Leahy, Hatch Stump for Retrans, Broadcaster Spectrum Rights

Leahy offered an endorsement for retrans consent that is bound to resonate as his committee endeavors to reauthorize STELA this session: “TV broadcasters deserve to be compensated when their content is used by other corporations,” the Senate president pro tempore said. Leahy said he personally understands the importance of the role that broadcasters play in communicating emergency information to local communities around the nation. “Your stations can and often do change lives,” he said. “I saw it in my home state of Vermont in 2011” when Hurricane Irene devastated some local communities, he said. “Because the stations gave advanced notice, lives were saved.” Leahy said lawmakers should “pursue policies that help alleviate the spectrum crunch our country is facing” but said “no station should be forced to give up its right to spectrum without its consent and without fair compensation.”

Hatch said it’s “hard to gauge” what policy changes will be included when lawmakers take up reauthorization of STELA. He said a “clean and simple” STELA reauthorization bill is “likely the easiest path” but he wouldn’t be surprised if there are “some extensions.” “There will likely be proposals to change [the] retransmission consent system … and proposals to prevent signal blackouts in pricing disputes. These and other issues are certain to be debated over the next 22 months.” Hatch said he’s closely following the FCC’s spectrum reallocation effort and said he supports spectrum auctions that are “truly voluntary.” “I understand the push for spectrum efficiencies but no action should degrade or interfere with broadcast signals.”

Recent efforts to change royalty rates for one segment of the music industry “may not be warranted,” Hatch said, saying it would be preferable to have comprehensive royalty rates for all forms of music. “The issue is far too complicated to be considered in piecemeal fashion,” he said. Hatch said he wanted to make sure that terrestrial radio remains “competitive” and said he was “optimistic” about the recent marketplace agreements made by industry stakeholders like Clear Channel, Entercom and Big Machine.

Rep. Gene Green, D-Texas, said he too supports the retransmission consent process created by the Cable Act. “It is a business negotiation today and that is the way it should be,” he said in a separate speech at the event. “I would say to both sides that you need to be reasonable.” Green said he will “fight to the end” to ensure that broadcasters aren’t forced to give up their spectrum as a part of the upcoming spectrum incentive auctions. “We need to free up spectrum for cellphones but we need to have it voluntarily done,” he said. “The law is clear that the FCC is not allowed to take spectrum from broadcasters … and broadcasters must be held harmless in terms of repacking,” he said.

Green said some radio stations would not survive if recent congressional efforts successfully levy a “performance tax” on broadcasters. “What would happen with that is that it would make some of our markets just not sustainable,” he said. Earlier this month Green reintroduced his Local Radio Freedom Act (H.Con. Res. 16) that would clarify Congress’s opposition to any new charges for radio stations that play recorded music.

Rosenworcel lamented the “sad state” of minority media ownership and said the most important thing that could happen is a reinstatement of the minority tax certificate. “Congress took it away; I think that is regrettable. It was the single most effective way of ensuring broadcast diversity,” she said. She acknowledged that the program became subject to abuses by some but said “that doesn’t mean we can’t create a new law that minimizes the potential for abuse.” Commissioner Pai said he’s “still bullish about the future of broadcasting on AM/FM radio and TV. If there is something we can do to help that segment of broadcasting we should do it.” Pai said he would like to get terrestrial radio on his cellphone “particularly for public safety” reasons.