Settles with licensee of New York radio station

By John Eggerton

The FCC has ruled that a radio broadcast over a decade ago qualified as indecent and has reached a consent decree with WSKQ-FM New York in which it will pay $10,000. That was the word from Ajit Pai’s acting Media Bureau chief Michelle Carey.

The FCC, under chairman Tom Wheeler, ruled in March 2016 that the station did not violate an FCC rule against broadcast hoaxes but did not rule on the merits of an indecency complaint, saying even if it were indecent, the violation would not rise to the level of denying renewal of the station’s license—the complaints were part of a challenge to that license.

That March decision was appealed.

In the consent decree this week, the FCC’s Media Bureau upheld the finding that the hoax rule had not been violated.

As to the indecency complaint, the station had said that the broadcasts were not indecent. But the Media Bureau thought otherwise. “Based on our review of the record, we find that the broadcasts are of a nature that could support a forfeiture proceeding against Licensee for violations… but do not implicate Licensee’s basic qualifications, demonstrate a failure to serve the public interest, convenience, and necessity over the Station’s license term of 1998-2006, or constitute serious violations.”

At issue was a Spanish-language broadcast March 8, 2005. The complainants said it used indecent language to describe “how a man desired to have perverse sexual relations.”

No tape or transcript was supplied and the licensee argued about what words had been used and, while conceding the song was racy, said it did not believe it was “in any way indecent.”

The FCC disagreed.

The FCC under Wheeler also struck an agreement with a Spanish-language station over an indecency complaint.

“The PTC applauds the FCC’s action to hold a broadcaster publicly to account for violating the longstanding broadcast indecency law,” said the Parents Television Council, which saw it as a sign of things to come.

“This announcement today should serve as a serious shot across the bow for all broadcast stations, whether they be radio or television, reminding them that the airwaves are public property. Broadcasters borrow the airwaves from the public for free; and in exchange for a broadcast license, they promise to serve the public interest. Congress, the FCC and the courts have all agreed that a broadcaster’s public interest obligation requires licensees not to air legally indecent material at times when children are likely to be in the audience,” said PTC president Tim Winter in a statement.

Music News Desk

iHeartMedia, which reaches 91 percent of the U.S. Hispanic population on a monthly basis announced last week ON THE MOVE with Enrique Santos, its hallmark English language Hispanic targeted content initiative that complements its already successful Spanish-language Hispanic offerings. Today, 53 percent of the Hispanic population in the U.S. are primarily Spanish-language first households and 43 percent are primary English-language households, and iHeartMedia will now deliver to both at scale across broadcast and digital platforms.

On the Move with Enrique Santos is the first English-language radio program to feature Hispanic broadcast powerhouse Enrique Santos, Chairman and Chief Creative Officer of iHeartLatino, iHeartMedia’s new Hispanic platform. The new two-hour music-intensive Contemporary Hit Radio (CHR) weekend program features what’s hot and moving in music, entertainment, lifestyle and current events targeted to the Hispanic community.

On The Move With Enrique Santos will originate from Miami and debut the weekend of April 15 on more than 100 iHeartMedia stations nationwide, including: WKTU-FM/New York, KIIS-FM/Los Angeles, WKSC-FM/Chicago, KYLD-FM/San Francisco, KHKS-FM /Dallas-Ft. Worth, WIHT-FM/Washington, D.C., WWPW-FM/Atlanta, WIOQ-FM/Philadelphia, WXKS-FM/Boston and WHYI-FM/Miami. The program will be available on iHeartRadio, iHeartMedia’s all-in-one digital music, podcasting and live streaming radio service and will also be nationally- syndicated by Premiere Networks.

In September 2016, iHeartMedia joined forces with Santos to develop iHeartLatino, an unprecedented Hispanic multi-platform initiative building on Santos’ unparalleled profile within the Latino community and leveraging iHeartMedia’s reach of more than a quarter of a billion listeners monthly. Recognizing the increased importance and size of the U.S. Hispanic populations, both Spanish- and English-speaking, the new iHeartLatino division aggregates iHeartMedia’s vast portfolio of Hispanic targeted programming and content across multiple platforms - broadcast, digital, social and live events.

As one of the most popular Hispanic radio hosts in America, Santos has built an enthusiastic following and connection with his audience. In addition to the new weekend show, Santos will continue to anchor iHeartMedia’s Spanish-language station TÚ 94.9 with his top-rated program for Spanish-speaking audiences and nationally syndicated weekday morning show Tu Mañana con Enrique Santos, which broadcasts weekday mornings from 6 -10 a.m. local time.

“The Hispanic culture plays a critically important role in America today, and we take great pride in serving that community as well as helping our advertisers reach such an important audience,” said Bob Pittman, Chairman and CEO of iHeartMedia. “The addition of this new English-language program adds a new dimension and immediate scale which no other outlet can match and is unique to iHeartMedia.”

Born to Cuban parents in Chicago, Illinois, Santos gravitates fluidly between the Hispanic and mainstream American radio landscapes. Throughout his career Santos has continuously set ratings and sales records in the nation’s most diversified Hispanic radio markets, and has interviewed some of the biggest names in pop culture.

His clout also extends to the political arena where Santos has conducted historic interviews with prominent figures such as Sen. John McCain, Sen. Marco Rubio, President Barack Obama, First Lady Michelle Obama, and Hillary Clinton.

The winner of the 2014 Premio Juventud in the My Favorite DJ category became part of the exclusive roster of Marc Anthony’s new agency MAGNUS Media last year. In 2015, Santos was also named National/Syndicated Radio Personality of the Year by Radio Ink and was awarded the prestigious Medallas de Cortez Medal. He is frequently invited to present and host some of the top award ceremonies of the music industry including ASCAP Latin Music Awards, Billboard Latin Music Awards, iHeartRadio Fiesta Latina and on the red carpet at the iHeartRadio Music Awards.

Discussions at a Radio Conference

When the industry’s biggest players gather together at the Hispanic Radio Conference, no topic is too big or too small, and no subject too controversial. They could discuss the impact changes at the FCC will have on you. Where digital programming is going, and where they see new revenue opportunities. How they are finding, developing, and retaining sales and on-air talent. They could speak about politics and the industry’s role in a new, uncharted landscape.

The Hispanic Radio Executive Leadership Roundtable is unscripted. But, because these are the industry’s leaders, their reactions and observations will help guide your plans and response to budgets, sales and programming for the coming year.

From Wall Street investors to your local direct sales, ratings, and technology, Hispanic radio leadership’s perspective on today’s industry will help you navigate what’s coming tomorrow.

Moderator:

Jose Valle served as president of Univision Radio from 2010 to 2015, leading the transformation and modernization of what was a traditional radio group into a best-in-class “listener first” based organization. Over the last year, he served as president of Political & Advocacy Group Sales for UCI, overseeing political advertising strategy and sales to advocacy groups, trade associations, and campaigns for all UCI’s platforms. Earlier in his career he was VP/GM of Univision Radio Los Angeles. Before joining UCI, he was president and GM of Telemundo’s flagship station, KVEA.

Panelists:

Albert Rodriguez is COO of Spanish Broadcasting System, a job he had held since 2012. He is responsible for the day-to-day operations of the company and oversees the revenue and profit performance of the company’s consolidated operations, including radio, television, interactive and entertainment divisions. Previously, Rodriguez was the chief revenue officer of SBS’s television segment and GM of the Miami television market from October 12, 2010 to January 6, 2011, GM of the Miami television market from January 21, 2010 through October 11, 2010, and GSM for the Miami radio market from November 1999 through January 2010. Before joining the company’s television segment, Rodriguez was the GSM of SBS’s radio properties in Miami.

Norberto Sanchez is chairman and CEO of the Norsan Group, which runs Norsan Multimedia, a Spanish-language communications company that includes 12 radio stations in the Southeast, four of them covering the Charlotte market; the company also owns Spanish-language newspapers. Sanchez started his company in Atlanta and has gradually been moving more and more operations to Charlotte. Apart from the communications industry, the Norsan Group has a large role in the food industry, including a restaurant and catering division and Prime Meats, a USDA meat-processing facility serving the hospitality industry.

Ismar Santa Cruz is vice president/managing director of radio strategy for Univision Communications, overseeing content strategy, music genre curation, and continual success for Univision’s radio portfolio and leading programming initiatives for its 64 owned-and-operated stations in 15 top U.S. Hispanic markets and Puerto Rico. He also plays an integral role in Univision Music’s multi-platform strategy. Santa Cruz joined UCI to co-found the internal strategic consulting and consumer research division of Univision Radio. Santa Cruz has been instrumental in achieving double-digit audience growth year-over-year on broadcast and digital platforms, developing Univision’s Sonic Logo across all brands, and identifying Univision’s 2014 FIFA World Cup anthem, “Adrenalina.”

Enrique Santos is chairman and chief creative officer of iHeartLatino, heading iHeartMedia’s Latin direction and strategy. His daily morning show is syndicated nationally via Premiere Networks and airs live from iHeart’s TÚ 94.9 in Miami. Born to Cuban parents in Chicago, Santos moves freely between the Hispanic and mainstream American radio landscapes. His bilingual broadcasts are a crossover hit, combining humor, social satire, and political commentary to bridge the cultural and generational divide of a diverse cosmopolitan audience. No matter how busy his schedule, Santos has never lost his community ties and continues volunteering as a reserve police officer for the City of Miami Police Department.

Your Editor Adds: And enjoy José Valle´s dry and effective sense of humor.

Media Bureau points out petition was unopposed and is in public interest

By John Eggerton

The FCC’s Media Bureau has granted a petition by a pair of Australian citizens to control 100% of broadcast stations (four radio stations in Alaska and Texas).

The FCC has granted aggregate foreign investments in broadcast licensees of up to 49.99% under foreign ownership rules loosened in 2013 (the Pandora decision), and just last month allowed foreign investors to own up to a 49% equity stake in TV and radio station owner Univision, including up to a 40% stake by Mexico’s Televisa.

But this is the first time it has allowed 100% foreign ownership of the parent of broadcast licensees.

The FCC’s Media Bureau, which issued the declaratory ruling Feb. 23 allowing the ownership change, said the petition had been unopposed and that it had consulted with the “relevant agencies” on law enforcement, national security, foreign policy and trade issues—and none of those agencies raised any objections or said any conditions should be put on the deal.

Any deal that will result in more than 25% foreign ownership triggers such heightened scrutiny, but since 2013 such a 100% control scenario has been possible, which the FCCs’ Media Bureau pointed out in noting that the petition was reviewed under that 2013 clarification rather than the 2015 decision to streamline foreign ownership reviews, which explicitly said the FCC would consider petitions for 100% control. That is because the 2016 streamlining has yet to take effect.

But under that heightened scrutiny, the bureau has concluded that not only are there no grounds to object, there are grounds to favor the deal. “[W]e find that grant of the Petition would: (1) increase the likelihood of continued service to small communities by authorizing investment by individuals who are ready, willing, and able to operate the stations based on their extensive experience operating them to date; (2) facilitate foreign investment in the U.S. broadcast radio market; and (3) potentially encourage reciprocal investment opportunities for U.S. companies in foreign markets. For these reasons, we find that grant of the Petition will serve the public interest.”

The stations at issue are KGTW (FM) Ketchikan and KINY (AM) Juneau, both Alaska, and KCMC (AM) Texarkana and KTOY (FM) Texarkana, both Texas.

The stations are owned by Frontier, an Alaska-based company controlled by Richard and Sharon Burns, who are Australian citizens. They each own 10% of the ownership interests in the stations and want to buy the other 80% so they would hold 100% of the ownership interest.

“[A]fter the proposed transaction, the Burnses, would hold 100 percent of the ownership interests in Frontier, the parent of all four Licensees, and, through Frontier, would indirectly own 100 percent of the interests in the Licensees,” the Bureau said.

Both of the Burnses have lived and worked in the U.S. for more than a decade, the FCC pointed out. They have managed the Alaska stations since 2006 and the Texarkana stations since 2013.

Your Editor Welcomes this liberalization. No more borders, not even there.