAB said. The FCC should provide an incentive for AM stations to make the jump since HD Radio receiver penetration hasn’t reached 50 percent in any market, said engineering consulting firm Communications Technologies Inc. “Promptly” issue an NPRM on allowing a transition “on a voluntary basis under an expedited, simplified elective process,” said the California and Missouri broadcasters associations. Transmitting using all-digital MA3 mode as the petition suggests would help AM “achieve aural and visual parity with other services found in vehicle entertainment systems,” said Hubbard Radio.

Broadcasters should keep an open mind about how ATSC 3.0 will be monetized, said Nexstar CEO Perry Sook at a Media Institute lunch Tuesday. Responding to a question about whether he thinks 3.0 chips will make it into smartphones, Sook compared ancillary use of broadcast spectrum to landowners in his home state of Texas profiting on their mineral rights. It took years to develop techniques to extract oil from shale, and it could take many attempts to figure out the future of the new standard, he said. “We believe the flexibility of the platform will enable broadcasters to provide future services not conceived today,” Sook said. NAB later posted his remarks.

LAS VEGAS -- Antitrust Division Chief Makan Delrahim said DOJ's view of broadcaster sharing agreements hadn't changed. He indicated such arrangements are being investigated, in a Q&A at the NAB Show Monday with NAB CEO Gordon Smith. The FCC Media Bureau meantime will "hopefully" release a form to allow broadcasters to transition to ATSC 3.0 before June, Chief Michelle Carey told us. Broadcasters have been waiting for that paperwork (see 1904070001).

The FCC lacks authority to expand video description requirements to IP-delivered video and should be cautious about expanding the markets in which it's required, NAB commented, posted in docket 11-43 Tuesday. Comments are intended to inform an Oct. 8 report to Congress required of the agency by the 21st Century Communications and Video Accessibility Act. Expanding requirements beyond the top 60 markets could be burdensome for broadcasters since revenue in such markets is lower, NAB said. “If the Internet is used to carry live terrestrial broadcast television, the Commission should have jurisdiction under the CVAA to regulate such program delivery systems,” the American Council for the Blind said. The FCC should establish a clear stance toward accessibility requirements as video and broadcast technologies evolve, the ACB said. It said the FCC should work with industry groups to create a centralized list of described programming. “Such a centralized list will also greatly assist in assuring that covered networks under the CVAA are meeting their required mandate of 87.5 quarterly hours of described content,” ACB said. ACB and NCTA raised concern over technical limitations of providing audio description over the secondary audio program channel, where it sometimes conflicts with foreign-language translations on legacy content. “Industry is aware of the interest in facilitating greater and easier access to video described programming to avoid conflicts with foreign language programming that may occupy this same audio stream, and is working to achieve that end,” NCTA said. “Cable operators are offering more than two audio streams where it is feasible.” The FCC should consider that proposed changes to kidvid rules could affect availability of described content, programmer Litton Entertainment said. Litton opposed FCC-proposed relaxation of kidvid requirements.

First steps in the ATSC 3.0 switch could be delayed by lack of an FCC license application form for the new standard, said Spectrum Consortium President John Hane at America's Public Television Stations Summit Tuesday, responding to our questions. SpectrumCo has over a dozen markets that could begin to transition by late summer, but that's unlikely if the document isn't released in the next few months, Hane said.

Telecom equipment provider CommScope's purchase of consumer electronics company Arris for about $7.4 billion is expected to face smooth regulatory sailing. CommScope is getting a $1 billion minority ownership investment assist from the Carlyle Group, which used to own a stake, the equipment maker announced Thursday. CommScope CEO Eddie Edwards said the deal would position the two companies to take advantage of the rise of 5G and the IoT. Edwards will remain chief of the combined company (see the personals section).

Lack of a final decision from Chief Administrative Law Judge Richard Sippel on the Sinclair/Tribune hearing designation order won't slow or affect Sinclair merger and acquisition efforts, CEO Chris Ripley told us after speaking at NAB Show New York Thursday. Sinclair is “focused” on more consolidation in broadcast TV, and on adjacent growth avenues such as regional sports networks, cable and digital offerings, Ripley said.

Radio faces increased competition from digital sources for ad dollars and little financial growth, Wells Fargo analyst Davis Hebert said Wednesday on a finance panel at the NAB Radio Show. “Radio has slightly underperformed” in grabbing its share of ad spending since the recession, Hebert said: “The reality is digital is taking its share.” Radio could perform better going forward because media consumption and consumer use of audio through podcasts and smart speakers are on the rise, he said. “The audio pie is growing,” he said. All the panelists noted the growing use of smart speakers and podcast listenership as important opportunities for radio. Smart speakers are “the new battleground,” said Townsquare CEO Dhruv Prasad. Hubbard CEO Ginny Morris said Hubbard is investing “deeply” in podcasting and said radio should gain a foothold in smart speakers now to prepare for the migration of smart speakers to car dashboards. Fewer people are buying radios, Prasad said. “We've got to win and make sure our content cuts through the noise.”

With Phase 1 of the incentive auction TV channel repacking beginning Friday (see 1809100033) and many TV channel changes imminent, the FCC, NAB and broadcasters are working on strategies to get the word to viewers. Efforts range from TV spots starring Dr. Phil to interactive websites to physical handouts at electronics stores. Congress included $50 million in its latest repacking reimbursement legislation for consumer education. Some broadcasters and industry officials worry nonetheless about whether the message will get out in time.