FCC ownership review

Hubbard Goes After Virtual Duopolies

The group owner would like the FCC to resolve the issue of so-called virtual duopolies that Hubbard has challenged before the commission in two markets.
TVNewsCheck,

Hubbard Broadcasting is asking the FCC as part of its review of media ownership rules to decide whether to allow so-called virtual duopolies that Hubbard believes violate current rules.

Hubbard says it has challenged such arrangements in two markets where it owns stations, Duluth and Rochester, both Minnesota, appealing staff approvals to the full commission. But the commission has yet to act.

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The FCC should resolve the cases and the larger issue of virtual duopolies "in this proceeding based upon a complete record and rational findings," Hubbard says.

"For at least six years, certain television station licensees have combined their operations in markets that do not permit lawful duopolies under the current rule by combining under contractual business arrangements," Hubbard says in comments filed yesterday, but only made available online today.

"These arrangements typically have included ‘shared services,' the common ownership of non-license assets, and substantially combined personnel and financial management of the two stations. The practical effect of those arrangements has been common control of both television stations.

"The arrangements have occurred in a number of DMAs, including small markets in which two of only four or five full-power stations have been consolidated.

"Those consolidations have included affiliates of the major television networks, resulting in the formation of ‘virtual duopolies' among two of the top four rated stations in markets with a total of only four commercial television stations."

Even if the FCC ultimately decides to allow virtual duopolies, it should not sanction "past improper conduct," Hubbard says.

"In other words, parties that have been in violation of the current rule should not be permitted to profit from behavior that was inconsistent with the letter and spirit of the duopoly rule or benefit from the lack of decision-making under past administrations. Past violations of the duopoly rule should be declared improper by the commission and unwound."

If, on the other hand, the FCC elects to keep the rules as they are, it should "promptly reverse all improper duopolies," it says. "The lack of oversight by previous administrations should be corrected so that all participants in the television market are subject to the same rules."

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Comments (2) -

David David posted a year ago
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Hubbard is a dinosaur and a Johnny come lately to the party. Wake up and get with the 1990's or you will be an extinct just like the dinosaurs!
Thomas Scanlan posted a year ago
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Hubbard's point is clear. They operate a strong ABC affiliate in Duluth, and the once dominant station held sway over two other long established VHF's and a brand new UHF Fox affiliate. With the stroke of a pen the CBS headed down the hill and literally took up residence in the NBC affiliates' building, Shared news, promotion, tech staff, probably traffic, production and station management wiped out all but the Corporate name (Malara broadcasting) for Channel 3. The FCC should either makes these entities actual duopolies, and outlaw them. Trying to go 'halfway' rather than one way or the other to satisfy various special interests makes little if any sense in the long run. Perhaps the FCC should take a lesson from Canada's CRTC. Decades ago the CRTC authorized various 'twinstick' applications from one-station markets or struggling two-station markets, where clear evidence could be submitted showing there was insufficient revenue to operate two (or more) stations. Such showings were given a straight-out waiver of the one-to-a-market rule. Thunder Bay and Sault Ste. Marie, Ontario are two examples of several 'twinstick' markets.

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