As previously noted, Governor Hochul’s Budget did not include any advertising or digital taxes. Nonetheless, there were a number of proposals that were added to the budget process that could have a negative impact on local broadcasters. Food Product Advertising (S. 213B): This bill was included in the Senate’s budget proposal. It passed the Senate last year and again this year. If enacted, it would create a significant litigation risk for any food product advertising in NY. We successfully removed the proposal from the budget. We will continue to oppose the legislation in the Assembly. You can see a text of S.213B here. Child Data Privacy (S.7695): This is a very complex bill that limits the collection of data from minors, i.e., people under 18 years of age. This could impact your online platforms, websites, and social media platforms. At this point, it is out of the budget, but we will have to address this during the regular legislative session, which ends in mid-June. You can see a text of S.7695A here. Safe for Kids Act (S.7694): Legislation would regulate “addictive” algorithms for “user-generated” digital and social media platforms (e.g., Facebook, Instagram, TikTok). It would not apply to most station websites, as they are not primarily “user-generated.” However, it could impact some companies. At this point, it is out of the budget process. We will have to address this later in the session. You can see a text of S.7694 here. Unfair & Deceptive Acts or Practices: The Governor and Senate proposed legislation (Part JJ of S.8808A) that would expand liability. Today, this is a consumer law that allows cases to be brought by the Attorney General. The legislation changes the law and allows a direct private right of action. Also, it would permit business-to-business lawsuits. Finally, it would add a new component, and permit lawsuits if a business engaged in “abusive” practices. This is a new legal concept as only two states permit such lawsuits. The New York Business Council strongly opposes the bill. We agree. Because of the intense opposition, it has been taken out of the budget. There has been no final decision. You can see a text of the legislation on page 120 here. Payroll Tax Credit for Journalists (SB 8309): We have been working to enact a NY payroll credit for journalists. Working with the NY News Publishers Association, legislation was introduced in the Senate and Assembly.  The Senate’s leadership changed the bill. It limited the credit to media companies with a maximum of 100 employees. This approach would exclude a number of the larger radio and TV stations in NYC. The Governor’s office wants to exclude companies that are “publicly traded.” This would exclude many radio and TV stations across the state. There is a long way to go on this issue. As we go to press, it is being debated.

NYSBA partnered with the Buffalo Broadcasters Association on April 13th for a career fair. The event was held at the facilities of WNED in Buffalo.  The event was very well attended and all accounts were very successful. A special “THANK YOU” to NYSBA members who appeared on a panel to discuss their highly successful careers in broadcasting: Aaron Mason, Sr. News Director, WKBW-TV, Buffalo Patrick McMahon, Digital Managing Editor, Townsquare Media Buffalo Edward Buttaccio, News Director, 13 WHAM TV (ABC), Rochester Jason Ferguson, Sr. Account Executive, Chadwick Bay Broadcasting (WDOE), Dunkirk We also want to thank Stephen Monaco, President of the Buffalo Broadcasters Association, for organizing and managing a truly wonderful event.

As noted previously, the FCC has stepped up its enforcement of illegal “pirate” radio operations. While many of the illegal operations are in New York City, there are a number of illegal operations in other parts of New York. Recently, the FCC issued a Notice of Illegal Pirate Radio Broadcasting to a property owner in Poughkeepsie. Under the Pirate Act, landowners may be liable for allowing illegal pirate stations to operate on their property. The FCC’s enforcement Bureau recently sent a notice to a property owner in Poughkeepsie. “The New York Office of the Federal Communications Commission’s (FCC) Enforcement Bureau is investigating a complaint about an unlicensed FM broadcast station operating on frequency 87.9 MHz.  On September 26, 2023, agents from the New York Office confirmed by direction finding techniques that radio signals on the frequency 87.9 MHz were emanating from the property at {[ ]} Albert Road, Poughkeepsie, New York 12603 (Property).  Publicly available records identify Keiwan F. Morrison and Shadae S. Bailey as the owners of the Property.  The FCC’s records show no license issued for operation of a radio broadcast station on 87.9 MHz at this location.” We applaud the FCC’s approach to rounding up illegal pirate stations. In general, pirate stations may pose a risk of interference with airport communications and the Emergency Alert Service. You can see the Enforcement Bureaus Notice of Illegal Pirate Radio Broadcasting here.

Inside Radio reported the results of a recent analysis prepared by the National Auto Dealers Association (NADA). According to the article, digital advertising increased significantly, but radio’s share also increased to a level nearly the same as TV. “NADA estimates the typical new car dealership spent $528,923 on advertising last year.  Radio’s share of that total averaged $50,248 – up from $39,730 in 2022.  And it is not far behind the $52,892 spent on local TV.  Radio also receives about twice what is spent on direct mail campaigns by local dealers, and nearly five-times what is spent on local newspaper advertising.” You can see the complete analysis in Inside Radio here.

We are working on three NY “AI” political bills (S.8631, A.7106B, S6638B) that are not in the budget. These bills would require stations to label political ads that contain AI. Because you cannot readily detect AI, the obligations must be placed on the creator of the ads, not the broadcasters. Moreover, federal law prohibits a station from editing a political advertisement received from a candidate’s campaign committee. This includes adding a label. We oppose the bills as drafted. We have meetings this week and will report back. You can see the text of S 8631/A9816 here. You can see the text of A7106B/S6638B here.

We are pleased to report that Rep. Pat Ryan (D. NY 18) has signed on to the AM Radio for Every Vehicle bill. During our meetings in March, we met with Congressman Ryan in his Washington DC Office. The legislation currently (H.R. 3413) has 244 co-sponsors, including 16 members of the NY delegation. Rep. D'Esposito, Anthony [R-NY-4] Rep. Espaillat, Adriano [D-NY-13] Rep. Goldman, Daniel S. [D-NY-10] Rep. LaLota, Nick [R-NY-1] Rep. Langworthy, Nicholas A. [R-NY-23] Rep. Lawler, Michael [R-NY-17] Rep. Malliotakis, Nicole [R-NY-11] Rep. Meng, Grace [D-NY-6] Rep. Molinaro, Marcus J. [R-NY-19] Rep. Morelle, Joseph D. [D-NY-25] Rep. Nadler, Jerrold [D-NY-12] Rep. Ryan, Patrick [D-NY-18] Rep. Stefanik, Elise M. [R-NY-21] Rep. Tenney, Claudia [R-NY-24] Rep. Tonko, Paul [D-NY-20] Rep. Williams, Brandon [R-NY-22] The companion bill in the Senate has 47 cosponsors, which includes NY Senator Kirsten Gillibrand. The Senate bill has already passed the Senate Commerce Committee and is waiting for a vote on the Senate Floor. In the House, we are still waiting for a vote in the Committee or on the House Floor. We want to thank Rep. Ryan and all members of the New York delegation who have signed on to this important bill. The legislation will make sure that AM Radio Receivers remain in automobiles. You can see a copy of the bill here.

Gen Media Partners and the Ten-Minute Trainer Network are partnering for a free livestream event aimed at empowering political campaigns of all sizes in our upcoming mid-term elections. “Maximizing Political Dollars for Small & Medium Markets” will take place on Wednesday, April 24th at 12 Noon EST and will feature industry experts sharing insights and tips on how to leverage political advertising budgets. Join Roger Rafson, SVP of Political/Issue Advocacy and Strategic Alliances, Linley Grande, VP, Political Strategies Manager, and Heather Karban, Political Broadcast Strategist, as they provide actionable tactics to maximize every advertising dollar while adhering to legal boundaries. “Preparation is vital to ensure stations take full advantage of the political cycle. Those who invest less than an hour of their time will benefit greatly from our experienced panel,” said Greg Tacher, Executive Vice President, of Gen Media Partners. Register here.

The 2024 Rising Above: A Virtual Sales and Management Summit is now archived for viewing. The two-day summit from the Ten Minute Trainer Network was co-hosted by Speed Marriott and Derron Steenbergen. The online event featured interactive Q&A sessions, valuable insight into expert sales and leadership strategies, and much more. You will learn crucial information about how to rise above the challenges in the current sales and management environment. The conference is offered free of charge to NYSBA members in good standing. To watch archived Rising Above if you are a registered member of the network, click here. If you are not a registered member of the network, click here to register and start watching content.

Last week, the FCC finally released its decision regarding its FM Booster programming content rules. Since the 1970s, the FCC has authorized FM on-channel boosters to help improve the signal reach of the primary station. Unlike translators, boosters operate on the same channel as the primary station. Because of the potential for co-channel interference, the FCC has been careful with these facilities. On-channel boosters can operate only within the contours of the primary stations. Also, the rules prohibited a booster from originating any content. All content had to be the same as the primary station. The rule prohibiting originated programming on booster stations has now been changed. Stations will be allowed to originate programming on their boosters subject to specific limitations. The key limits are that stations may only originate for three minutes per hour and only own 25 boosters that originate programming. The FCC noted: “[W]e find that program origination over boosters will advance the public interest with benefits that outweigh the concerns expressed in the comments, subject to the following safeguards and limitations:  a limitation on program origination to three minutes per hour (five percent of each hour); a notification requirement for program originating boosters; a requirement for program originating boosters to receive and broadcast all emergency alerts in the same manner as their primary station; and a limit on the number of boosters a station can operate.  We note this use of boosters will be voluntary and find that granting this level of flexibility to broadcasters is consistent with our ongoing policy goal of supporting the continued viability of the radio industry for the benefit of the listening public and helping to ensure that radio remains competitive with other technologies and services.  To the extent that broadcasters choose to use boosters in this way, however, they will be required to follow the rules that we adopt herein as well as any conditions on operations that the Commission might impose when it grants authorizations." Importantly, the FCC issued a Further Notice of Proposed Rule Making asking for comment on a number of proposed rules. Those rules include: Notification to FCC about boosters that originate programming. Amending 47 CFR § 74.1204(f) and propose that booster stations submit a predicted interference for areas outside the station's contour analysis during construction. Should the FCC adopt rules requiring synchronization between the booster and the primary station? Boosters must comply with EAS. FCC asks if they must notify all EAS participants who monitor the primary station and booster. Grandfathered superpowered FM stations can only use a new booster within the standardized contour of the station. Booster stations may not broadcast programming prohibited by the primary station. FCC proposes to cap the number of originating booster stations at 25. FCC proposes that originating booster stations should be subject to FCC political rules, including online inspection and political files. The issue is whether these files should be included in the primary station's file or a separate file. FCC solicits comments on how its new booster policy impacts diversity, equity, and inclusion. Until these rules are approved, the FCC will allow stations to originate programming on their booster stations only on an experimental license for one year. The authorization will be renewable. Experimental licenses can be obtained for existing boosters. For new boosters, a station must obtain a construction permit and, at the same time, file for experimental authorization to originate programming. The FCC stated further that the Media Bureau must condition any experimental authorization, the licensee’s adherence to the rules proposed in the Further Notice, and any additional, appropriate conditions. This was a highly controversial issue that began several years ago when GeoBroadcast Solutions (GBS) stated it had technology that would allow boosters to originate programming without harmful interference to the primary station. GBS claimed that this would allow radio stations to geotarget advertising. The proposal was opposed by the NAB and a number of radio groups. They raised both technical concerns as well as potential harm to the radio advertising market. (NYSBA raised concerns about the aggregate levels of interference that could be caused by numerous boosters providing different programming). The FCC’s decision can be described as cautious. While endorsing the concept, the key issue will be the potential limitations resulting from the proposed licensing and service rules. You can see the FCC’s decision here.

With AI being deployed rapidly in broadcasting, Futuri has put together two AI-based webcasts. Both focus on “How AI can Help Sales and Programming.“ One webinar focused on radio, and another on TV If you are looking for a basic discussion on how AI can impact your station, these webinars are worth watching. You can access both the radio and TV webinars here.

The FCC released its quarterly public notice, Broadcast Station Totals, itemizing the number of stations currently operating in each broadcast service. AM STATIONS 4,427 FM COMMERCIAL 6,663 FM EDUCATIONAL 4,320 TOTAL 15,380 UHF COMMERCIAL TV 1,015 VHF COMMERCIAL TV 367 UHF EDUCATIONAL TV 267 VHF EDUCATIONAL TV 116 TOTAL 1,765 CLASS A UHF STATIONS 349 CLASS A VHF STATIONS 30 TOTAL 379 FM TRANSLATORS & BOOSTERS 8,913 UHF TRANSLATORS 2,459 VHF TRANSLATORS 659 TOTAL 12,031 UHF LOW POWER TV 1,516 VHF LOW POWER TV 313 TOTAL 1,829 LOW POWER FM 1,960 TOTAL 1,960 TOTAL BROADCAST STATIONS 33,344 Compared to last year’s report, there are 45 fewer AM stations and 18 fewer commercial FM stations, but 101 more noncommercial FM stations. There were 5 more commercial UHF TV stations and 2 more commercial VHF TV stations. There are 3 more noncommercial UHF TV stations, with 3 fewer noncommercial VHF TV stations. Our thanks to noted FCC attorney David Oxenford for compiling this information. You can see the FCC’s 2023 Report here. You can see the FCC’s 2024 Report here.

A recent edition of Inside Radio reported on a report from Edison Research regarding the increasing popularity of podcasts. The article noted: "Edison Research's 2024 Infinite Dial study shines a spotlight on podcasts, which have shown significant growth over the past seven years, especially among adults 18-34 and 18-49. The medium's weekly 48% and 46% reach of those respective demographics are now right in the ballpark of live and time-shifted TV, which reaches 50% and 58% according to Nielsen Comparable Metrics for Q3 2024. It should be noted that AM/FM radio tops both, with 77% and 81% reach, respectively." You can see the complete analysis in Inside Radio here.

One of the key questions about AI is whether it can replace humans with respect to composing music. A study by SoundOut found that humans are still the best, at least for now. According to an article appearing in TV Newcheck: “A new study into generative AI in music production shows that machine learning tools, while promising, lag human composers in creating music with emotional impact.  Conducted by SoundOut, a provider of music testing, and Stephen Arnold Music (SAM), a sonic branding specialist, the study compared music produced by Gen AI with human composed music and found that humans hold the edge for emotional accuracy and appeal especially in producing music for brands.” The article goes on to state, “While humans outperform AI on the emotional front, this study reveals that AI ‘composing by numbers’ is not far behind,” says SoundOut CEO David Courtier Dutton. “AI is not bad at creating emotionally appealing music, but humans are better.” At least for now, score one for the humans. You can see the complete article in TV NewsCheck here.

Over the past several years, there has been considerable debate among the top companies providing data for television broadcasting. Recently, the Media Ratings Council approved Comscore and Video Amp. A recent article in Ad Exchanger focused on this topic. The key appears to be “first-party” data. “Still, buyers and sellers need some sort of standardization to feel confident transacting on alternative currencies. Advertisers can expect more consistency from their measurement partners as brands build up more first-party data and incorporate it into media planning, Muller said.  With first-party data, measurement companies can better attribute the viewership overlap between streaming services to provide deduped reach and frequency.” The article provides insight into the competing companies providing data for television broadcasting. You can see the article in Ad Exchanger here. You can access more information about the Media Ratings Council here.

With Artificial Intelligence (AI) becoming both a benefit and a concern to the industry, Jacobs Media conducted a study analyzing listeners' concerns with AI. In an article appearing in Inside Radio, Jacobs Media provides a detailed look at current attitudes towards AI. According to the article: “The majority (58%) of core radio listeners are very, or somewhat, familiar with artificial intelligence and are very concerned with its use for cloning on-air personalities’ voices.  Listeners are less worried about using AI to record commercials and station identifiers.” The article goes on to report a number of important findings from Jacobs Media’s “Tech Survey 2024.”  The data is important and worth a read. You can see the survey results as reported in Inside Radio here.

The FCC continues its efforts to move against illegal pirate radio stations. Under the PIRATE Act, property owners may be held liable if they allow an illegal pirate station to operate on their property. The FCC’s most recent actions involved notifying property owners in New York that illegal pirate stations were operating on their property. Notices were sent to: Poughkeepsie: Signals were emanating on 87.9 FM from the property at Albert Road, Poughkeepsie, New York Mount Vernon: Radio signals on frequency 104.5 FM were emanating from the property at South 3rd Avenue, Mount Vernon, New York. We strongly support the FCC’s efforts in routing out illegal radio stations in New York. The FCC's Enforcement Bureau, especially the Region 1 Office in New York, is doing an outstanding job. You can see the notice concerning 87.9 FM in Poughkeepsie here. You can see the notice concerning 104.5 FM in Mount Vernon here.

Last week's webinar about police radio encryption with Dan Shelly (President and CEO of the Radio Television Digital News Association) is now archived for viewing courtesy of the Kansas Association of Broadcasters. Dan has been a strong ally against the troubling trend of radio encryption. It prevents journalists from being able to access police scanners and then inform citizens about potentially dangerous situations. Learn more about the issue by watching the webinar here.

While we have made significant progress in securing support for the AM Radio for Every Vehicle Act (S. 16669 and H.R. 3413), the major automakers are not backing down. According to an article in Radio Ink, the major automakers spent considerable amounts to block the bill. “GM raised its lobbying spend in Q4 2023 to $2.82 million, tying it for the tenth highest-spending corporate lobbyer with Google.  The company spent $2.45 million in the third quarter.  According to required lobbying disclosures, “S.1669/H.R. 3413, AM Radio” was listed among the policies a team of five, including some of GM’s senior lobbyists, pushed in the House of Representatives and the Senate.” According to the article, Honda, Ford, Tesla, and Rivian continued to spend money to lobby against the legislation. Despite the efforts of the auto industry, bi-partisan support for the legislation continues to grow. We now have 239 co-sponsors for H.R.3413, which constitutes a majority of the House of Representatives. We also have 47 co-sponsors in the Senate (S. 1669). We are hoping to move the bills in the late spring or early summer. You can see the article in Radio Ink here.

This is a gentle reminder that you must upload your quarterly issues programs list to the station’s online public inspection file by April 10. Remember these lists are important: “Quarterly Issues/Programs Lists are required for all commercial and noncommercial full-power radio and TV stations (including Class A TV stations).  These Lists are required by the FCC to demonstrate how a broadcast station served the needs and interests of its community of license and its service area. Serving the needs and interests of a station’s service area is required by the Communications Act, and the Quarterly Issues/Programs Lists are the only documents required by the Commission to be routinely prepared to demonstrate to the public how a station has been providing that service.  The Lists must demonstrate that the station has met its obligation to serve the public interest through issue-responsive programming.” The FCC now has the ability to examine your online file from Washington to see if it has been filed on time. The FCC will take action against the stations that file late. Make sure your quarterly lists are in order and filed on time. You can find a good summary of the Quarterly Issues Programs List requirements here.

An interesting analysis by Paul Suchman, Chief Marketing Officer at Audacy, appeared in Ad Age recently. The analysis focused on the effectiveness of a cross-media campaign. According to Mr. Suchman: “Brands that utilize cross-platform audio—over-the-air (OTA) radio, streaming and podcasts, together as part of their media strategies—are realizing better campaign performance, better full-marketing funnel metrics and most importantly, better outcomes for their businesses.” He noted further: “Cross-platform audio plans that activate the audio trifecta are poised for success.  Cross-platform listeners are twice as likely than average to make a purchase after hearing audio ads.  For advertisers, the power of the audio superfan is unmatched.” You can see his complete analysis in Ad Age here.