An interesting article in Inside Radio reported on a study released by Borrell, which focused on the purchase of digital and radio ad time. According to the article: “A new survey by Borrell Associates finds 43% of local agencies bought streaming audio and podcast advertising this year, compared to 10% of local businesses that bought the mediums directly.” The article continued: “By comparison, 31% of local businesses surveyed by Borrell said they bought traditional radio during 2023 spending $35,407 on average. But that still trailed what agencies did as 61% reported they bought AM/FM radio for their local clients.” You can see the complete analysis in Inside Radio here.

The FCC continues to take enforcement actions against illegal radio stations operating in New York. This time, it involved illegal stations operating in Brooklyn and Scarsdale. Under the PIRATE Act, land and building owners may be held liable for allowing illegal radio stations to operate on their property. The FCC notified property owners in: Scarsdale, NY:  Illegal station operating on 90.9 FM. Brooklyn, NY – Illegal station operating on 107.9 FM. The FCC informed each landowner that under the PIRATE Act, a landowner may face a fine of up to $2.3 million for allowing an illegal pirate radio station to operate on their property. We applaud the FCC’s continued efforts to eliminate illegal radio stations in New York. You can see the Scarsdale Notice here. You can see the Brooklyn notice here.

Almost 20 years ago, the FCC suspended the collection of annual data detailing the race, ethnicity, and job function of broadcast station employees. The primary constitutional concern about collecting the data on Form 395B was that it could be used to penalize stations for not meeting specific racial or gender quotas. This issue has remained. It is not clear why the FCC would collect the information without using it for enforcement. History is about to repeat itself. A number of Congressmen and FCC Commissioner Starks are now asking the FCC to reinstate Form 395 B. There appears to be support for reinstatement, and CC Chairwoman Jessica Rosenworcel may be taking steps to reinstate the data collection. You can see the letter from members of Congress here. View the comments of FCC Commissioner Geoffrey Starks here. You can access the FCC Press Release regarding the letters from Congress here.

The staff at NYSBA wishes you joy and peace this holiday season. Let’s take the time to reflect on the blessings and liberty we enjoy in this great country. While the office remains open, Newstream will take a rest and return on Tuesday, January 9, 2024. Happy Holidays.

It’s that time of year when we’re all thinking about our New Year’s Resolutions, and we know you’ve got some big goals for 2024. Get a kick start on those goals by registering for the 2024 Rising Above: A Virtual Sales & Management Summit. Unlock Expert Sales and Leadership Strategies: Gain insights from multiple perspectives to enhance your sales and leadership strategies and propel your success. Interactive Q&A Sessions: Engage with expert trainers in real time and get your questions answered. Virtual Convenience: Watch from anywhere with streaming services available on the Ten-Minute Trainer Network for your PC, Tablet, Apple, and Android! This conference is offered to NYSBA members in good standing free of charge. You can see the conference schedule and speakers for each day here. Register in advance for the conference here.

An interesting article appeared in Jacobs Media Strategies regarding how listeners consume radio. The good news is that most listeners rely on traditional AM/FM radios to receive radio content. Citing a study by FMR/Eastland, the article noted: “The research shows that in America's biggest markets, two-thirds (66%) of radio listening is taking place on good old AM/FM receivers. Presumably, the remainder is being done digitally – on computers, mobile phones/apps, and smart speakers.” This number is also supported by a Jacobs Media study that indicated 58% of listening in through the traditional AM/FM receiver. However, a word of caution is in order. While listening via a traditional AM/FM receiver still dominates, Jacobs reports that the long-term trend has been to see an increase in listening on digital media. According to Jacobs Media: “Yes, AM/FM is still in the lead, but the trends have dramatically moved in the digital direction.  If you're a traditional broadcaster who's been slow to adapt, you might read the FMR/Eastland headline as a sign that perhaps the transformation away from AM/FM receivers is moving slower than the naysayers suggest.  On the surface, their one-time “screen cap” of 2023 listening in major markets gives a sense that “regular radio” listening is hanging in there.  I'm not suggesting their data is purposely misleading because it's not.  But trending provides perspective, and most radio broadcasters need that now.” Whether this trend will continue is uncertain. However, stations must be ready if this trend continues. You can see the full analysis in Jacobs Media Strategies here.

The New York State Broadcasters Association will again offer our highly acclaimed internship program to member stations in 2024. The program has proven to be an exceptional recruiting tool for our member stations. It also introduces the next generation to the broadcasting business. Under the internship program, stations select their interns and pay them at the minimum wage rate during the internship. NYSBA then reimburses the station (Stations must meet the program requirements). A local station or local station cluster may have up to 6 interns per year. The internship program is for NYSBA members in good standing. If your station wants to participate in the internship program, please complete the application form and return it to Sandy Messineo at sandy@nysbroadcasters.org. Stations may apply for interns throughout the year. You can see the application form here. Visit the internship page on our website here.

The Broadcasters Foundation of America is launching a social media campaign on Monday, December 15, with ‘12 Days of Giving’. Each day will feature a different message, ranging from thank-you notes from grant recipients to positive statements about radio, television, and charitable giving. “We need to reach radio and television professionals across every channel at our disposal,” said Tim McCarthy, President of the Broadcasters Foundation. ‘The 12 Days of Giving Social Media Campaign’ is a great way to raise funds and awareness of our mission, especially among junior-level people in broadcasting.” The Broadcaster’s Foundation has made reaching junior and up-and-coming professionals in broadcasting a priority this year with Media Mixers in New York and Chicago. Media Mixers bring together top-level executives with professionals new to broadcasting in a fun and relaxed environment. More Media Mixers will be announced in 2024. The Broadcaster’s Foundation has distributed more than $15 million in aid over the past 20 years. This year, the Foundation will award approximately $1.8 million. More information about the Broadcasters Foundation, including how to make a donation or apply for aid, is available here. You can contact them at 212-373-8250 or info@thebfoa.org. About the Broadcasters Foundation of America: The mission of the Broadcasters Foundation of America is to improve the quality of life for men and women in the radio and television broadcast profession who find themselves in acute need. The Foundation reaches out across the country to identify and provide an anonymous safety net in cases of critical illness, accident, and other serious misfortune. The Broadcasters Foundation of America is a 501(c)3 Public Charity and has received 4 stars from Charity Navigator, its highest rating, and a Gold Seal of Transparency from Candid/Guidestar.

In a recent article in Inside Radio, BIA Advisory Services reported on three ad categories that are expected to do well this holiday season. These are jewelry, restaurants, and movies. In describing the trend, BIA stated: “The most important change and trend that we have seen develop and deepen during 2023 is the shift in consumer spending from ‘material to ‘experiential,’” says Nicole Ovadia, VP of Forecasting at BIA Advisory Services. Despite inflation, credit card debt is up for the average American household, driven by a post-pandemic desire for memory-making experiences. Says Ovadia, “Consumers are not willing to go into debt for just anything – they want an experience to remember, and they are willing to splurge for it.” You can see BIA’s analysis in Inside Radio here.

Working in broadcasting is one of the most exciting and fulfilling career paths imaginable. You can make a difference in your local community by keeping people informed on current events, bringing them live sports, highlighting local businesses, and curating genre-specific music shows. It’s a profession with a great deal of humanity. NYSBA wants to encourage the next generation to enter the profession. Just send us a video describing why you enjoy working in local broadcasting. If we select and use your video for our college outreach campaign, we will send you a check for $1,000 (One Thousand Dollars). Payment will be limited only to those videos actually used by NYSBA. Videos will be placed on our website and our social media platforms. The decision to use your video rests solely with NYSBA, and all decisions are final. You must be employed by a radio or television station that is a NYSBA member in good standing and licensed by the FCC to a community in New York State. All submitted videos become the property of NYSBA. Selected applicants will be asked to provide written permission for us to use the video as a condition for receiving payment. Feel free to create the video using professional equipment or even the camera on your mobile phone. The deadline for submitting videos is January 30, 2024. Submission Guidelines Minimum 30-second video. Film the video vertically. Introduce yourself. Specify which area of broadcasting you work in (on air, production, videography, sales, engineering, etc.) How you got started in the field Where you went to college (if applicable) Did you complete an internship? What a typical day is like. Why you enjoy your career/what it offers you. Please send video submissions to telmendorf@nysbroadcasters.org We are happy to answer any questions you may have.

On November 29, David Oxenford of the DC law firm Wilkinson Barker Knauer, LLP moderated a political advertising rules webinar with the FCC’s Office of Political Programming. The hour and forty-five-minute session provided a refresher on the essential rules for political advertising during the upcoming. Given the predictions that 2024 might be the biggest year ever for political advertising, the information from the webinar is essential to every TV and radio station in the state. NYSBA worked with the Michigan State Broadcasters Association to provide the webinar to members in good standing. Thank you to everyone who attended the webinar. A recording of the webinar is available here. The slide deck from the webinar can be downloaded here.

An interesting article appeared in last week's Inside Radio regarding the profitability of podcasts and digital media. Reporting on a study by Borrell, the article noted: “Growing digital revenue has been a top radio industry priority for years. And while those efforts are paying topline dividends, there has been no significant research to date into the profitability of digital revenue. A new survey conducted by Borrell Associates with the Media Financial Management Association shines a light into the digital profitability abyss. Survey respondents, about half (48%) of which were from radio and TV companies, reported robust digital profit margins. The average EBITDA margin clocked in at 32.8% while the gross margin was 41.5%.” You can see the complete story on the Inside Radio website here.

The Copyright Royalty Board issued two notices concerning a cost-of-living increase in fees. The current rates have been in place since 2021. The cost of living increases are part of the CRB’s initial decision for the 2021 to 2025 period. The increases will affect broadcasters as follows. The first notice deals with the cost of living increases for online webcasters, including broadcasters that stream programming online or through a mobile app. These fees are paid to Sound Exchange and will increase to $.0025 per performance starting on January 1, 2024. The 20203 fee was $.0024. The second increase concerns non-commercial college and high school radio stations that are not affiliated with NPR or CPB. The yearly fees for SESAC and GMR will increase to $194 in 2024, up from $188 in 2023. You can see the notice regarding Sound Exchange here. You can see the notice regarding increases to college and high school radio stations here. You can see a full discussion of these royalty issues from noted communications Attorney David Oxenford here.

Mark Levy is retiring - be ready for a candid, informative, not politically correct, and challenging time together! Mark will reveal his thoughts on what is required of broadcasters to excel in the future, and there will be several surprises to make you rethink and redirect how you go to market. Mark‘s insights are always valuable to every broadcaster who hears his presentations! Mark Levy is the former GM of numerous broadcast companies, the VP of Sales for the RAB, and the past President of Revenue Development Resources. Mark is one of the most in-demand public speakers, leadership coaches, sales and management trainers, and business development consultants in the U.S. and abroad. He has over forty years of expertise and experience in solving problems and making money for radio and TV broadcasters, managers, sales executives, and their local advertisers. Mark has been a frequent contributor to the LBS Video Training Series, served as lead instructor for the Florida A&M NAB Education Foundation Media Sales Institute, and has been a guest instructor for the NABEF’s Executive Development Seminar. This is a must-attend event as you forge your way toward success in 2024! This webinar is offered to NYSBA members in good standing free of charge. You must register in advance here.

If you have not paid your FCC regulatory fees for 2023, you should do so. In the extreme case, the FCC will revoke your license. In Texas, an AM station failed to timely pay all of its regulatory fees for FYs 2012, 2015, 2016, 2017, 2018, 2019, 2020, and 2021. It also failed to respond to FCC orders requesting payment. As a result, the license was revoked. Importantly, as the fees are owed to the government, the station must still pay the delinquent fees even though the license has been revoked. It is a double loss for the station. So, make sure you pay your regulatory fees. You can see the FCC’s decision here.

The FCC issued a reminder for TV stations in Markets 91 to 100. The FCC’s current audio description requirements only apply to the top 90 DMAs. The rules will be extended to DMAs 91-100 beginning on January 1, 2024. The FCC has now expanded the audio description requirements to DMAs 101-210. This is set to begin with DMAs 101-110 on January 1, 2025. Ten markets will then be phased in every year, ending with DMAs 201-210 on January 1, 2035. You can see the most recent FCC Notice here. You can See NYSBA’s analysis of the timing for NY Markets here.

As noted earlier, the FCC rules require stations to implement an EAS system in which priority is given to emergency messages received through IPAWS/CAP as opposed to the traditional EAS system. If the message is received through the traditional EAS system first, the station is required to wait at least 10 seconds for the system to receive the message through IPAWS/CAP. If it does not receive the IPAWS/CAP message, it can broadcast the alert message received through the traditional EAS system. The deadline for compliance is December 12th. Because of issues with SAGE Equipment, the FCC just granted a 90-day extension. The FCC stated: “We provide an additional 90 days for compliance with Section 11.55(c)(2) only to those EAS Participants that are customers of Sage and thus affected by the delay in delivery of the firmware update.  The Extension Request does not provide a basis for granting a blanket waiver to all EAS Participants, nor do we believe it would serve the public interest to extend the deadline where circumstances do not warrant it.  Accordingly, we expect all other EAS Participants to comply with the December 12, 2023, deadline.” Again, this extension applies only to those stations with SAGE Equipment. All other stations must install equipment prioritizing alert messages that come through the IPAWS/CAP system by December 12th. You can see a copy of the FCC’s decision here.

Broadcasters are used to providing sponsorship IDs for broadcast commercials. This is just a reminder that if you are using influencers on your podcasts or social media platforms, the Federal Trade Commission (FTC) requires that you provide information about the relationship between the influencer and the brand they are marketing. Last June, the FTC issued a new set of regulations governing endorsements. The FTC has noted: “If you endorse a product through social media, your endorsement message should make it obvious when you have a relationship (“material connection”) with the brand. A “material connection” to the brand includes a personal, family, or employment relationship or a financial relationship – such as the brand paying you or giving you free or discounted products or services. Telling your followers about these kinds of relationships is important because it helps keep your recommendations honest and truthful, and it allows people to weigh the value of your endorsements. As an influencer, it’s your responsibility to make these disclosures, to be familiar with the Endorsement Guides, and to comply with laws against deceptive ads. Don’t rely on others to do it for you.” According to an article in Inside Radio, the FTC has ramped up its enforcement and issued a warning. “The FTC targeted social media posts that the American Beverage Association, whose members include Coca-Cola and PepsiCo, and the Canadian Sugar Institute sponsored but whose posts by the influencers failed to adequately disclose as sponsored content.” The FTC’s rules would apply to a station’s digital podcasts where the influencer has received a benefit from the brand or product. However, they would also apply if an influencer discussed a product on the air as part of a “live read.” If the influencer, e.g., DJ, is receiving some form of compensation directly from the advertisers, it must be disclosed. Of course, the obligation is on the influencer. Alternatively, if the station (not the influencer) is paid to broadcast a “live read” advertisement, then under FCC rules, it needs to be clear from the context of the live read that this is a sponsored advertisement. Stations should be aware the FTC is focusing on this issue and should be careful with “live read” advertising for a product or brand. You can access the FTC’s general requirements here. You can access a brochure outlining the regulations here. You can access the FTC’s detailed guidelines here. A good article outlining the issue in Inside Radio can be found here.

Recently, Chairwoman Jessica Rosenworcel announced that the Commission is considering issuing a Notice of Proposed Rulemaking, which proposes changes that will impact the processing of applications. The FCC proposes to prioritize the review of station applications seeking approval for license renewal and assignments or transfers of control when those applications are submitted by broadcasters that provide locally originated programming. The proposal is intended to support and incentivize local journalism by rewarding broadcasters’ commitment to meeting the needs and interests of their local communities. It is an interesting concept, and we are waiting to see a draft of the proposal. A similar concept existed years ago. The FCC had specific quantitative guidelines governing the amount of news and local programming provided by stations. Stations meeting the quantitative guidelines could get renewals approved by the Media Bureau. Those that did not meet the requirements would have renewal applications reviewed by the full FCC, thereby delaying approval. To meet the guidelines, stations were required to submit lengthy program logs and performance data.   This process was eliminated for radio in 1979 and for television in 1984. In its place, stations were required to place a quarterly issues programs list in their public file. There are several questions to be answered. First, how does prioritizing renewal or transfer applications promote local journalism? Second, will the FCC reinstitute burdensome quantitative programming “guidelines.” The paperwork burdens imposed on stations could add additional regulatory costs that harm the financing of local journalism. We will keep an open mind but believe that we should avoid a “Back to the Future” regulatory regime. You can see Chairwoman Rosenworcel’s press release here.

Long-time Buffalo Congressman Brian Higgins has announced that he is leaving Congress in February of 2024. He has served in Congress since 2005. He currently serves on the House Ways and Means Committee as well as the House Budget Committee. Higgins, whose district borders Southern Ontario, is Co-Chair of the Northern Border Caucus and the Canada-US Inter-Parliamentary Group. He is also a long-time Co-Chair of the Bipartisan Cancer Caucus and a member of the Great Lakes Task Force. In his press release, Congressman Higgins stated: “I’ve always been a little impatient, and that trait has helped us deliver remarkable progress for this community. But the pace in Washington, D.C. can be slow and frustrating, especially this year. Therefore, after thoughtful consideration, I have made the difficult decision to leave Congress and explore other ways I can build up and serve Buffalo and Western New York." Congressman Higgins has always been generous with this time, meeting with us on numerous occasions. He did great work for Buffalo, especially in revitalizing the waterfront. However, in recent years, he refrained from co-sponsoring the Local Radio Freedom Act and the AM Radio For Every Vehicle Act. His departure will leave an open seat in Buffalo. We expect the announcement for a special election soon. You can see his press release here.